Wow. A New York judge has ruled that Airbnb is illegal in his city. The basis for his decision is a 2011 law that makes it illegal to rent an entire apartment for less than 29 days. The travel service is lobbying to have the law changed.
Airbnb is shaking up the hotel industry not just in New York, but all over the US. I hope this gets worked out. As of this writing, listings for NYC still appear on the site.