NEW ORLEANS, LA — The City secured a landmark victory in Federal Court today. The Honorable Judge Zainey dismissed Airbnb’s lawsuit with prejudice for failure to state a claim upon which relief can be granted. The lawsuit alleged that the City’s 2023 short-term rental laws—creating non-commercial short-term rental permits—violated property owners’ constitutional rights. Additionally, the platform claimed the City’s regulations also violated the platform’s constitutional rights as well as federal laws. 

“This is a massive win for the residents of New Orleans,” said Council President JP Morrell. “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.”

“This ruling is a resounding win for New Orleans, affirming the City Council’s authority to set fair and responsible rules impacting short-term rentals in Orleans Parish,” said City Council Vice President Helena Moreno. “Our regulations are designed to protect neighborhoods, preserve housing, and to hold STR platforms accountable."

“Today’s ruling is a major win for New Orleans residents who have long called for fair, enforceable short-term rental rules,” said District B Councilmember Lesli Harris. “This decision empowers the City to continue safeguarding affordable housing, preserving the character of our neighborhoods, and ensuring that our regulations are enforced fairly.”

“This ruling affirms the City’s authority to protect our neighborhoods from the disruptive impacts of unregulated short-term rentals,” said District C Councilmember Freddie King III. “We’ve worked hard to strike a fair balance between individual property rights and neighborhood stability, and I believe the current rules reflect that effort. The court’s decision supports our commitment to preserving the quality of life our residents expect and deserve.”

“The residents of neighborhoods have invested significantly in their properties and communities and deserve to be able to enjoy the fruits of their labor,” said District D Councilmember Eugene Green. “The City Council’s actions are designed to protect all property owners. The City Council has expressed its support for stable communities, including the stability brought about by fair regulations in the Short-Term Rental industry. Today’s decision is a resounding victory for those who have a stake in and are focused on building strong communities that attract people based on the anticipation of reasonable protections, which make neighborhoods attractive to new residents and already existing residents.” 

The Court flatly dismissed Airbnb’s claim that property owners have a fundamental right to use their residence as a short-term rental. The Court correctly held that “there is no fundamental right to rent out residential property on a short-term basis”.

In addition to upholding reasonable short-term rental permitting regimes, the Court also upheld the right of the City to require platforms to verify listings before confirming a booking transaction. Earlier this year, Council President Morrell authored platform verification legislation, which went into effect last month on August 1.

In its lawsuit, Airbnb alleged that requiring verification is a violation of the Communications Decency Act. The Court appropriately pointed out that platform verification regulates the conduct of a platform as a booking agent. The platform can list as many unpermitted STR rentals as it desires. What the platform cannot do is facilitate a booking transaction—in other words, make a profit—from unpermitted STRs. 

Read the full ruling here.