NYC has rent controls, which themselves actually limit the quantity supplied. Arguably, AirBnB provides for a more efficient resource allocation since it allows the unit's price to float to the market equilibrium.
If I'm on vacation, I'm not looking to save every single dime because I know that it's a one-off expense.
If I'm looking for an apartment, I'll actively research to find the best deal because it's a long term commitment that could have huge ramifications on my finances years in the future.
Case in point:
I'd gladly pay $250 a night in a Manhattan hotel, because fuck it, I'm going on vacation, will only be there a few days, and don't want to spend an hour each day on the train getting to/from Newark just to save a couple hundred bucks.
But I would have to be crazy to pay $250 a night for an equivalent (i.e. studio) apartment in Manhattan, regardless of how much time it cuts off of my commute.
Residents provide stability to a polity's long term tax base, and are also the source of votes that politicians of said polity need to get re-elected. So, unless you want wild, cyclical swings in your polity's finances, long-term is generally a better bet.
