Airbnb’s response was quick. On August 7, New York City Hall signed an order requiring the Californian group to communicate to the city all the data concerning its guests in the megalopolis of the “Big Apple”.
In response, the rental platform filed a complaint against New York City on Friday, deeming the decree unconstitutional. “The ordinance constitutes an illegal circumvention of established restrictions on government action and violates fundamental constitutional rights,” the California group said in a text filed in New York court.
The municipal decree, which should take effect in a little more than 5 months, should allow the city to fight against the shortage of affordable housing. Indeed, the very recurring short-term rentals on the platform, because more profitable for their hosts, automatically increase the city’s rents.
Dialogue failed
By having detailed information on the nature of the hosts, New York City will be able to enforce the ban on renting accommodation for less than 30 days more effectively, unless the host himself is present.
While it favored dialogue at the beginning of August when the decree was signed, the Californian company has probably not succeeded in reaching an agreement. With this new regulation, Airbnb risks losing several million dollars, New York being one of its most popular cities.
“The New York City Council is a wholly owned subsidiary of the hotel industry, and they are not interested in working together,” said Chris Lehane, head of global policy at Airbnb.
Along with New York, there are now more than a dozen major cities around the world that are adopting regulations to regulate the activities of the Californian platform. In Paris, the services of the town hall have imposed a fine of 1.38 million euros since the beginning of the year, against irregular guests.
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