New Orleans is one of the worst cities for Airbnb fees

New Orleans is one of the worst cities in the country for extra Airbnb fees, according to an analysis from Forbes.

Driving the news: About 45% of the cost of an Airbnb stay in New Orleans is made up of fees — cleaning fee, service fee and taxes — Forbes said. New Orleans was the ninth-worst city on the list.

Why it matters: Short-term rentals are changing the real estate market in New Orleans and are blamed by some for driving up rental costs for residents and “hollowing out Black neighborhoods.”

• New rules go into effect July 1 that limit short-term rentals to one per square block, but City Council can approve more on a case-by-case basis.
• The regulations were updated after judges with the 5th Circuit Court of Appeals in New Orleans ruled last year that the previous policy “unconstitutionally restricted interstate commerce.”

Yes, but: People in favor of local short-term rentals say they “broaden the tourism market and provide many homeowners with necessary supplemental income,” AP says.

By the numbers: Atlanta was the worst city in terms of fees (48%). Houston was No. 8 with 45%.

• The average is 36% in fees on top of nightly rates, Forbes found.
• The higher fees make Airbnb prices comparable to hotel rates in some cities.
• The average Airbnb nightly rate in New Orleans is $203.

Zoom out: Forbes Advisor said it looked at 32,000 listings in the 100 most popular Airbnb markets. The analysis reviewed listings for July 2023.