Airbnb commissioned Professor Michael A. Salinger and a supporting team of economists from Charles River Associates (CRA) including Dr. Oliver Latham and Muath Masri to prepare a report on the likely economic impact of short-term rental (STR) regulations in New Orleans. These regulations limit the number of STR permits and introduce administrative requirements that can be expected to discourage STRs, with the stated goal being to improve housing affordability. The report reaches two main conclusions.
First, analysis of Airbnb data in New Orleans shows that most properties offered as STRs are unlikely to be made available as permanent housing if STR activity was restricted. This calls into question the key rationale of housing affordability behind the regulations.
Second, restricting STRs would have detrimental effects on tourism, a key industry for New Orleans. STRs play an important role in providing “surge capacity” at times of peak demand for accommodation and by alleviating hotel prices they are likely to encourage more visitors to come to New Orleans and contribute to the local economy.
To read the full report, click here.