Short-Term Rental Crackdown Starts to Bite Some Airbnb Hosts

Legal and regulatory hurdles for people offering their homes for short-term rental on sites like Airbnb Inc. and Vrbo are upending the market for vacation properties.

From New York to California, cities are cracking down on short-term rentals with bans, license requirements or limits on how many people can offer their homes for stays of 30 days or less. Airbnb and property owners are fighting back in court, but their lawsuits so far have had little success.

Many restrictions were imposed just as cities were recovering from the pandemic. They are helping reshape the market and in some places, making ...