Evaluating the impact of short-term rental regulations on Airbnb in New Orleans

The short-term rental market has grown rapidly over the last decade, led by the ascendance of Airbnb. The multifaceted impacts of short-term rentals, including increases in housing prices, changes in neighborhood character, and loses of revenue for hotels, have invited regulation from city governments. The City of New Orleans passed laws in December 2016 designed to regulate the short-term rental market and prevent further unfettered growth. This paper evaluates those regulations on the number and character of Airbnbs in the city prior to and after the enforcement of the laws. The regulations temporarily reduced the overall number of Airbnb's in New Orleans, but growth has resumed after a one-time decline. In addition, the regulations appear to have shifted growth into residential neighborhoods and away from the French Quarter.