As New Jersey prepares to host the rapidly approaching FIFA World Cup, numerous concerns were raised about the nearby housing options for the grand event. Compared to its neighbors, Hoboken has a more lax approach to Airbnb rentals. But with over a million incoming soccer fans, new legislation may help protect Hoboken residents and renters.
Kearny, Union City, Secaucus, and other towns had stricter bans, limits, and fines for short-term rentals compared to Hoboken. For Jersey City, short-term rentals are only allowed at the host’s primary residence. Additionally, the owners must live on-site for most rentals with mandatory registration, inspections, and a liability insurance requirement. Meanwhile, North Bergen limits short-term rentals to only certain owner-occupied houses while requiring an annual permit and documentation.
In contrast, Hoboken has no regulations on short-term rentals, and with nearly 300 houses available, it created a huge surge in demand for rentals. To catch the hype, Airbnb is currently offering a bonus of $750 for new hosts within the FIFA event zone. According to Airbnb, the searches for stays in host cities have increased an average of 80% compared to last year.
However, Hoboken’s lack of policies on short-term rentals drew criticism from affordable housing advocates in Hoboken. Cheryl Fallick, an association spokesperson and a member of Hoboken’s rent-leveling board, argued that it disincentivizes affordable housing. The lack of clear regulations will drive lower-income renters out and turn rent-controlled apartments into pseudo-hotels. Fallick stated that Hoboken should only allow short-term rentals for certain situations, like when the owner is on-site in their own apartments or for a limited number of days if the owner is away.
Hoboken Councilmember Joe Quintero, a lawmaker working on the new short-term rental legislation, stated that he and other city officials are attempting to enact these policies before the FIFA World Cup. ”The reality is that these short-term rentals are going to happen, and so what we want to do is take this market out of the gray zone,” Quintero said, “If we don’t have clear rules set, it will be the Wild West.” Quintero claimed that he wanted to prohibit rent-controlled apartments from being refurbished as short-term rentals and to impose taxes on Airbnbs and similar listings. “That is a revenue source that we can and should avail ourselves of if we have the opportunity,” he said.
This isn’t the first time these regulations have been debated. In 2021, the Hoboken City Council members attempted to pass an ordinance that would block short-term rentals in rent-controlled properties. Penalties for this violation would be up to $2,000 for each offense. Its attempted passing brought into light that a Hoboken City Council member was renting out his apartment during COVID-19 travel restrictions. However, the ordinance itself was never passed and instead was tabled over its possible impacts on affordable housing.
The lack of funding from Congress led to security and transit problems, which are other causes of concern with FIFA. Ultimately, only time will tell how these issues will be handled and whether or not stricter regulations for short-term rentals will be beneficial for Hoboken’s community.
