As in many cities around the world, people visiting New York favour a short stay in an apartment in a residential area and the chance to live ‘like a local’. Travel after the pandemic has bounced back, with events in New York City attracting travellers from all over the world. As a global business hub, NYC is also a prime destination for corporate travel.
For those visiting New York City, apartments are often more popular than hotel rooms due to the increased space and additional privacy they offer. The high demand for the short-term letting of apartments by transient guests has meant that there is more profit in this for landlords or subletting tenants than in putting the same property on the long-term rental market.
Housing pressures, concerns over health and safety, and the potential disruption in neighbourhoods where there are many short-term lets contributed to the push for regulation as the popularity of digital booking platforms for these increased. New York was one of the first cities to draw up and implement regulations. These now state that unless the owner is also present, it is illegal to rent an apartment, condo, or co-op for less than 30 days. Only if the owner is resident in the property can travellers rent out the property for as little as one day. Fines for contravening the rules are steep.
According to Pushkar Patel, Account Manager, Corporate Housing at Sonder, there is now a lack of serviced apartment availability in New York due to the new rules. When asked whether he sees more outside investment into the sector in terms of aparthotels and built-to-rent, Pushkar replies, “Yes, absolutely. There is a lot of talk of office-conversions into apartments or hotels within New York City. (There’s) still a while to go, but we could start to see schemes materialise this year.”
It is possible that in New York, as in other cities, the short-term rental market will become more professionalised as a result of the stringent rules that are in place. However, although the rules ensure minimum health and safety standards, the strict regulatory environment also reduces both the availability of accommodation for extended stays, as well as the diversity of properties that guests can access, including the ‘local stays’ that some travellers so appreciate.
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The content of this white paper and subsequent blog posts of the same content is only accurate as of the date of the white paper’s release and will constantly evolve due to the ever-changing nature of the local property market. For the most recent update please contact your Accommodation Specialist at Situ.
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