A move by NYC is making Airbnb rentals explode in New Jersey

Some New Jersey markets have seen a boost in Airbnb bookings due to a relatively new law in New York City that places major restrictions on short-term rentals.

With the rules that took effect in September, bookings under 30 days are only allowed in New York City if the owner of the property is present during the stay. And a short-term stay has a maximum guest count of two people.

Nathan Rotman, Airbnb's regional lead for U.S./Northeast and Canada, said New York City's rules for short-term stays are among the most restrictive in the world.

With demand shifting, he said, hotel prices in Manhattan and other parts of the city have shot up, so more people are looking to lodge in areas of New Jersey that are in close proximity to the Big Apple.

"We've seen an increase in bookings across the river, in New Jersey," Rotman said. "Whether it's Newark, Jersey City, places close by."

According to AirDNA, year-over-year demand for short-term stays has risen by more than 53% in Newark and Jersey City. Demand in New York City fell by 46% over the same time.

But the Garden State hasn't recorded a big jump in the number of listings in the face of growing demand, according to Airbnb. Some towns in New Jersey prohibit short-term rentals.

New figures suggest that Airbnb guest travel in New Jersey has been responsible for over $1 billion in direct and indirect economic contributions to the state.

In 2023, the platform collected and remitted approximately $41 million in tourism taxes in New Jersey alone.

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