Late last year, New York City made headlines when it all but banned Airbnbs and other short-term rentals within city limits. In August of 2023, Airbnb had more than 25,000 short-term rentals listed in New York City. Tenant groups across the city accused short-term rental platforms of hollowing out neighborhoods and causing already-high rents to grow even higher.

“You would see tourists on the streets in neighborhoods where there weren’t any hotels,” recalls New York-based artist and activist Murray Cox. The sound of rolling suitcases could be heard at all hours. Once tight-knit communities began to feel lifeless. When Cox ran the numbers on his own neighborhood — Bed-Stuy in Brooklyn — he found about 1,000 listings. Cox also heard horror stories from other parts of the city. “People would move into a building and then find that the building was full of tourists day in and day out,” he says. “In some cases, they would be so uncomfortable they’d feel forced to leave.”  

So, in September of 2023, New York City decided to do something about it. A series of bold requirements capped the total number of short-term rentals (STRs) and limited guests to just two at a time. They required STR operators to be primary homeowners — and to be present in the home while hosting. The city also promised to enforce those requirements, a move that would wipe out nearly 90 percent of active listings at the time.

Though it may sound revolutionary, New York’s crackdown isn’t the first of its kind. In fact, it’s part of a growing trend — one largely spearheaded by much smaller towns. Over the last decade, communities from Irvine, California, to Durango, Colorado, have implemented clever regulations, taxes and zoning policies to hobble the STR market — or, in some cases, eliminate it altogether. As the success stories pile up, a growing body of research points to the dramatic positive impacts of policies like these, including lower rents, more equitable housing markets and the promise of a sustainable tourism economy. 

When Airbnb was founded more than a decade ago, it was heralded as the harbinger of a new sharing economy. In theory, home-sharing platforms — including Airbnb, Couchsurfing, VRBO, FlipKey and Homestay — would put underutilized bedrooms to use, matching budget-conscious travelers with locals in need of a little extra cash. The system would funnel tourism dollars into small towns in a more equitable way. It seemed like a win-win. But within a few years, one clear loser emerged: communities. 

“It didn’t take very long for people to realize the sharing economy was basically a scam,” explains Cox, who later went on to found data-sharing platform Inside Airbnb. “People weren’t using that car that was sitting in the driveway to drive Uber. And people weren’t just renting out a sofa or a spare bedroom.” Instead, people saw an economic opportunity they could invest in. And they started buying whole homes to rent out on Airbnb. 

In many cases, speculators and investment companies were buying multiple homes expressly for short-term rental use. According to an analysis Cox performed in 2022, about two-thirds of Airbnb rentals in the US are in a property portfolio, which means the host owns and rents more than one property. At the time, he found nearly 23 percent of Airbnb hosts had two or more entire homes or apartments listed on the site. That made up 607,085 listings — or 63 percent of entire-home listings. And the top one percent of operators have more than 300,000 Airbnb listings among them — a stat that points to huge conglomerates gobbling up the market.  

These days, Airbnb isn’t just a way to share underutilized bedrooms; it’s big business.

Right now, about 90 percent of Airbnbs in Bozeman, Montana, and Nashville, Tennessee — both popular vacation spots — are whole homes. Both Bozeman and Nashville are also relatively small towns with exploding local populations and limited housing stock. That means that every home set aside for a year-round STR listing is a home unavailable to local residents struggling to find — and afford — housing. In extreme cases, the STR explosion has been a contributing factor in forcing longtime locals to move away. The so-called “Airbnb Effect” can hollow out once-vibrant communities. 

This effect is most visible in popular vacation hot spots. In Hawaii, for example, out-of-towners have bought up so many homes that few are left for Native Hawaiians.  

“On Maui alone, 52 percent of homes are sold to nonresidents, and 60 percent of condos and apartments have gone to investors and second homeowners,” writes Stanford researcher Noah Jordan Magbual in a recent report. “The once indigenous population of the Hawaiian archipelago are now outcasts in their own home.” 

The Airbnb Effect also impacts bigger urban areas. In 2015, one study found that STRs had sucked at least 10 percent of New York’s available housing off the market. Another New York study showed that this reduction in supply led to rent increases of up to hundreds of dollars per year. In Barcelona, the effect is even more severe, with rents rising by seven percent and housing costs rising by up to 17 percent in popular neighborhoods. 

For some cities, the proliferation of STRs has become more than just an economic issue; it’s existential. That’s especially true in New Orleans, the longtime home of Jeffrey Goodman, an urban planner and consultant who specializes in STRs. 

KANSAS CITY, Kan. (AP) — Kyle Larson began what will become a busy month of May on a small dirt track nestled in a crook of the Missouri River, where he started outside of the top 10 in his sprint car Friday night and managed to climb to third place by the finish.

By the end of the month, Larson hopes to have made some history.

The 2021 NASCAR Cup Series champion is trying to join Tony Stewart as the only drivers ever to complete “the double,” finishing every lap of the Indianapolis 500 and Coca-Cola 600 on the same day. Several have tried over the years, most recently Kurt Busch in 2014, but the task has proven to be among the most grueling in all of motorsports.

“I mean, for sure I’m excited,” Larson said Saturday, shortly before hopping into his No. 5 for Hendrick Motorsports and qualifying for the Cup Series race at Kansas Speedway. “I’m not like, overly anxious at the same time. I think I’ve known it’s been coming for a couple of years now, and just, you’ve got to be ready to get out there and get going.”

Larson also said he’s not thinking about Memorial Day weekend quite yet.

There is a lot more racing to do first.

He was running his sprint car again Saturday night at nearby Lakeside Speedway, then will try to improve on his finish Sunday from a year ago at Kansas, where Denny Hamlin bumped him out of the way on the last lap to snatch victory.

Larson also has NASCAR’s throwback weekend coming up at Darlington, and another sprint car race at Kokomo Speedway in Indiana on May 13, the night before he steps into his Arrow McLaren ride to practice for the Indy 500.

“It’s starting to set in what’s coming ahead,” Larson admitted. “You’ve got to do rookie orientation for the first time and you get there, and that was the first moment of like, ‘Holy (expletive), I’m actually in an IndyCar right now.’ But I think since then, you know, I’m kind of just more ready to finally get going.”

Larson already has a Cup Series win from Las Vegas in March, and he has a series-leading five top-fives, including a second-place run at Dover last weekend. He has led at least one lap in eight races and his 570 laps led are 35 more than any other driver.

That consistency has helped Hendrick Motorsports join Joe Gibbs Racing in dominating the Cup Series this season. Hendrick has five wins and Hamlin gave Gibbs its fourth last week at Dover, and it’s hard to believe the two power teams won’t be at the front again on Sunday; they are tied for the most wins at the track with eight apiece.

Hamlin is certainly looking forward to another duel.

Especially if it goes the way the spring race did at Kansas a year ago.

“It was a fierce battle,” he recalled. “We were the best two guys. He got out to a lead there and I remember just chasing him down there toward the end, when he was getting loose. But it’s so race to race. I can’t go back. We have a different car, new tire coming into this race. There’s not much I can put together other than how can I attack this track to get speed?”

CHARTER CHATTER

Hamlin, who co-owns 23XI Racing along with Michael Jordan, lamented the state of charter negotiations Saturday. Charters provide guaranteed starting spots and other financial benefits to their owners, but are due to expire after 2024. Owners want them to become permanent, so they can more easily attract long-term sponsors and investors. They also want more revenue, a bigger voice in NASCAR decisions and a share of new business opportunities, such as gambling revenue.

“Why is this such an important thing?” Hamlin asked. “We’ve had 11 teams go out of business since 2016. That’s not good. And certainly if we continue on the trend of a couple stakeholders doing really well and others not, that will continue.”

BACK IN THE SADDLE

Jimmie Johnson will be driving the No. 84 car for Legacy Motor Club for the second straight week as part of his abbreviated Cup Series schedule. The three-time Kansas winner finished 28th at the Daytona 500, 29th at Texas and 28th last week at Dover.

“This year has been more challenging for us in a lot more ways that we anticipated,” Johnson admitted, “but I do think we’re getting closer to a consistent pace that we hope to have week-in and week-out.”

FORD’S FOCUS

The season has so far been dominated by Chevrolet and Toyota, leaving Ford still looking for its first Cup Series win. But its cars were fast at Talladega, and Noah Gragson and Ryan Blaney finished sixth and seventh last week at Dover.

“Right now our program, I feel — if we were an 18th-place team last year, I think we’re closer to a 10th-place team,” said Gragson’s crew chief, Drew Blickensderfer. “And 10th-place teams can win races.”

ODDS AND ENDS

Hamlin is the 9-2 favorite, according to BetMGM Sportsbook. Larson and William Byron are next at 5-1. … Ricky Stenhouse Jr. signed a multiyear extension this week to continue driving the No. 47 for JTG Daugherty Racing. … Corey Heim is driving the No. 43 again in place of Erik Jones, who was cleared to return by NASCAR, but is sitting out one more week as he recovers from a crash at Talladega. Jones sustained a compression fracture in his back in the wreck.

TONIGHT

Expect a mostly cloudy evening with a chance of isolated showers and thunderstorms before midnight, cooling down to a low around 63°F. Winds from the north-northeast around 7 mph keep things breezy enough to whisk some of the clouds away.

TOMORROW

Indianapolis will see isolated showers amidst partly to mostly cloudy skies, with a high near 76°F. The south-southwest winds at 13 to 18 mph might just add an extra sway to your outdoor decorations. Celebrate Cinco de Mayo responsibly as the skies might sprinkle a little.

TOMORROW NIGHT

As the festivities wind down, so does the chance of rain, dropping to 30%. Expect mostly cloudy skies with a low around 66°F. The south wind at 6 to 8 mph will continue to provide a gentle reminder of the passing day.

MONDAY

Start the week with your umbrellas at hand! Showers are likely, with a chance of thunderstorms in the afternoon. The day will be mostly cloudy with a high near 73°F and south-southwest winds at 15 to 25 mph, increasing the likelihood of a wet commute.

MONDAY NIGHT

The showers persist into the night, mainly before 2 AM, followed by a possible thunderstorm. It’ll be mostly cloudy with lows dipping to around 58°F. South-southwest winds at 8 to 13 mph bring a persistent dampness into the night.

TUESDAY

A tempestuous day with showers and thunderstorms likely throughout the day. The high will reach up to 80°F, accompanied by gusty south winds at 15 to 30 mph. A great day to keep the rain gear handy, as these storms could bring about significant rainfall.

TUESDAY NIGHT

The unsettled weather continues with a 60% chance of early night showers before clearing up. Expect partly cloudy skies and a low around 63°F. Winds will shift slightly to the northwest at around 7 mph.

WEDNESDAY

The heart of the week brings a high near 84°F under partly sunny skies, a perfect setup for those planning midweek outings. Southwest winds at 9 to 11 mph will add to the pleasant conditions, despite the 50% chance of thunderstorms later in the day.

WEDNESDAY NIGHT

Partly cloudy with a slight chill as the low drops to around 64°F. South winds continue at about 10 mph, keeping the air fresh and the night alive.

8 DAY FORECAST

Looking ahead, Thursday offers a chance of showers with highs in the mid-70s. Friday will see isolated showers but cooler, with a high near 68°F. The weekend appears dry with highs in the mid to upper 60s, setting the stage for a calm and pleasant weekend.