Subletting is generally legal in NYC and lease provisions banning it aren't allowed in most cases. What isn't allowed is subletting for more than you are paying in rent. If the host was charging more than his rent it was already illegal to perform the sublet and it is now illegal to advertise the illegal sublet.
If he is charging the same amount or less than it continues to be legal to both perform the sublet and advertise the legal sublet on platforms like AirBnB.
This will inhibit mobility and hurt newcomers to the city, especially in the young technology/creative classes. But what sort of politician would actually care, as long as they're not politically active in our jurisdiction yet, am I right?
I successfully moved to a number of different cities with neither money nor job prospects. It involved using the ancient human rituals of "using a telephone", "riding the bus", "speaking with other persons" and "walking around".
In the process I had to deal with some minor inconveniences and sometimes things didn't go exactly the way I wanted. The horror!
Can't you just understand: what you're advocating is pretty much legal torture of high-income Americans on a site about Web 2.0 startups?!?!? /s
But that doesn't mean that an unrestricted free-for-all is the only possible alternative.
I agree that it limits mobility but the law also protects residents from constant, disruptive behavior from serial short-term renters.
I have never lived near a serial short-term rental, but I imagine I would dislike it if I lived next door to one.