Airbnb Isn’t What It Used to Be—And That’s Not All Bad

By Jeff Goodman
Licensed Real Estate Agent, Brown Harris Stevens

“Short-term rentals used to be the Wild West. Now they’re more like regulated cities: still exciting, just with zoning laws.” — Jeff Goodman

The Golden Era Is Over—Now It’s Business

Investors could pick up a property, furnish it affordably, and start earning income without too many complications. That’s how Airbnb was in the early days. What we’re seeing now is the platform—and the market—growing up. Airbnb’s gotten stricter, local governments are enforcing more rules, and guests aren’t settling for just anything anymore.

That’s scared off a lot of casual hosts. That said, there’s still room to make it work if you’re a serious investor—it just takes a different approach now.

Margins Are Thinner, Strategy Matters More

With Airbnb now prioritizing guest experience and cutting down on short-term party rentals, investors have to take a more long-term approach. Passive income is becoming active management. Design, cleanliness, and compliance with local laws are no longer optional; they’re survival.

It also means fewer overnight millionaires. Returns are slimmer, but steadier, if you play it right. Think of it less like flipping a quick coin and more like building a boutique hospitality brand.

Short-Term Is Becoming Mid-Term

A big shift I’ve noticed lately is that more investors are focusing on mid-term rentals as we move through 2024 and into 2025. 30 to 90-day stays for traveling professionals, remote workers, or families relocating. It bypasses some regulatory headaches and keeps occupancy up without the churn of nightly bookings.

The takeaway? Airbnb can still work—but it’s no longer something you can just set up and leave on autopilot. If you’re willing to treat it like a business, there’s money to be made. If not, it’s probably time to exit the game.

About Jeff Goodman

Jeff Goodman is well known as the “Quintessential New Yorker®”, and he and his team are at leading NYC broker Brown Harris Stevens.  Having an extensive career in the field of real estate Jeff has a deep understanding of Manhattan, Brooklyn, and parts of Queens and the Bronx. Jeff’s clients’ missions are his vision: he guides, educates and advocates for them. This philosophy has made him a trusted advisor to those he works with and for.  Jeff is passionate about New York’s amazing neighborhoods and showcases them through his “Rediscovering New York” podcast and walking tours. This programming has earned him recognition from RIS Media as a “Newsmaker” for six consecutive years.