Finding the Balance: New Orleans’ Short-Term Rental Laws Need Reform, Not Repeal


Homes with unique architecture in Garden District, New Orleans
The unfortunate reality is that New Orleans’ current short-term rental laws don’t just curb corporate greed—they redirect profits from individual homeowners straight into the pockets of massive hotel corporations. In my previous op-ed, I argued that the city’s restrictions have gone too far, but I want to clarify that my position is not a blanket defense of short-term rentals. I have been highly critical of the past, unregulated STR boom that fueled gentrification, drove up rents, and displaced longtime residents. However, my concern now is that in trying to fix those issues, the city has overcorrected, creating a system that hurts middle-class homeowners while handing a financial windfall to large hotel chains. This is not a question of whether STRs should be regulated—they absolutely should be. The question is whether the current policies strike the right balance, and I believe they do not.

But this doesn’t have to be the case. We can implement strong regulations that prevent housing displacement and predatory real estate practices while still allowing responsible homeowners to participate in the economy. A portion of STR-generated taxes could be allocated to an affordable housing fund, creating a sustainable way to both protect residents and support economic opportunity.

I have authored op-eds that were highly critical of the previous free-for-all STR system, and I still believe those policies were destructive. But everything is not black and white—many issues have nuances, and in this case, there is a clear middle ground that can address both concerns. New Orleans deserves better than an all-or-nothing approach—thoughtful, well-crafted policy can protect communities while allowing economic flexibility for homeowners who need it most.

Recognizing the Past—STRs Had to Be Reined In

To be clear, I am not advocating for a return to the unregulated STR era that wreaked havoc on New Orleans’ housing market. The city was absolutely right to take action when corporate investors were buying up homes, pushing out long-term residents, and hollowing out entire neighborhoods. Rents skyrocketed, gentrification displaced families, and some communities felt more like short-term rental hubs than places where people actually lived. The problem was real, and I supported the push for regulation.

However, as I’ve argued before, “New Orleans’ current short-term rental laws don’t just curb corporate greed—they redirect profits from individual homeowners straight into the pockets of massive hotel corporations.” By swinging too far in the opposite direction, the city has created a system that favors hotels while cutting off an essential financial lifeline for homeowners. The goal should have been balance, but instead, we got an overcorrection.

A Balanced Approach: Protecting Housing Without Strangling Homeowners

New Orleans doesn’t have to choose between protecting affordable housing and allowing responsible STRs—it can do both. Other progressive cities have managed this balance:

• Seattle: Limits investors to two STR properties, but allows homeowners to rent their primary residence with few restrictions.

• San Diego: Caps the total number of STRs citywide but prioritizes owner-occupied rentals.

• Boston: Requires STR hosts to register and pay local taxes while ensuring corporate entities don’t dominate the market.

New Orleans should follow this lead. Instead of blanket bans, arbitrary lotteries, and overly restrictive caps, we need a regulatory framework that supports homeowners while preventing corporate overreach. That means implementing a clear, fair permitting system that prioritizes owner-occupied rentals while ensuring real estate investors can’t exploit the system.

As I’ve said before, “We can implement strong regulations that prevent housing displacement and predatory real estate practices while still allowing responsible homeowners to participate in the economy.” The key word here is responsible. That means:

1. Limiting STRs to primary residences – Homeowners should be able to rent out part of their home or a secondary unit on the property with reasonable regulations in place.

2. Eliminating the arbitrary permit lottery – STR applications should be accepted year-round based on clear, enforceable criteria, not a system of chance.

3. Strengthening anti-corporate ownership rules – STR permits should be available only to individuals, not LLCs or corporations, to prevent bulk buying.

4. Using STR tax revenue for affordable housing – Instead of banning homeowners from earning STR income, direct a portion of the revenue toward long-term housing solutions.

New Orleans Needs Smart Policy, Not a War on Homeowners

The city’s leaders were right to clamp down on corporate STR abuse, but the current laws have gone too far—hurting regular New Orleanians instead of major investors. As I previously wrote, “New Orleans deserves better than an all-or-nothing approach—thoughtful, well-crafted policy can protect communities while allowing economic flexibility for homeowners who need it most.”

That is what I am advocating for. Not a return to the wild west of STRs, but a better balance that protects both affordability and economic opportunity. The city has taken many healthy steps to curb corporate greed, and I fully support that effort. But at the same time, the current restrictions on primary homeowners—who live in the city, pay taxes, and contribute to their communities—are too extreme.

A Defense of Nuance in our Politics 

Not everything I write is going to be popular, nor is everyone going to agree with me. But it seems that today, nuanced opinions are rarely tolerated—not just in this debate, but in our political discourse as a whole. If someone doesn’t align completely with one extreme or the other, their perspective is dismissed rather than considered. That’s a troubling trend, not just for this issue, but for how we govern and solve complex problems. There is a middle ground that acknowledges the damage caused by unchecked short-term rentals while also recognizing the harm of excessive restrictions on homeowners. New Orleans deserves policy that reflects the full reality of the issue—not just one side’s talking points.

This is not an impossible problem to fix. Other cities have figured it out. New Orleans should, too.

 

Evangeline
Author: Evangeline

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