Rental Law Sparked 137% Surge in NYC Housing Costs
New York City renters and travelers face higher costs following a significant reduction in short-term rental options.
Updated on Oct. 14, 2026 in Apartments
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A recent study of New York Local Law 18 shows that the city's short-term rental supply has dropped 80 percent below original projections. As a result, approximately 76.5 percent of pre-law listings have vanished from platforms like Airbnb.
Why it matters
The enforcement of strict short-term rental regulations has constrained housing supply, driving up asking prices by 137 percent compared to similar U.S. markets. This shift complicates budget planning for both city residents seeking rentals and travelers looking for temporary stays.
A study of New York rental law shows average asking prices climbed 137 percent relative to comparable markets. While 76.5 percent of 31,198 pre-law listings were removed from Airbnb, individual listings tracked showed a 15 percent price increase.
The players
iGMS
A property management software company that tracks rental market data and conducted the study.
Airbnb
A global platform for short-term vacation rentals and home-stays that saw a significant drop in New York listings.
The details
Local Law 18 has effectively restricted the short-term rental market, forcing a shift in how properties are managed. Many hosts transitioned their units to stays of 30 nights or more, while others exited the market entirely, leading to an 81 percent loss of listings in Manhattan. The reduction in supply has created upward pressure on prices, as the remaining inventory faces less competition from casual short-term options.
Timeline
May 2026 marked the end of the data collection period for the study.
Money Landscape
The study of New York Local Law 18 establishes a benchmark for evaluating restricted rental markets in major cities. This data updates the current understanding of how municipal regulations alter local inventory compared to national market trends.
Travelers and renters should anticipate higher price points for stays in New York City due to the diminished supply of short-term units. Before booking, compare rates across platforms and consult with a financial professional if these shifts significantly impact your travel or housing budget.
The takeaway
The scarcity of short-term rental inventory in New York has fundamentally altered the city's pricing structure. Households should review their recurring travel and rental budget lines to account for the current 137 percent premium relative to similar U.S. markets.
Further reading
For more on market trends, visit New York City Apartments.
More information
View the complete study of New York rental law to understand the methodology and full findings.
Live Poll
Should local governments restrict short-term vacation rentals to preserve long-term housing options in your community?
