May 2, 2023 - Business

New Orleans is one of the worst cities for Airbnb fees

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Illustration: Sarah Grillo/Axios

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.

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