Stricter regulations on short-term rentals in cities such as New York and Barcelona seem to be having a negative impact on Airbnb’s business, according to a new report from UBS, which reviewed nearly 1 million listings from 127 different Airbnb markets worldwide.

Although listings in Airbnb’s seven largest markets grew 40% year-on-year, listings and bookings globally grew at a slower pace than just one year ago, as a result of more listings available worldwide and regulatory action in some of Airbnb’s top markets.

Looking at data for the heavily-regulated New York City and Barcelona, available listings in both cities were down around 10% year-on-year in February 2017, although the impact was felt less in San Francisco and Berlin where Airbnb is also dealing with regulatory issues.

The report concludes that while Airbnb still poses a challenge to traditional hotels, the change in regulations has reduced the magnitude of the threat.

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