New York City Hotel Prices Reach Record Highs as Tourism Surges

A combination of increased demand, regulatory shifts, and reduced lodging availability is driving unprecedented costs for travelers.

The average nightly rate for a hotel room in New York City hit $417 in September 2024, the highest monthly price ever recorded, according to CoStar.
Factors contributing to the surge include the use of 20% of the city's hotels as migrant shelters, stricter regulations on short-term rentals like Airbnb, and a rebound in travel demand post-pandemic.
Local Law 18, which restricts short-term rentals, has reduced Airbnb listings in NYC by nearly 80%, further tightening the city's lodging supply.
Luxury hotels are now charging over $1,000 per night, while mid-tier hotels have increased rates by more than 50% since 2020, leaving travelers with limited affordable options.
Despite the challenges, NYC is expected to welcome 65 million tourists in 2024, with projections reaching a record 68 million visitors in 2025.