New Orleans Short-Term Rental Saga

By J.A.K. Harris

A Fair Deal for Neighbors: Cap, Don’t Ban Short-Term Rentals

New Orleans is a city defined by its rich culture, deep-rooted traditions, and vibrant hospitality. Our identity is shaped by a sense of community and a commitment to preserving what makes this city unique.  In its uniqueness, this charming city produces a protective bunch that tends to be wary of outsiders. Don’t get me wrong, while we welcome visitors who come with open hearts, we also recognize the importance of ensuring that our neighborhoods remain livable, our history protected, and our economy sustainable.

Short-term rentals (STRs) offer the potential to help meet those opposing priorities.  They allow longtime residents, homeowners, and investors to welcome visitors while passing on the uniqueness of our city and stimulating economic development. But if you drive through New Orleans, block by block, you notice the intractable challenges we face—vacant homes, blight, graffiti, and dormant commercial corridors. These issues underscore the necessity of deliberate, community-driven solutions, not reactive measures that limit economic potential. In order to truly deal with issues concerning STRs, we must recognize that two different concerns have been conflated: Commercial Short-Term Rentals (CSTRs) and Non-Commercial Short-Term Rentals (NSTRs).

Commercial Short-Term Rentals (CSTRs) are rentals in structures with more than four dwelling units or in historically commercial buildings such as office buildings, old churches, or mixed-use buildings. These properties often have structured governance—homeowners' associations, investors, or management groups that regulate operations. The challenge arises when zoning permits a certain number of short-term rental units, but long-term residents within these buildings oppose transient-style living. At the same time, owners of non-owner-occupied units seek to maximize rental returns, leading to citywide tensions.

To introduce fairness, the city implemented a lottery system for CSTR permits, allowing property owners to apply and submit documentation for a chance to operate legally.

Note: In New Orleans, a commercial short-term rental (CSTR) is defined as the use of a dwelling unit for less than 30 consecutive days, in exchange for money, goods, or services. A CSTR permit is required for properties that are rented for 30 days or less, and these permits are generally not transferable.

Non-Commercial Short-Term Rentals (NSTRs)—residential properties used for short-term stays—present a different challenge. The city’s current ordinance is vague, creating legal uncertainty and exposing New Orleans to potential litigation. An outright ban on NSTRs would be excessive and counterproductive. Instead, a well-regulated cap on permits, paired with stricter enforcement, would provide a balanced approach—protecting residential communities while still allowing homeowners to participate in the STR market.

Note: Non-commercial short-term rentals (NSTRs) are rentals of residential property for 30 consecutive days or less that are located in residentially zoned areas and are owner-occupied.

New Orleans stands at a crossroads. We can either embrace thoughtful regulation that preserves our neighborhoods while fostering economic growth, or we can stifle innovation with sweeping restrictions. The future of this city must not be one of missed potential. Instead, New Orleans must become the anchor of the Southeast: an economic driver of innovation, sustainable development, and cultural preservation.

The way forward isn't to prohibit STRs, but to regulate them responsibly. Let's take control of our city's future with policies that benefit all.