Airbnb, New York effect also in Europe?
On September 5, the new rules wanted by the city of New York to limit the spread of short-term rentals with Airbnb went into effect. The case of the Big Apple could also push the awaited EU legislation to regulate the short-term rental market into the calendar. The point of the Agi agency
After weeks of intense controversy, a new “local law” officially went into effect in New York yesterday, September 5, requiring landlords and renters to register with city authorities before they can list on Airbnb, Vrbo, or other 'hit and run' tourist rental platforms, under penalty of being fined up to a maximum of 5 thousand dollars for each infringement committed.
In short, in the Big Apple, the far-west of short-term rentals, according to industry insiders, is on number of days.
WHAT THE NEW NEW YORK LAW PROVIDES
The contested measure requires New Yorkers planning to rent an apartment first submit their applications to the Mayor's Office and certify that their property complies with applicable regulations. Furthermore, they will not be able to rent for periods of less than 30 days without being physically present in the structure for the entire duration of the stay.
THE POSITION OF AIRBNB: VICTIM OF A "UN DE FACTO CALL" IN NEW YORK
It is no coincidence that Airbnb, feeling primarily the victim of the "stricter provisions", did not hesitate to define the new law – according to the New York Times – "a de facto ban" of its platform.
THE FALLS ACCORDING TO THE EXPERTS
Industry experts, always reports the New York Times, estimate that the list of advertisements will shrink by about 10,000 ads, just in the Big Apple.
Already starting from 2024, it will be the many aspiring tenants residing in New York who will be celebrating, who will benefit from a market presumably richer in offers and more affordable rents.
The newspaper has no doubts on the matter: the Big Apple's decision, "is the latest development, potentially the most important, of the feud that has been pitting big cities against home-sharing companies for years", in the wake of the proliferation of platforms for 'hit and run'. A business which, on the one hand, has dramatically inflated rental prices (not only in New York), and on the other has contributed to fueling the housing shortage in the metropolis.
BOOMERANG EFFECT IN EUROPE?
The impact of home-sharing platforms on the tourism and real estate market has been equally disruptive in Europe, where sector operators now fear an accelerated introduction of similar initiatives. Paris, for example, was among the very first capitals to study, already in 2020, a strict regulation for short-term tourist rentals, considered the main culprits for the surge in rental prices. In the face of the pandemic, Matignon decided to stall but now, she might be more inclined to think again.
THE MOVES OF BARCELONA AND AMSTERDAM
In Europe, the cities of Barcelona and Amsterdam have been introducing rules and restrictions on short-term rentals for the longest time. However, neither of them recorded significant reductions in long-term rents.
THE PROPOSAL OF THE ITALIAN TOURISM MINISTRY
Also in Italy, a bill has been proposed by the Ministry of Tourism to regulate this sector, establishing limits (such as the 'minimum stay' of two nights in municipalities with a high tourist density) and sanctions for those who carry out this activity without the 'code national identifier'. After the first draft, two working tables had been opened, one with entrepreneurs and one with the municipalities. From May to today, however, progress has been made and the legislative decree is still in the 'draft' phase.
WHAT WE STUDY IN BRUSSELS
Last but not least, the European Union has also been working since last December on a provision to regulate the short-term rental market in the Old Continent in a clear, coherent and harmonized way. There is a battery of simple rules in the works, easy to follow for all European hosts, aimed at protecting tourists but also at increasing the transparency of the entire sector often accused of receiving 'black' income and fueling evasion.
The case of New York could also push the awaited EU legislation on the calendar, which last July was still in the negotiation phase between the European Parliament and the European Commission.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/airbnb-effetto-new-york-anche-in-europa/ on Wed, 06 Sep 2023 14:05:02 +0000.