Yahoo Finance Airbnb Defacto Ban in NYC Spurs ‘Staggering’ Gains in New Jersey
When it comes to Airbnb’s decline in New York City because of a defacto ban, two nearby cities – Newark and Jersey City – are taking advantage.
Under the heading, New York’s Loss Is New Jersey’s Gain, an AirDNA blog post this week on December short-term rental demand found: “Turning to our top 50 markets, the effect of the New York regulations is staggering. New York easily takes the lowest demand growth with an astounding -46.1%. Nearby Jersey City/Newark, which can serve as an alternative accommodation destination for those visiting the Big Apple, became NYC’s mirror image with the highest demand growth at 53.7%.”
Airbnb in NYC Versus New Jersey
In other words, short-term rental demand growth in New York City, where Airbnb was the dominant provider, fell 46.1% in December 2023 versus a year earlier, according to AirDNA.
And in New Jersey’s two most populous cities, Newark (#1) and Jersey City (#2), both within an easy mass transit ride from New York City, short-term rental demand grew by more than half.
Last September, New York City implemented tough rules that limited stays under 30 days to those where the registered host was present during the stay. At the time, Skift reported that New Jersey could benefit: “One week after the city implemented tough host registration requirements, you can expect to see listings that violate the rules, more hotels, and stays in New Jersey.”
As of January 15, New York City’s Office of Special Enforcement approved only 1,211 host applications, a sliver of Airbnb’s former footprint in the city.
AirDNA’s Estimates on the Change in Short-Term Rental Demand
The following chart from the short-term rental analytics and tech firm found that no other cities came near the demand jump in Newark/Jersey City. The two closest were Myrtle Beach, South Carolina (a 19.9% jump), San Antonio, Texas (up 16.6%), and Miami (a 16.3% increase), AirDNA found.
Airbnb declined to comment on the NYC versus New Jersey demand impact.
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