By prioritizing corporate hotel profits over the economic survival of working- and middle-class homeowners, New Orleans politicians have made a catastrophic mistake. The city’s draconian short-term rental (STR) laws, once intended to curb corporate greed, have instead become an economic stranglehold on residents who rely on STR income to stay afloat in an increasingly unaffordable city. These policies are not just anti-Airbnb—they are anti-homeowner, anti-entrepreneur, and ultimately anti-middle-class.
A City That No Longer Works for Its Homeowners
New Orleans now has some of the strictest short-term rental regulations in the country. The latest ordinance limits STRs to one per residential block and requires owners to reside on-site—effectively shutting out thousands of homeowners who were responsibly using platforms like Airbnb and Vrbo to supplement their income. Worse, the city has instituted an arbitrary lottery system for permits, forcing homeowners to gamble on their ability to earn a living. If they don’t win the lottery, they’re out of luck—no matter how much they need that income to keep their home.
Meanwhile, costs for homeowners have skyrocketed. Louisiana has some of the highest home insurance premiums in the nation due to repeated hurricanes, and property taxes and utilities are climbing steadily. Yet, instead of allowing homeowners to find new revenue streams to offset these growing costs, the city has made it nearly impossible for them to do so legally.
Short-Term Rentals Are a Lifeline, Not a Luxury
For many New Orleanians, STR income was never about getting rich; it was about survival. STRs have provided homeowners with a flexible and immediate way to bridge financial gaps. Unlike traditional long-term rentals, which come with significant risks, short-term rentals allow property owners to adjust to market conditions and maximize earnings when they need it most. By severely limiting STRs, the city has effectively stripped homeowners of this vital financial tool—while handing a massive windfall to big hotel chains that now dominate the short-term lodging market.
This is bad economic policy. Inflation is squeezing household budgets, wages have not kept up with the soaring cost of living, and housing expenses continue to rise. Preventing people from monetizing their own property in a reasonable, controlled manner is not just unfair—it’s destructive.
A Better Way: Fair Regulation Without Economic Strangulation
There is a smarter, more balanced approach to STR regulations that would curb corporate greed while still protecting economic opportunity for homeowners. New Orleans should replace its arbitrary permit lottery and block caps with a residency-based system that ensures STRs remain primarily in the hands of local homeowners, not corporations.
A fairer approach would:
• Allow primary homeowners to rent their homes with fewer restrictions while keeping strict limits on out-of-state investors and corporate buyers.
• Remove the permit lottery and allow year-round applications with clear, transparent regulations.
• Enforce a “no corporate bulk buying” rule, ensuring that only individuals—not companies—can own and operate STRs.
• Use STR-generated taxes to fund affordable housing efforts rather than cutting off economic opportunities for homeowners.
• Implement strong neighborhood protections to prevent party houses while ensuring responsible hosting.
Other cities have found ways to regulate STRs without suffocating middle-class homeowners. Seattle, San Diego, and Boston have implemented licensing and taxation systems that balance neighborhood protections with economic opportunity—proving that responsible regulation does not have to mean financial ruin for homeowners.
New Orleans Needs Smart Policy, Not a War on Homeowners
New Orleans does not have to choose between curbing corporate greed and supporting economic opportunity—it can and must do both. The city’s current short-term rental policies do not regulate responsibly; they punish middle-class homeowners while protecting corporate interests.
Airbnb is now suing the city over these extreme rules, and they have a case. These policies kill innovation, limit economic opportunity, and unfairly favor large corporations over individual homeowners. Instead of doubling down on bad policy, New Orleans must find a way to protect housing affordability without driving its own residents into financial hardship.
Short-term rentals are not the enemy. The real enemy is economic hardship—and New Orleans’ leaders are making it worse. It’s time to rethink these destructive policies before more homeowners lose their ability to stay in the city they love.
