Short-term rentals (STRs), such as those offered on online platforms such as Airbnb, have become a popular alternative to traditional hotels, providing travellers with unique, localized experiences. While contributing to local economies through rental income and visitor spending, STRs are reputed to negatively affect housing affordability and availability, pushing regulation to the top of many regions’ agendas. This paper reviews regulatory approaches globally, compiling a typology of the typical limitations being imposed on STRs. With the effectiveness of these regulations in returning supply to the long-term housing market unclear, the paper leverages a case study on New York City, which in late 2023 imposed severe restrictions on STRs, to demonstrate the limited impact of STRs on housing. Despite a massive drop in the number of STR listings, long-term housing supply failed to correspondingly increase, while rental prices grew at a higher rate than comparable U.S. cities. When coupled with the accompanying explosion in hotel room rates that have made NYC less competitive as a tourist destination, this suggests that policymakers should consider alternative ways to address their looming housing crises.