CRA experts Michael Salinger, Oliver Latham, Muath Masri, and Anthony Tokman prepared a report for Airbnb examining the economic impact of regulations on short-term rentals (STRs) in major US cities.
STRs have provided a competitive alternative to hotels, helping owners earn income and afford their homes. They also support local jobs and businesses and generate tax revenue for state and local governments.
While STRs offer broad benefits, increasing restrictions can severely limit these advantages. Using New York City’s Local Law 18 as a case study, the report shows how strict STR regulations can lead to higher hotel prices, reduced lodging options, and significant financial losses for hosts, local economies, and governments. The analysis estimates that in NYC alone, STR restrictions led to $197 million in lost host income, $638 million in lost business revenue, $82 million in lost taxes, and 2.6 million fewer guest nights. Similar patterns were found in Boston, New Orleans, and Philadelphia.
Read the full report here to learn more about the broader effects of STR regulations.
