NEW ORLEANS (AP) — A key provision of a city law restricting short term, Airbnb-style rentals in New Orleans has been ruled unconstitutional by a federal appeals court. The provision effectively limits short-term rental licenses to people living in the city.
The 5th U.S. Circuit Court of Appeals ruled Monday that the provision unconstitutionally excludes out-of-state property owners from having licenses.
Officials adopted the 2019 rules in hopes of stemming the spread of “whole-home” vacation rentals. The rule came amid complaints that the rentals were driving up property costs and tax assessments and driving away full-time residents from historic neighborhoods.