New Orleans Airbnb Rules Found Unconstitutional by Appeals Court

New Orleans violated the constitutional rights of property owners by restricting short-term rental licenses in residential areas to locals, a federal appeals court ruled Monday, handing a victory to would-be landlords who advertise apartments on platforms like Airbnb.

The US Court of Appeals for the Fifth Circuit ruled against the city, applying the legal framework for ordinances that explicitly discriminate against out-of-staters. Such laws almost always overstep by interfering with interstate commerce, which only the federal government may regulate, the court found.

Judge Jerry E. Smith, writing for the court, said the policy ran afoul of the dormant commerce clause, ...