NYC sues illegal Airbnb operator, in first case arising from 2018 data sharing law

Standing before a Midtown building accused of hosting illegal short-term rentals for years, New York City Mayor Eric Adams issued a message to anyone who tries to exploit New Yorkers in need of affordable housing: “we’ll see you in court.”

City officials announced a lawsuit against the building’s operators this afternoon, pledging to ramp up efforts to crack down on the thousands of illegal short-term rentals listings on platforms like Airbnb. Opponents like Tom Cayler of the Coalition Against Illegal Hotels say there could be 30,000 illegal units active in the city right now. This was the first lawsuit to result from the 2018 law – and the 2020 settlement agreement – requiring Airbnb to share information about its hosts with the city. Adams said more lawsuits would come.

City leaders say short-term rentals – which are temporary arrangements for less than 30 days – take vital housing units from New Yorkers, drive up rental costs, are disruptive to residents and are even sometimes dangerous or unsanitary for the tourists who rent them out. While recent viral tweets and TikToks have captured the downsides of Airbnbs, the biggest critics in the city have been the Hotel Trades Council, a union close to Adams which sees them as a threat to their workers.