Two years later, momentum grows to reform NYC’s short-term rental rules

Two years after NYC's short-term rental law took effect, New Yorkers are worse off. Independent housing and cost-of-living data confirm that Local Law 18 (LL18) has unquestionably failed to deliver on its promise to ease the housing shortage, as the city's affordability crisis only deepened. Instead, the city's short-term rental law has squeezed homeowners who rely on income from hosting short-term stays and reduced visitor spending that helps sustain outer borough small businesses.

Now, a broad coalition of civil rights activists, housing advocates, and small business leaders is urging the City Council to pass Intro. 1107-modest reforms that would restore income opportunities for homeowners, expand affordability, and ensure tourism dollars reach every corner of the city-without taking any housing units off the market.

Independent data confirms:

• Rents have surged, vacancies remain flat-Citywide average rents have climbed to $3,730, a 8.1 percent increase since 2023, according to StreetEasy's Rent Index. In the outer boroughs, the rent burden is even heavier when compared to people's income, or Area Median Income. At the same time, despite an over 90 percent decrease in short-term rentals in NYC, rental vacancies have dropped 0.5 percent from two years earlier, showing no sign of meaningful improvement in housing availability, according to StreetEasy's Total Rental Inventory data as of July.

• Black and Latino families are leaving NYC as cost of living rises-The cost of living in New York City is now 74 percent higher than the national average, with almost 3 million New Yorkers paying more than 30 percent of their income on rent, putting them at risk of homelessness. The trend is worse among Black and Latino households who have left New York City at higher rates, demonstrating how the city's affordability crisis is disproportionately impacting communities of color.
• Neighborhood businesses have lost vital income from visitors who once spent roughly $800 per trip in local shops and restaurants but are increasingly priced out of the city due to lack of affordable lodging options.
• Small businesses in the outer boroughs are facing reduced foot traffic and declining sales, a sign of weakening neighborhood economies. Citywide employment has decreased or remained stagnant, underscoring the strain on small businesses-the city's largest employers and a vital source of local jobs.

Fewer visitors and higher costs

As communities across the city are seeing their local economies hit hard by a steep decline in tourism, New York City is also a far less affordable destination after LL18 for low- and middle-income travelers, especially families with children. Hotel costs continue to reach record-highs, up 12.6 percent in the last two years-more than triple the increase nationally-and families who once relied on affordable short-term rentals are increasingly priced out. Visitors who want to stay in the outer boroughs-often to be close to loved ones, drop off college students, or remain near a hospital for essential care-now have few, if any, options.

As a result, trips that once supported local shops and restaurants are either being cut short, pushed into midtown Manhattan's high-priced hotel market, or abandoned altogether, leaving both visitors and neighborhood businesses worse off. Rising travel costs are likely a factor contributing to NYC's tourism bureau cutting its 2025 forecast for visitors, including 400,000 fewer domestic travelers.

Growing momentum for common-sense changes without taking away homes

Supporters of Intro. 1107 are urging the City Council to pass modest reforms that will make a significant difference to the livelihoods of many in their communities, while helping to return visitors to the city. Intro. 1107 would make three simple changes:

• Allow New Yorkers in private homes to share them while away
• Increase the guest limit from two to four
• Permit the use of internal door locks so guests and host can have increased privacy

The bill aims to put money back in the pockets of everyday New Yorkers, helping pay for bills and essential home repairs. The coalition backing the legislation understands that Black and Latino families are at the greatest risk of displacement if the City Council does not act, and supports these changes to keep families in their homes, sustain small businesses, and ensure that the benefits of tourism are spread equally across all five boroughs.

A broad homeowner-powered coalition

Coalition members have joined rallies, community meetings, and even a local door-knocking campaign to share the stories of New Yorkers most impacted by the current rules. This homeowner-led advocacy reflects the urgency of the moment-with each passing month, more families and small businesses are feeling the impact on their pockets. Here are some of their stories:

The advocacy of these homeowners has captured the attention of civil rights, housing, good government, and business leaders. The NAACP of Brooklyn and Jamaica, the New York City Housing Partnership, the New York Urban League, all five borough chambers of commerce, and over a dozen other organizations have joined homeowners to demand the City Council take action. Their combined voices represent a broad cross-section of New Yorkers and reflect a growing academic consensus that agrees that the current rules are failing to improve the housing crisis, are hurting communities, and that targeted reform is both urgent and necessary.

"Brooklyn's communities are united in the commitment to advancing homeownership and the broader pursuit of equity and economic prosperity for those who have long been marginalized. The diverse voices of Brooklyn-young people, elders, and multi-generational homeowners-underscore the urgent need for policies that ensure every resident can build generational wealth and stability. Intro 1107 is a crucial step toward fairness, empowering homeowners to maintain economic resilience and remain rooted in the communities they have built. The bill provides practical protections, allowing primary homeowners to rent responsibly without sacrificing privacy or safety, and helps ensure that the path to prosperity remains open to all Brooklynites. The NAACP Brooklyn Branch stands firmly in the fight for economic justice, recognizing that affordable, stable housing is essential to thriving neighborhoods, strong schools, and unlocking the full potential of every community member. We look forward to collaborating with our partners and coalition members to convene a roundtable with our Economic Development Committee to center a vision of homeownership rooted in equity, justice, and opportunity for all across Brooklyn."

Joan Alexander-Bakiriddin, President of NAACP Brooklyn Branch

"For too long, communities of color in Queens have carried a disproportionate burden of rising housing costs and shrinking stability. Homeownership is overwhelmingly how we build generational wealth, yet systemic barriers continue to lock too many of our neighbors out of that chance. Int 1107 is a crucial step toward fairness, protecting Black homeowners' ability to remain in their neighborhoods, and ensuring that every family has the tools they need to face the broader affordability crisis, including the choice to responsibly short-term rent their home. The NAACP Jamaica Branch understands that housing justice is inseparable from economic and racial justice. When homeowners can afford to stay, neighborhoods thrive, schools strengthen, and families are able to plan for their futures. This bill helps safeguard the promise of homeownership in Queens, and we are proud to stand with our neighbors and this broad coalition of advocates in urging swift passage to preserve affordability, equity, and community for generations to come."

Candace Prince-Modeste, President of NAACP Jamaica Branch

"Overregulation is a major contributor to the affordability crisis in New York City and the prohibition against primary residents of 1-2 family houses from sharing their homes, when they're away, is an example that the City Council can act to remedy."

Kathryn Wylde, President and CEO of Partnership for New York City

"Current short-term rental rules are hurting, not helping everyday people. In the midst of an affordability and housing crisis, neighborhoods like Bedford-Stuyvesant-where short-term rentals help families and neighborhood businesses stay afloat-are suffering the most. New York City's homeowners should trust that the city has their back during these economically challenging times. Intro 1107 offers a common-sense solution that empowers struggling homeowners to earn extra income for bills and essential repairs, all while safeguarding long-term housing."

Jamie Smarr, President and CEO of the New York City Housing Partnership

"Current short-term rental rules disproportionately impact neighborhoods beyond Manhattan and marginalized communities. We have heard stories from our own members who are homeowners that can no longer make their mortgage, small businesses that are seeing less customers from out of town, and visiting relatives who no longer have a place to stay near their families. This law needs to be reformed to support New York families and our communities across all boroughs."

Arva Rice, President and CEO of the New York Urban League

"The City's strict regulations on short-term rentals have significantly affected local restaurants in the outer boroughs and Upper Manhattan. With fewer short-term rental options, visitors are less likely to explore these neighborhoods, impacting the local economy. It would be beneficial for the City to reconsider its current approach to short-term rental regulation and find a balanced solution that allows responsible homeowners to participate, helping to support businesses across all boroughs."

Sandra Jaquez, President of the New York State Latino Restaurant, Bar & Lounge Association

The growing momentum behind Intro. 1107 is clear. New Yorkers cannot afford another year under policies that limit income opportunities, kill jobs, and displace Black and Latino residents. The City Council must ensure that the benefits of tourism can continue to be a lifeline for families building a future in our city. Acting now will help stabilize neighborhood economies and keep long-time residents in their homes. Every month without reform means more families pushed to the brink and more low- and middle-income tourists priced out of New York. The choice is simple: deliver common-sense reforms that work for all New Yorkers, or risk deepening a crisis that is already harming the very neighborhoods the city should be fighting to protect.