New Analysis: New York City’s Short-Term Rental Law Prioritizes Homeowners
New York City’s Short-Term Rental Law Prioritizes Homeowners over Corporate Investors, new analysis shows
New York City, NY — July 23, 2026
After years of advocacy from housing and labor organizations to address the widespread illegal use of housing for short-term vacation rentals, in 2023 New York City implemented a licensing system to better enforce long-standing regulations. Industry lobbyists are calling to weaken the law, arguing that it will benefit struggling homeowners. A new policy brief by Pratt Center for Community Development, however, finds that the city’s Short-Term Rental Registration Law (Local Law 18 of 2022) primarily benefits homeowners in low- and moderate-income areas while helping to protect long-term housing and residents from persistent investor speculation.
Key findings include:
The majority (63%) of licensed short-term rentals are in one- and two-family homes in outer-borough neighborhoods. Prior to the registration system, hosts with multiple listings and near central Manhattan dominated the short-term rental market.
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The booking platform rental market shows risks of investor speculation, even with regulations.
Short-term rentals are associated with home flipping and higher sale prices compared to other small homes.
“Mid-term” rental listings of 30 days or more—which are not subject to current short-term rental regulations—are growing among professional investors. Investors have shifted from short-term rentals to the less-regulated mid-term rentals of a month or more, and may be well-poised to return to the short-term rental market if regulations were weakened.
Recommendations are to:
Maintain the existing Short-Term Rental Registration Law, which data shows is prioritizing short-term rental listings from individual owners of one- and two-family homes over investors. The city should also examine the mid-term rental market, its impact on long-term housing supply, and potential regulatory approaches.
Advance policy and programs to advance the affordability of small homes and mitigate displacement risk, such as foreclosure prevention, expanding access to capital for low- and moderate-income homeowners, and addressing rising utility costs.
This research was conducted in collaboration with Neighbors Not Profits, a coalition of housing, labor, and community organizations that advocates to maintain existing short-term rental laws and regulations in New York City and for housing affordability.
“Our analysis shows that the short-term rental market is now centered around homeowners in outer-borough neighborhoods of color who, under the city’s enforcement system, are no longer competing with professional investors illegally converting Manhattan apartments to hotels,” said Sylvia Morse, Director of Research & Policy at Pratt Center for Community Development. “As homeowners and tenants in these neighborhoods face growing investor speculation and displacement risk, the City must maintain its short-term rental registration system and advance policies for the affordability of small homes.”
"When we fought for Local Law 18, we did it because every home turned into an illegal hotel meant one less home for a New Yorker. Pratt Center's report shows that the law is doing what it was designed to do. It is protecting housing from speculative investors while supporting homeowners who live in their communities. That's why TenantsPAC is proud to be part of Neighbors Not Profits and to continue working alongside tenants, homeowners, and community organizations to protect New York's housing stock," said Esteban Girón, Political Director of TenantsPAC, a member of the Neighbors Not Profits coalition.
"Strong neighborhoods depend on people being able to stay in their homes, whether they're tenants or homeowners. We're grateful to Pratt Center for producing research that confirms what communities have been experiencing for years: when housing is treated as an investment vehicle instead of a place to live, everyone loses,” said Darius Gordon, Executive Director of Met Council on Housing, a member of the Neighbors Not Profits coalition. “This report makes clear that New York's short-term rental law is helping everyday homeowners while preventing the speculative practices that fuel displacement and rising housing costs. Protecting our housing stock means protecting the people who call these neighborhoods home, and Met Council on Housing is proud to stand alongside our partners in Neighbors Not Profits in defending policies that put people before profits."
“Pratt Center’s policy brief on short-term rentals confirms a key aspect of our advocacy on behalf of Neighbors Not Profits over the past two years: short-term rental regulations improve affordability across the board,” said Rob Solano, Executive Director and Co-Founder of Churches United for Fair Housing (CUFFH), a member of the Neighbors Not Profits coalition. “This research is crucial to the preservation of policy tools like Local Law 18, protecting affordability for both tenants and small homeowners who would otherwise be at risk of corporate-driven displacement.”
"In the midst of an affordable housing crisis, we cannot afford to loosen restrictions on our city's short-term rental law," said Ramina Davidson, Executive Director of Communities Resist, a member of the Neighbors Not Profits coalition. "Pratt Center's report confirms that Local Law 18 helps protect our communities, and that rollbacks would only increase displacement in the areas we serve. We applaud the Pratt Center for releasing this critical report. We look forward to continuing to partner with our neighbors to fight back against corporate takeover."
“New York City won’t solve its housing crisis if we keep losing long-term housing to the short-term tourist market,” said Charlie Dulik, Director of Organizing at Housing Conservation Coordinators. “This report shows that our new regulations work, preserving our long-term housing supply while benefitting homeowners, not speculators.”
Read the policy brief, “NYC's Short-Term Rental Law Benefits Homeowners over Investors,” at: prattcenter.net/short-term-rentals
About Pratt Center for Community Development
Pratt Center for Community Development works to build community power and ensure the equitable distribution of resources for low-income BIPOC people in New York City. We do this by partnering with frontline community organizations to provide research, participatory planning, policy advocacy, and implementation support. Learn more at prattcenter.net.
About Neighbors Not Profits
Neighbors Not Profits is a coalition of housing, labor, and community advocates fighting against profit-driven displacement and for truly affordable housing in New York City. Its members include Churches United for Fair Housing (CUFFH), Legal Aid Society, Make the Road NY, Housing Conservation Coordinators, Met Council on Housing, Communities Resist, TenantsPac, Hotel Trades Council, and other organizations including neighborhood associations, faith institutions, tenant unions, legal aid organizations, and community groups from across the five boroughs. Learn more about the coalition and its members at neighborsnotprofits.org.