Well, February month was kinda crazy for New Orleans City because we saw a company sue the city for something specific. And yes, we’re talking about the Airbnb New Orleans Lawsuit, where Airbnb took the city to court because of some new and strict rules regarding short-term rentals. If you don’t know anything about these new laws yet, well, just know that the city wants Airbnb to make sure that every listing on their platform follows the local laws. But why? Well, it has something to do with the local housing market.
Though, Airbnb is saying that it is not actually their job to make sure that because their platform only works as the link between renters and homeowners, that’s all! And since the city has already implemented these rules, the Airbnb company isn’t happy about it all, and that’s precisely why they have taken this matter to court.
What Led to This Mess?
First of all, if you think that this matter is actually a new thing, you’re wrong about that. This has been going on for quite a while, or you can say it has been somehow brewing for years, like, back in 2016 we saw the city legalize short-term rentals. But why? Well, they were hoping that it would bring some extra tax money which would ultimately be helpful in not just regulating but booming the industry as well on the local scale.
But as we all know, things didn’t work out quite well, and that’s why so many people say that things got out of hand real quick. Like, what happened? Oh, the city came up with even stricter rules back in 2019, where you can’t own a short-term rental property in Louisiana if you don’t live in the state. Really? Oh yes, but worry not, the federal court actually took down this rule.
Though, the city tried a different approach to the same thing, and in 2023, they passed new rules once again, and this time, they said that the Airbnb hosts must live on the property they were renting out, but that was just for the sake of it. Nobody followed these rules and still, illegal rentals kept popping up anyways.
So once again, the city decided to try even harder, and this time, like really recently in 2025, they came up with a new law that requires Airbnb and other short-term rental platforms to verify that every listing in the city has a permit, and that’s precisely what this whole drama is all about.
Both Side Of The Story
Well, Airbnb came out and straight up said that these rules are unfair and impossible to enforce. They say that it isn’t their job to make sure that people follow the laws, after all, they’re just the platform that links renters to homeowners and that’s all.
Though, as it is pretty apparent already that the New Orleans officials say the new rules are necessary to crack down on illegal rentals. Why? Well, as per them, the city is struggling with a major housing crisis.