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The rapid rise of short-term rental platforms like Airbnb have dramatically expanded the use of traditional
apartments as transient hotel rooms—sparking a public debate in New York and in communities worldwide
about the real-world consequences of this online marketplace.
Where supporters of Airbnb and other rental sites see a catalyst for entrepreneurship, critics see a threat to
the safety, affordability, and residential character of local communities. Are the new platforms fueling a
black market for unsafe hotels? By bidding up the price of apartments in popular areas, do short-term
rentals make metropolitan areas like New York City less affordable? Is the influx of out-of-town visitors
upsetting the quiet of longstanding residential neighborhoods?
Until now, the discourse has centered more on opinions and anecdotes than facts. This report seeks to
bridge the gulf between rhetoric and reality. It offers the first exploration of the data on how users in New
York City, one of Airbnb’s most important markets, utilize the most successful online lodging rental
platform. More broadly, the report endeavors to use quantitative data to inform an ongoing debate about
how we embrace emerging, disruptive technologies, while protecting the safety and well-being of our
citizens.
By analyzing Airbnb bookings for “private” stays,
this report presents a snapshot of short-term rentals in
New York City from January 1, 2010 through June 2, 2014 (the “Review Period”). Among the key findings:
Short-Term Rentals Experienced Explosive Growth. Private short-term bookings in
New York City on Airbnb increased sharply during the Review Period, registering more than a tenfold
increase. The associated revenue also spiked, nearly doubling each year. This year, revenue to Airbnb
and its hosts from private short-term rentals in New York City is expected to exceed $282 million.
Most Short-Term Rentals Booked in New York Violated the Law. State and local
laws in New York—including the Multiple Dwelling Law and the New York City Administrative Code—
prohibit certain short-term rentals. During the Review Period, 72 percent of units used as private short-
term rentals on Airbnb appeared to violate these laws.
Commercial Users Accounted for a Disproportionate Share of Private Short-
Term Rentals by Volume and Revenue. Ninety-four percent of Airbnb hosts offered at most
two unique units during the Review Period. But the remaining six percent of hosts dominated the
platform during that period, offering up to hundreds of unique units, accepting 36 percent of private
short-term bookings, and receiving $168 million, 37 percent of all host revenue. This report refers to
these hosts as “Commercial Users.”
Airbnb hosts can offer a “shared room,” where the host remains present during the stay, an “entire home/apartment,” where the host is not present, or a “private
room,” where the host may or may not remain present during the stay. This report and its source data address only the last two categories, which, when
combined, are labeled “private” stays, rentals, or reservations in the report.
By assuming that all reservations listed as a “Private Room” complied with these laws, the analysis understates the degree to which rentals on Airbnb may have
violated the law. Specifically, a “Private Room” rental for less than 30 days is legal only where a permanent resident was present during the stay.