Airbnb sues New Orleans over short-term rental rules

The company argues it should not be held responsible for implementing the city's rules for STRs.

Airbnb is suing New Orleans over the city’s sweeping new rules for short term rentals. 

City Council President J.P. Morrell said in response to the lawsuit that the case is evidence that the company does not want to be regulated. 

Airbnb said the action comes after “exhausting all available paths toward sensible solutions.” The company argues it shouldn’t be responsible for implementing the city’s regulations, and has filed similar lawsuits in New York and San Francisco. 

New Orleans has for years struggled with regulating the short-term rentals that cater to millions of tourists who visit The Big Easy, and maintaining affordable housing for its residents.  

A federal court struck down a 2019 policy banning short-term rentals owned by out-of-state residents. The city then adopted new regulations in 2023. The new set of rules mandates that Airbnb owners live on site and limits STRs to one per block. A federal court is currently reviewing those requirements

New and Proposed Regulations:

  • Flagstaff, Arizona: City officials unanimously adopted a resolution urging the state legislature to address the issue of short-term rentals limiting housing options. (link
  • Palm Coast, Florida: A new short-term rental registration requirement is now in effect and failure to register could result in a board hearing. (link
  • Buffalo, New York: Amid a 60-day moratorium on new short-term rental applications, city officials are considering a new set of rules for non-owner-occupied rentals. (link)  
  • Dexter, Michigan: Town officials are considering creating zoning restrictions to limit short-term rentals in the rural lakeside destination. (link)
  • New Haven, Connecticut: Officials are considering requiring rental owners to live at their property for at least 183 days out of the year in an attempt to limit rowdiness in the beachside town. (link)

Other Noteworthy News:

  • Distance from DOGE: Airbnb is distancing itself from Joe Gebbia after the co-founder and board member joined Elon Musk's DOGE. The move by Gebbia that has led some Airbnb users to delete their accounts. (link
  • Steady as she goes: Occupancy levels and average daily rates of short-term rentals in Ithaca, New York, are holding steady even after new regulations were introduced. (link
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