Airbnb rentals illegal in NYC if occupants stay less than 30 days

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Airbnb rentals illegal in NYC if occupants stay less than 30 days

 Airbnb rentals illegal in NYC if occupants stay less than 30 days
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Highlights

  • Airbnb Inc (NASDAQ: ABNB) rentals are made illegal in most New York City buildings if lodgers stay less than 30 days.

  • The Higher Regional Court of Vienna has banned Airbnb listings in municipal buildings.

  • The ABNB stock ticked up 19.83% YTD.

Holiday rental company Airbnb Inc. braces for more troubles as regulators impose new rules. The San Francisco, California-based firm has been struggling amid numerous housing woes in the US.

New York City has banned short-term Airbnb lodgings blamed for increased rental costs. The authorities have made Airbnb rentals illegal if occupants stay less than 30 days in the city.

NYC’s decision comes after Vienna’s Higher Regional Court banned Airbnb listings in municipal buildings. It is a major setback for Airbnb, which provides homestays for vacation rentals and other tourism activities through its online platform.

Experts have blamed companies like Airbnb for the shortage of properties for long-term housing. According to them, the short-term rentals (STRs) may have contributed to the significant drop in the number of available houses for a long-term stay while pushing higher rents and house prices.

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Did rental companies push rents higher?

Various studies have shown that about 20% of the average annual increase in US rents is caused by Airbnb alone, forcing policymakers to take an immediate approach to control the STRs.

Airbnb has spent a significant amount of time in the New York City courtrooms and the council chambers to override the cap of the 30-day rental period.

However, in June 2020, when Airbnb was preparing for its public market debut, the firm had settled a lawsuit against the city, agreeing to provide its data to officials. Furthermore, after the Vienna court order, the city-owned apartments are no longer listed on platforms like Airbnb.

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Airbnb (ABNB) ruled illegal in New York

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Airbnb, Inc’s (NASDAQ: ABNB) Stock Performance and Financial Highlights

The Airbnb stocks were priced at US$166.79 at 8:26 am ET on December 6, up 0.02% from its closing price of December 3. Its stock value grew 19.83% YTD.

The firm has a market cap of US$99.44 billion, with a forward P/E one year of 416.88. Its EPS is US$-12.08. The ABNB stock saw the highest price of US$219.94 and the lowest price of US$121.50 in the last 52-week. Its trading volume on December 3 was 6,460,855.

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Its bookings surged 29% YoY to 79.7 million nights in Q3, FY21. Its revenue came in at US$2.24 billion, an increase of 67% YoY, while its net income jumped 280% YoY to US$834 million in Q3, FY21.

For the fourth quarter of fiscal 2021, the firm expects its revenue to be between US$1.39 billion and US$1.48 billion.

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Airbnb rentals illegal in NYC if occupants stay less than 30 days

 

Bottomline

Travel-related firms are expected to maintain steady growth in the coming quarters. Experts also forecast continued growth for ABNB despite its challenges. Meanwhile, the Dow Jones US Travel & Tourism index plunged 8.91% YTD while decreasing 11.31% QTD.

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