Judge backs New Orleans in short-term rental fight, upholding most rules over the industry

A federal judge on Monday handed New Orleans officials a victory in their battle with the short-term rental industry, upholding nearly all of the city’s strict regulations on the tourist rentals.

The suit, filed in February by New Orleans short-term rental owners and Airbnb in U.S. District Court for the Eastern District, had alleged that the City Council illegally restricted the proliferation of the popular rentals by creating permits, verification rules and limiting the number of rentals in residential neighborhoods.

Judge Jay Zainey rejected most of the plaintiffs’ claims, dismissing the owners' arguments that the rules had violated their property rights.

The decision, which could be appealed to a higher court, allows the city to continue enforcing a short-term rental crackdown laun