Jersey City’s Limits on Airbnb Rental Market Upheld on Appeal

A Jersey City, N.J., ordinance restricting short-term housing rentals through services like Airbnb Inc. survived a legal test Tuesday, when the Third Circuit rejected a lawsuit by property owners and lease holders arguing the law violates their constitutional property and due process rights.

The 2019 ordinance, which limits short-term rentals in non-owner-occupied properties to 60 nights per year, isn’t an unconstitutional taking of the plaintiffs’ property under the Fifth Amendment, the US Court of Appeals for the Third Circuit said. The properties purchased or leased by Gennadiy and Eugene Nekrilov and their co-plaintiffs haven’t been made “economically idle” by the ...