NYCs Airbnb crackdown has sparked an underground market for home shares and these startups are looking to cash in

A year-old clampdown on Airbnb in New York City has created an exploding underground market for apartment rentals — and a handful of scrappy startups are attracting big-name investors as they look to grab listings that comply with the city’s new rules.Last fall, the New York City Council imposed Local Law 18 — stiff regulations on home-sharing that forced Airbnb to remove most of the the tens of thousands of Big Apple rentals on its site at the time.Now, hosts face onerous registrations and new rules including the awkward requirement that they be at home when guests are present — unless the rental period is longer than 30 days.In response, a patchwork of private, invite-only groups has spread across Facebook, Instagram, WhatsApp and Craigslist with names like “Friendbnb” and “Gypsy Housing NYC.” Typically, they charge fees through apps like Venmo or Paypal.One called “NYC Short Term Sublets” says it’s focused on the “middle ground for those looking for short to medium term stays,” with clients who “come to New York for extended periods of time for work, theater performances, film festivals, or just general tourism.” The group has amassed 17,300 members on Facebook since April 2023 and has added 630 postings over the past month alone.Meanwhile, in June a New York-based startup called Ohana rented out a 2,000-square-foot loft space in the newly renovated Domino Sugar Factory in Brooklyn.

There, a handful of 20-something employees can be found hunched over their Macs daily, trawling through some 40 of these social media groups that, according to its recent tally, account for some 60,000 listings.Ohana, which focuses on rentals longer than 30 days, hasn’t been shy about trying to lure landlords and renters alike from any group on any app that it can.On a regular basis, sparks can fly.“Hey guys – Apologies but this group has been infiltrated by some lame startup started by these Chads who are paying people to post listing in the grou...