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.” New York City’s crackdown on Airbnbs is part of a growing trend. Credit: Matthew Rutledge / Flickr
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.
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“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. In September of 2023, New York City enacted bold requirements that capped the total number of short-term rentals and limited guests to just two at a time. Credit: RightFramePhotoVideo / Shutterstock
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.
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“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.
A development study is underway at the east-side mall, which has changed hands and lost dozens of retail stores since its heyday.
It’s May, which means it’s destined to be a busy month at the racetrack. But if you’re looking for other ways to spend your time, look no further than some of the newest shops in the Circle City.
A specialty snack shop opened last month in Carmel, and a new Fountain Square spot is selling vintage and alternative clothes.
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Here are four new places to go around the metro area.
What’s opened recently around Indianapolis
Retrograde
1114 Prospect St., retrogradeindy.com, opened April 4
Retrograde, a retail and consignment shop, opened last month on Fountain Square’s main commercial strip. According to the store’s website, Retrograde features punk, rock, emo, alternative and vintage styles with an emphasis on sustainable clothing.
Open Thursday noon to 8 p.m.; Friday noon to 10 p.m.; Saturday noon to 8 p.m.; and Sunday noon to 6 p.m.
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Flavor Bridge
846 S Rangeline Rd, Carmel, opened mid-April
Flavor Bridge, a specialty, build-your-own-bag snack shop, opened in Carmel last month at the City Center. Customers can fill a bag up and pay based on weight or can choose from a gift box with a flat rate. The store will also host monthly events, special holiday themes and limited-edition snack drops.
Open Monday to Thursday 10 a.m. to 8 p.m.; Friday and Saturday 10 a.m. to 9 p.m.; and Sunday noon to 8 p.m.
Nutopia
9538 126th St, Fishers, 317-288-4468, opened mid-March
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A nut store recently opened in Fishers on 126th Street. Despite its name, Nutopia offers more than a wide selection of salty snacks. The cafe also serves coffee, matcha drinks and sweets, along with imported treats from the Middle East.
Open Sunday to Thursday 10 a.m. to 11 p.m.; Friday and Saturday 10 a.m. to 1 a.m.
Avelure Med Spa
8487 Union Chapel Rd Suite 620, aveluremedspa.com, opened earlier this year
Avelure, a medical spa, opened at Keystone at the Crossing. It’s the second Avelure location in the Indianapolis area, joining a store in Greenwood. The spa offers Botox treatments, laser hair removal, facials and other services.
Appointments available. Open Monday to Friday 9 a.m. to 6 p.m.
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See a store opening or closing in your neighborhood? Contact IndyStar reporter Alysa Guffey at alysa.guffey@indystar.com.
INDIANAPOLIS (WISH) — A person was shot Sunday afternoon at a gas station along East Washington Street in Indianapolis, police said.
Medics and Indianapolis Metropolitan Police Department were called about 5:10 p.m. Sunday to a report of a person shot and an unsafe gunshot scene at 4415 E. Washington St. That’s the address of a Citgo gas station located a few blocks west of Emerson Avenue.
The person shot was stable, awake and breathing, IMPD said in a media notification. IMPD did not plan to provide any more information from the crime scene on Sunday.
No additional information was immediately available, including whether the area was safe or if a suspect was in custody or being sought.
Multiple Fatal Shootings Rock Indianapolis in Overnight Violence
INDIANAPOLIS — A series of overnight shootings across Indianapolis left at least two people dead and several others injured, capping a violent stretch that kept police and emergency crews moving from scene to scene late Saturday into early Sunday.
Officers with the Indianapolis Metropolitan Police Department were dispatched to multiple locations across the city over a span of several hours. Each call involved reports of gunfire, and in several cases, victims were found suffering from gunshot wounds when officers arrived.
On the near north side, police discovered a victim who had been shot. Medics attempted life saving measures at the scene, but the individual was pronounced dead. Authorities have not released the victim’s identity as they work to notify family members.
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A second deadly shooting unfolded on the west side of the city. In that case, officers again arrived to find a victim in critical condition. The individual was transported for medical care but later died from their injuries. Investigators have not disclosed what led up to the shooting.
Beyond the two fatalities, several other people were wounded in separate incidents across Indianapolis during the same time period. Some victims were taken to area hospitals in stable condition, while others suffered more serious injuries. Police have not confirmed an exact total of those hurt, but officials described the number of incidents as significant for a single night.
Detectives believe the shootings occurred in different areas and under separate circumstances. At this stage, there is no clear indication that the incidents are connected, though investigators are continuing to examine any possible links. Crime scene technicians worked through the night collecting evidence, while detectives began interviewing witnesses and reviewing any available surveillance footage.
No arrests have been announced in connection with the shootings. Police are asking anyone with information to contact authorities, stressing that tips from the public can play a critical role in identifying those responsible.
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The wave of violence comes as Indianapolis continues to confront ongoing concerns about gun violence, particularly during weekend hours when multiple incidents often occur within a short period of time. City leaders and community leaders have repeatedly emphasized the need for conflict resolution, responsible gun ownership, and stronger community engagement to help reduce these incidents.
As the investigations continue, families are left mourning loved ones while police work to determine what sparked the deadly encounters and who may be responsible.
