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Airbnb generates $30m in Queens economic activity: Report

By Tom Momberg

A new study released by Airbnb, the website that allows people to rent out their homes and other lodgings, found that roughly 42,000 people stayed in Queens in 2014 using listings they found on the site, generating about $30 million of economic activity in the borough.

The report, which was conducted by Manhattan-based HR&A Advisors, estimated Airbnb rentals to have generated about $1.15 billion in the city, but much of it was generated through illegal use.

Airbnb has been under much scrutiny by state lawmakers and Attorney General Eric Schneiderman, whose office released its own report on Airbnb listings in the city last fall. That report concluded that as many as 72 percent of listings over the past several years violated state law.

Current state laws prevent people from sharing their homes if they are not present. And it is illegal to share an apartment if it is rent-regulated, even if the lessee or building owner are present.

Airbnb does post a disclaimer for individuals listing their homes on the website, which describes New York’s multiple dwelling law, as well as laws regarding applicable taxes, rent regulation, city zoning codes and business licensing.

But the AG’s report, which gathered information from a subpoena in May 2014, found the site was being used illegally to a large degree.

Though less than 3 percent of airbnb reservations are in Queens, Airbnb touted the benefit of starting to bring tourists outside of traditional hotel districts to spend money in the city’s neighborhoods.

The state attorney general’s office could not be reached for comment on the new report.

The Airbnb report also claims that 90 percent of the city’s hosts share their primary residences, while 72 percent of them use the extra income to help pay bills.

Flushing resident Linda Landivar uses the site to host visitors at her home for just those reasons. She advocated on behalf of the rental website alongside several other New York City-based Airbnb hosts in Albany last week to influence lawmakers to change laws to work for residential users while collaborating on tougher laws restricting unlicensed hotel operators.

“Although hosting guests from around the world is something we love to do, there is another benefit Airbnb has provided — and that’s economic security for my family,” said Landivar, who along with her husband is a freelance artist with a less stable source of income.

“As a mother of two it is so important to know, even when work slows, we have a source of income that will help put food on the table and help pay the bills,” she said.

Airbnb is using its new report to advocate to the attorney general and the Legislature to fix the laws for New Yorkers like the Landivars, while at the same time helping the web rental community to pay $65 million more in city and state taxes.

Reach reporter Tom Momberg by e-mail at tmomberg@cnglocal.com or by phone at (718) 260–4573.