New Orleans Defeats Airbnb Lawsuit, Upholds Permit Verification for Short-Term Rentals

The City of New Orleans has issued a statement in response to a court ruling in a lawsuit filed by Airbnb. The city is pleased with the decision, which upholds its authority to regulate commercial activities in neighborhoods and dismisses most of Airbnb's claims. The court also declared that there is no fundamental right to rent out residential property on a short-term basis. City attorneys attribute the result to collaboration with residents.

New Orleans, LA — The New Orleans City Council has expressed its satisfaction with a recent federal court ruling that dismissed Airbnb's lawsuit challenging the city's short-term rental regulations. The decision, handed down on September 8, 2025, upheld the city's authority to regulate commercial activities in neighborhoods and dismissed most of Airbnb's claims New Orleans City Council Hails Landmark Win on Short-Term ...^[2].

The lawsuit, filed by Airbnb, alleged that the city's 2023 short-term rental laws, which create non-commercial short-term rental permits, violated property owners' constitutional rights. Additionally, the platform claimed that the regulations also infringed upon its constitutional rights and violated federal laws. However, the court dismissed these claims, stating that there is no fundamental right to rent out residential property on a short-term basis.

Council President JP Morrell stated, "This is a massive win for the residents of New Orleans. Airbnb has fought us tooth and nail to keep the City Council from regulating short-term rentals, and this ruling is a resounding judgment in favor of that regulatory authority. This City Council will always fight to preserve neighborhoods and prevent corporations from running amok at the expense of residents."

The court's decision was celebrated by city officials and residents alike, who view the ruling as a victory for neighborhood stability and housing affordability. The city's regulations are designed to protect neighborhoods, preserve housing, and ensure that short-term rental platforms are held accountable.

In response to the ruling, Airbnb has not yet issued a formal statement. However, the company has a history of challenging local regulations, including those in New York City and San Francisco, where it has faced similar legal battles.

This ruling comes as the city continues to grapple with the impact of short-term rentals on its housing market and neighborhoods. The decision will likely influence other cities considering similar regulations, providing a precedent for upholding local authority in the face of corporate challenges.

The court's decision is a significant victory for New Orleans residents who have long advocated for fair, enforceable short-term rental rules. The city's commitment to preserving neighborhood stability and affordable housing has been reaffirmed by this landmark ruling.