Report slams Airbnb in NYC for raising cost of housing

A report from critics of Airbnb says the vacation rental website is driving up rental prices and reducing housing availability in New York City. (Shutterstock)

ALBANY, N.Y.—A report from critics of Airbnb says the vacation rental website is driving up rental prices and reducing housing availability in New York City.

The analysis published Monday comes from a researcher at McGill University in Montreal and was commissioned by the Hotel Trades Council, a union of hotel workers. Several local neighbourhood organizations were co-sponsors.

The report finds that Airbnb listings have removed 7,000 housing units from circulation in the past three years and increased median rent in the city by $380 a year.

Officials have tried to combat illegal listings with fines for property owners.

Airbnb says many everyday New Yorkers use its site to temporarily rent space to make extra money. The company questioned the findings of Tuesday’s report and said the study’s methodology is flawed.