If the AirBnb rentals complied with hotel regulations you would have a point, but it's not an apples to apples comparison. Renters/owners like to take advantage of the fact that by not being in compliance with hotel laws they can undercut hotel prices and make an illegal profit. That's not the same as what the underlying property value is if you comply with regulations.
Investors in NYC given the choice of building hotels, office buildings, or residential properties are generally building residential properties. In fact a lot of the rezoning has been turning commercial space into residential space over the last 5-10 years. The market is clearly demanding residential space (specifically luxury units) first and foremost.
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If the AirBnb rentals complied with hotel regulations you would have a point, but it's not an apples to apples comparison. Renters/owners like to take advantage of the fact that by not being in compliance with hotel laws they can undercut hotel prices and make an illegal profit. That's not the same as what the underlying property value is if you comply with regulations.
Investors in NYC given the choice of building hotels, office buildings, or residential properties are generally building residential properties. In fact a lot of the rezoning has been turning commercial space into residential space over the last 5-10 years. The market is clearly demanding residential space (specifically luxury units) first and foremost.