New York City’s recent crackdown on Airbnb, under Local Law 18, has drastically reduced short-term rental listings, pushing many hosts into an underground market. As a result, startups are emerging to cater to hosts and renters who still want to operate within the constraints of the new rules. Some of these companies, like Ohana and hostU, are attracting significant investments as they offer alternative platforms for rentals of 30 days or longer, which comply with the law.
The law mandates stricter registration and hosting conditions, leading many former Airbnb users to move their listings off the platform. Private groups, such as WhatsApp and niche online communities, are facilitating home-sharing under the radar. As a result, demand in this underground market is surging, with some startups reporting significant growth, poaching former Airbnb hosts and establishing new platforms that connect landlords with tenants looking for longer-term stays.
This shift has drawn attention from investors, as the new regulatory environment creates opportunities for startups to carve out a niche in compliance-based rental markets.