New Orleans is one of the worst cities for Airbnb fees

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.