This year, Louisiana state legislators could consider bills that could bring tighter regulation and enforcement to the state’s short-term rental industry.
New Orleans housing advocates say the proposed bills are a step in the right direction in controlling an industry they claim negatively impacts housing stock and affordability for residents by taking homes and apartments off the long-term market and renting them to tourists.
For nearly a decade, the city of New Orleans has attempted to regulate the short-term rental industry through a myriad of local ordinances. The regulations, which have largely focused on short-term rentals in residential neighborhoods, apply to properties that are listed on platforms like Airbnb and VRBO. Airbnb and short-term rental operators have struck back, repeatedly challenging the city’s permitting rules in court, and New Orleans City Council President JP Morrell has subsequently threatened to ban short-term rentals altogether.
Usually when we talk about Airbnb, the immediate problem is nobody actually lives here anymore. Now, come to find out, nobody actually tourisms here anymore either.At the same time, there are signs that demand for rooms — whether in short term rentals or traditional hotels — has been softening. As of last week, there had been about 13.6% fewer short term rental bookings during Jazz Fest than there were by the same time last year, according to AirDNA.
Tourism groups are expecting a drop-off in hotel stays as well. New Orleans and Co. is expecting hotel occupancy to be between 72% and 89% each night during Jazz Fest this year, based on a survey of hotels that collectively have about 26,000 rooms in and around downtown and the French Quarter. Last year, the occupancy rates were between about 84% and 95%. Hotel bookings were up during Mardi Gras, when occupancy reached 95%. But at the same time, short term rental units were booked for about 8.5% fewer nights, according to AirDNA.
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