When New York City enacted Local Law 18 two years ago, lawmakers framed it as a bold step toward tackling the affordability crisis. The idea was simple: eliminate illegal short-term rentals and bring more housing units back into the long-term market. But the results have been anything but straightforward.
After the law took effect, the number of active Airbnb listings dropped drastically from nearly 22,000 to roughly 3,200, according to a City & State NY report.
A recent poll by Clarafy Research, commissioned by Airbnb, found that 81% of New Yorkers believe the city is heading in the wrong direction on housing affordability. Those figures reveal a growing sentiment among residents that the city’s approach needs serious adjustments.
Michael Blaustein, Airbnb’s policy chief, argues that while the intentions behind Local Law 18 were sound, its implementation damaged local economies and hurt the very residents it sought to protect.
“We were told this law would make housing more affordable,” he said in an interview with City & State NY. “Instead, rents have gone up, and small homeowners are struggling.”
When Reform Turns Restrictive
Local Law 18 is set to enforce the regulations for short-term rentals. It required hosts to live in the property they list, be present during guest stays, and limit occupancy to just two guests at a time.
Additionally, every host had to register with the Mayor’s Office of Special Enforcement before accepting bookings of 30 days or less.
According to Airbnb, about 75% of its hosts in New York used the platform to supplement their income and stay financially afloat. The loss of that income stream left homeowners vulnerable in an already expensive market.
The restrictions also affected tourism-dependent neighborhoods. Small business owners, from restaurants in Queens to coffee shops in Brooklyn, started experiencing the ripple effects as fewer visitors meant less spending. Blaustein pointed to economic losses “in the billions” for local communities once bustling with short-term visitors.
Across the city, many hosts and housing advocates now believe reform is long overdue. One proposal under consideration, called Intro 1107, aims to relax the most rigid parts of Local Law 18.
It would allow primary homeowners to rent out their properties while away and increase the guest cap from two to four, making it more practical for families to travel together. The new framework still prohibits speculative rentals, ensuring only permanent residents can list their homes.
The Poll That Shifted Public Opinion
Airbnb’s efforts to reshape the conversation around Local Law 18 gained momentum this year with the release of its citywide poll.
The results were striking: 80% of respondents favored reforms to the existing restrictions, while 82% of those supporting Democratic mayoral candidate Zohran Mamdani also backed the proposed changes.
The poll revealed strong support among younger voters; 83% of respondents between 18 and 44 favored revisions. The sentiment suggests that for millennials and young professionals, short-term rentals are seen not as predatory but as practical solutions in a city grappling with housing scarcity.
New York’s Airbnb (Credit: Reddit)
The data also exposed how little progress has been made toward correcting the affordability problem.
A 2023 report by the city’s Department of Housing Preservation and Development showed a startlingly low vacancy rate of just 1.4%, marking the tightest housing market since 1968. Out of 2.35 million habitable rental units, only 33,000 were vacant.
Support for reform is also expanding beyond the tech sector. The New York State Latino Restaurant Association, multiple chambers of commerce, and even chapters of the NAACP have joined Airbnb’s coalition.
These groups cite economic and community reasons for adjusting the law, emphasizing that balanced regulation can coexist with affordability goals.
Opponents, including the Hotel and Gaming Trades Council, continue to argue that easing restrictions would reopen loopholes exploited by commercial operators. Yet the new proposal includes specific wording limiting eligibility to “permanent occupants,” which its supporters say directly addresses those concerns.
A Balancing Act for City Leaders
As the New York City Council reviews Intro 1107, the debate focuses on the fundamental aspect of urban policy: how can a city promote affordable housing without hindering alternative income streams?
Advocates of reform stress that fairness and balance must guide the next phase of regulation. They don’t seek to dismantle the existing framework but to make it workable for average New Yorkers.
Allowing a homeowner to rent their space while away, supporters say, could inject some flexibility without enabling large-scale property speculators to dominate the market again.
The proposed reforms also touch on privacy and safety. Under current rules, short-term hosts are prohibited from installing locks on interior doors, a policy meant to prevent illegal hotels but criticized as unrealistic and unsafe.
The new legislation would fix this by allowing door locks while retaining the registration requirement monitored by the Office of Special Enforcement.
City officials face difficult choices. Tightening restrictions has not resolved the housing crunch, but reversing them too much risks undermining tenant stability. Policymakers must now consider evidence showing that affordability is worsening, not improving, under the current system.
Airbnb positions itself not as an adversary but as a partner in rebuilding trust between the city government and property owners. Blaustein argues that modest reforms could “keep long-time New Yorkers housed” and help small businesses recover from years of losses.
Reform or Regression?
Whether Local Law 18’s revisions go forward may depend on political timing. Housing affordability is dominating the mayoral campaign season, and reform advocates are pushing for quick City Council action.
The next few months may determine if the city maintains its tough stance or opens the door to a more flexible policy.
New York’s housing debate is, at its heart, about control, fairness, and survival. As rents rise and options shrink, homeowners and renters alike are asking whether well-meaning laws have turned into barriers.
Whether through Intro 1107 or another path forward, the demand is unmistakable: New York needs reform that reflects its residents’ reality.
For years, Mallorca’s capital, Palma, has been a magnet for sunseekers, party enthusiasts, and digital nomads. Its cobbled streets, turquoise waterfronts, and buzzing nightlife have inspired generations of travelers. Yet the city’s global popularity has come at a heavy price.
Endless streams of visitors have sparked housing shortages, rising living costs, and social tensions between locals and tourists.
This week, Palma’s mayor, Jaime Martínez Llabrés, announced one of the island’s most dramatic tourism crackdowns to date. The city is halting all new tourist rental licenses, including Airbnb-style apartments, and introducing a strict ban on party boats and new hostels.
The move, official since mid-October, marks a turning point for the Balearic hotspot, long criticized for allowing mass tourism to overshadow local quality of life.
Officials call it a bold push toward “quality and sustainable tourism.” The ban will go into effect across Palma’s entire municipal area, targeting both new and converted tourist accommodations.
Once a contract ends or a license expires, it cannot be renewed. For the first time, Palma is openly prioritizing residents’ comfort over unchecked tourist inflows.
The Decision That Shook the Island
The roots of this decision stretch back years. Local communities in Palma have voiced growing frustration about over-tourism choking the city’s identity.
Short-term rentals turned once-quiet residential streets into year-round vacation zones. Families struggled to afford housing while visitor numbers soared. Annual reports showed that some neighborhoods were at breaking point, with tourists outnumbering residents during the summer season.
Mayor Llabrés, representing the Popular Party government, stood firmly behind the reforms. Addressing the council, he called Palma’s port “essential infrastructure” but criticized the way party boats and alcohol tourism have eroded social harmony.
“Our commitment to quality, coexistence, and sustainability is being reflected in the type of visitors and the tourism offering we want for Palma,” he said.
City officials emphasize that this is not an anti-tourist move but a strategic correction. The goal is to encourage longer stays, responsible travelers, and family-oriented visits rather than short, noisy breaks.
Palma’s tourist seasonality has already cooled slightly, with official data showing a 2.01 percent drop in peaks since 2023 and a 4.57 percent decline compared to pre-pandemic 2018.
Interestingly, despite fewer tourists, spending has increased by nearly 15 percent, hinting at a growing preference for higher-end experiences over budget travel chaos.
Airbnb and the Rental Clash
Palma’s decision comes against the backdrop of a nationwide Spanish crackdown on illegal tourist rentals. Earlier this year, the Consumer Rights Ministry revealed that around 65,000 Airbnb listings failed to meet national regulations.
Many lacked proper license numbers, did not specify ownership status, or contained misleading information on occupancy limits.
Palma (Credit: Timeout)
As a result, authorities ordered thousands of noncompliant listings to be removed. Airbnb responded sharply, arguing that many of these decisions lacked “evidence of wrongdoing” and violated European Union law. The company vowed to appeal, framing the issue as a property rights dispute rather than a tourism policy matter.
Still, critics say the real issue is Spain’s housing crisis. In cities like Madrid and Barcelona, locals blame online rental platforms for inflating rents and driving residents out of central areas.
Tourism-related real estate speculation turned homes into commodities, especially post-pandemic, when remote work blurred the line between residency and leisure stays. Palma’s new policy aims to break that trend before it mirrors the extremes seen on the mainland.
Economically, some landlords will lose out, but Palma’s government insists the benefits outweigh the costs. By reducing low-cost tourist lodging and curbing party tourism, the city anticipates fewer social conflicts and greater demand for regulated hotels.
Data already shows a drop in one- to three-star hotels offset by growth in premium categories, suggesting Palma is steering toward a more selective, eco-conscious market.
Party Boats Face Their Final Season
Few island icons represent holiday excess better than the party boat. For decades, these floating clubs drew thousands of excited young travelers with unlimited drinks, pulsing music, and panoramic views of Palma Bay. Yet behind the appeal lay a wave of noise complaints, public intoxication reports, and community irritation.
Mayor Llabrés and his team have now drawn a clear line: party boats will disappear from Palma’s port. The ban, taking effect three months after its approval, will make licenses irrevocable once canceled. City officials describe the port as “vital infrastructure that must serve residents and responsible tourism.”
For local marine businesses, opinions are split. Some argue that the move protects Palma’s image and fosters eco-sensitive maritime services such as sailing tours, diving charters, and cultural cruises.
Others worry about job losses in the nightlife sector. Yet even many residents who depend on tourism income admit that the party scene has become unsustainable.
A Shift Toward Sustainable Tourism
The transformation unfolding in Palma aligns with a broader European shift toward managed tourism. Across southern Europe, cities battered by record visitor numbers are rethinking their approach. Venice has introduced entry fees.
Officials argue that these policies prompt long-term benefits. Cleaner streets, quieter nights, affordable housing, and restored community cohesion all rank high on the local agenda.
Economists predict a short-term dip in visitor numbers but a long-term boost in value-added tourism, where travelers stay longer and spend more per trip.
Spain’s national government is monitoring Palma’s strategy closely. As the tourism industry accounts for roughly 12 percent of Spain’s GDP, reforms that balance economic gain with urban sustainability could serve as a model for other coastal cities.
Locals React: Relief, Skepticism, and Hope
Among Palma’s residents, reactions vary but lean toward cautious optimism. Lucia Pérez, a long-time schoolteacher from the Santa Catalina district, described the ban as “a breath of fresh air.”
She added, “We were losing our neighborhoods to weekend visitors who treated our homes like hotels. Maybe now our children can actually afford to live here.”
Not everyone is equally convinced. Small hostel owners and bar operators fear the changes might narrow their customer base too quickly. Some believe the law should have included longer transition periods or compensatory measures for small business owners affected by reduced nightlife traffic.
Still, most agree that Palma cannot revert to the over-touristed chaos of previous summers. The city once again faces a balancing act: maintaining a robust tourist economy while preserving its cultural and residential integrity.
The immediate effect will be visible by the 2026 tourist season, when party boats vanish and Airbnb’s presence significantly shrinks. For many locals, that moment will symbolize a rebirth of Palma’s identity, from a crowded party hub to a destination defined by charm and coexistence rather than noise and excess.
