New York City has begun enforcing a 2022 law that restricts short-term rentals like Airbnb, $ABNB.

This action is anticipated to result in the removal of numerous listings from these platforms. It marks the latest and potentially the most significant development in the ongoing dispute between major cities and home-sharing companies.

The city contends that the widespread availability of short-term rentals on platforms such as Airbnb has contributed to rising rents and exacerbated the housing scarcity in New York City.

Airbnb has characterized these new regulations as an "effective prohibition" on its platform, while critics argue that the city is yielding to pressure from the hotel industry and eliminating affordable lodging options for visitors.

Under the new system, rentals shorter than 30 days are only allowed if hosts register with the city. Hosts must commit to being physically present in the home for the duration of the rental, sharing living quarters with their guest.