Six months after New York City placed major restrictions on Airbnb and other short-term rental properties, NJ’s rental scene is booming.
The policy was enacted in order to free up properties in New York City and make room for more housing. The thought is simple: allowing investors unlimited access to properties takes away homes from actual residents of the city. New York’s de facto ban on Airbnb stirred headlines late last year. The law immediately wiped out nearly 15,000 Airbnb short-term listings in the city, dropping from 22,000 units to 7,000 units in just weeks.
Some hosts switched their short-term properties to long-term rentals to work around the law, which only aimed to take down shorter rentals.
This decline in Airbnb listings has been significant enough to bolster the market for short-term rentals across the Hudson River in New Jersey. Demand for Airbnb rentals has skyrocketed in Jersey City, Hoboken and Weehawken since the decision was made. According to AirDNA—a short-term rental intelligence firm—Jersey City has seen demands rise 77 percent, while Weehawken has seen 45 percent and Hoboken 32 percent.
Back in New York, rent remains stagnant despite the Airbnb de facto ban, which lawmakers hoped would help bring down prices.
Airbnb did attempt to sue the city, but the case was ultimately dismissed. Rental owners in New York continue to fight against the change.
About the Author/s
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.
1 comment
I am glad to see the end of short term rentals in NYC. I hope NJ can fight short term rentals as well because it does make it worst for long term tenants and those looking for affordable apartments and houses. Although NYC rents are stagnant, at least they are not rising up at an exponential rate.