"Tourists Blamed for Soaring Housing Prices"... New York and Florence Regulate Airbnb

Side Effects of Rising House Prices Due to Short-Term Housing Rentals

Provinces overwhelmed by incoming tourists have taken decisive action against accommodation-sharing companies such as Airbnb. New York City in the United States has implemented regulations on accommodation sharing, while Florence in Italy has decided to ban new short-term home rentals. Airbnb immediately pushed back.

On the 1st (local time), The New York Times (NYT) reported that New York's accommodation-sharing regulation law will take effect starting July. The core of the law requires New York residents who rent out their primary residence for less than 30 days to mandatorily report the landlord's personal information, rental income, and account details. Additionally, tourism taxes, sales taxes, and hotel taxes will be imposed on short-term rental income.

In response, Airbnb filed a lawsuit claiming that New York's accommodation-sharing regulation law is excessively restrictive and conflicts with federal laws, which are superior.

New York is suffering from a housing shortage due to excessive tourism. Residents of New York have expressed dissatisfaction, stating that landlords who earn higher profits from accommodation sharing have stopped renting out their properties or raised rents, ultimately causing affordable housing to disappear.

Florence, a representative tourist city in Italy, has outright banned new short-term home rentals within its historic district, according to local media. Existing short-term rental homes currently in use will remain, but it will no longer be possible to convert new homes into tourist accommodations.

Photo by Pixabay [Image source=Pixabay]

Florence attracts an average of about 15 million tourists annually, but like New York, it has suffered side effects such as skyrocketing housing prices as homeowners entered the lucrative short-term rental business targeting tourists.

Although Florence generates enormous tourism revenue, it is simultaneously facing issues related to the quality of life for its citizens. It is estimated that there are about 8,000 tourist rental homes like Airbnb within the historic district of Florence alone.

With the decrease in housing supply, monthly rents have soared to unprecedented levels. Shocking statistics have emerged showing that residents in Florence spend 72% of their salaries on monthly rent alone.

Dario Nardella, the mayor of Florence, said, "We know this is a bold measure, but we could not just sit back and watch."

Mayor Nardella added, "We will exempt property taxes for three years for homeowners who give up short-term rentals for tourists in favor of long-term rentals."