New York City Just Made Short-Term Rentals Nearly Impossible

Written by:

Alejandra Rodriguez

Date:

10 Apr 2026

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If you’re planning a trip to New York City, you may be surprised to find that affordable short-term rentals have all but disappeared. Hotel rates now frequently top $400 a night, and platforms like Airbnb offer only a handful of options — if any at all. This sudden scarcity is the direct result of new city regulations that have dramatically reshaped the short-term rental landscape.

In 2023, New York City enacted Local Law 18, which bans most rentals of fewer than 30 days unless the host is physically present during the guest’s stay. The law forbids booking platforms from processing reservations or payments for these unhosted short-term stays, with fines reaching up to $5,000 per violation. As a result, Airbnb listings in the city dropped by more than 80% almost immediately, eliminating thousands of budget-friendly stays and forcing many hosts to abandon the market.

However, one company found a way to keep short-term rentals available — by avoiding bookings altogether.

Local Law 18 targets the business model that made short-term rentals popular: third-party platforms that facilitate and process bookings for unoccupied apartments. Under the new rules, if you rent out your apartment while you’re away — and are not present in the unit — both you and any platform that enables the transaction are violating city law.

Sasha Ramani, board member and AI advisor at CasaVoya, a vacation rental platform founded in response to the crackdown, says the law has created a shortage of affordable accommodations. “New York City restricts new hotel construction and makes it difficult to build apartments, but tourism demand keeps rising,” Ramani says. The result is a severe lodging gap, especially during peak events.

CasaVoya’s Workaround

CasaVoya sidesteps the ban by operating strictly as an “introduction service.” Guests can browse listings, read reviews, and communicate with hosts on the site, but CasaVoya never handles payment or finalizes bookings. Instead, once a guest and host connect, all transactions occur off-platform — typically through Venmo, PayPal, or a credit card link sent directly by the host.

“We don’t take payments,” Ramani explains. “Guests and hosts connect, set up calls, and handle the transaction themselves.” Because CasaVoya never processes bookings or money, it avoids the legal definition of a booking platform and remains compliant with Local Law 18. This makes it one of the only ways to find short-term rentals in New York City today.

Who Uses CasaVoya?

CasaVoya’s hosts generally fall into two categories. The first group consists of individuals who rent out their primary residence while traveling for work — consultants, remote workers, or frequent business travelers who want to offset the cost of an empty apartment. “These hosts aren’t professional landlords,” Ramani says. “They’re simply making use of their space when they’re away.”

The second group includes artists, freelancers, and others who rely on short-term rental income to afford New York’s high cost of living. Many rent out a spare bedroom for a few days or a week at a time, rather than taking on a long-term tenant. For these hosts, short-term rentals can mean the difference between staying in the city and being priced out. Ramani notes that this group includes “the people who make New York such a desirable place to live.”

What Travelers Should Expect

For guests, using CasaVoya feels similar to other rental platforms — until it’s time to book. Guests must arrange payment directly with the host, so there’s no platform-backed payment protection or instant booking. While this adds some friction, it also eliminates platform fees, which can total 14% for guests and 3%-6% for hosts on Airbnb.

CasaVoya verifies host identities and property details, and guests can review feedback from previous stays. The company encourages video calls or phone conversations between hosts and guests before any commitment, adding a layer of trust and personal interaction. “That real human-to-human connection is going to be increasingly important,” Ramani says.

However, booking directly means travelers should take extra care: confirm payment methods, ask detailed questions, and verify property details before sending money. There is no centralized refund policy or dispute resolution if something goes wrong.

Why New York’s Market Looks Like This

New York’s strict regulations have left the city with a chronic shortage of affordable lodging. New hotel development has stalled for years, and apartment construction faces high costs and regulatory hurdles. As tourism rebounds — especially ahead of events like the 2026 World Cup — demand for places to stay continues to climb.

Short-term rentals once helped fill this gap, but most are now gone. This has driven up hotel prices and left many travelers with limited options. Ramani says, “Regulation didn’t eliminate the market for short-term stays. It just forced it to adapt.” CasaVoya’s introduction model exists because the demand for flexible, affordable accommodations hasn’t disappeared.

What to Know Before Using an Introduction-Based Platform

If you’re considering CasaVoya or a similar service, keep these points in mind:

• Clarify payment: Ask the host how payment will be handled — typically Venmo, PayPal, or credit card.
• Communicate directly: Schedule a call with the host to ask questions and gauge trustworthiness.
• Read reviews: Check feedback from prior guests to assess reliability.
• Double-check details: Confirm the property address, amenities, and house rules before paying.
• Understand the risks: There’s no platform-backed payment protection or refund policy.
• The Bottom Line

New York City’s crackdown on short-term rentals hasn’t reduced demand — it has just shifted it to less conventional platforms. For travelers seeking affordable stays and hosts needing extra income, introduction-based services like CasaVoya offer a legal — but less seamless — alternative to traditional booking sites. In a city where hotel rooms often cost $300 to $500 a night, these workarounds may be the only viable option left.

About the Expert: Sasha Ramani is a board member and AI advisor at CasaVoya, a New York City-based vacation rental introduction platform launched in response to Local Law 18. The platform connects guests and hosts but does not handle bookings or payments.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.