Inside the Rooms Where New Orleans Gets Built: Zach Smith on Permits, STRs & the Road to a Stronger City

KW New Orleans welcomed Zach Smith, Founder of Zach Smith Consulting & Design, and his partner Ron Loesel, for one of the most candid—and useful—conversations of the year on permitting, zoning, STRs, and the structural issues shaping New Orleans’ growth.

For real estate agents, this wasn’t civic theory.
This was transaction-level, client-level, deal-saving intel straight from two of the city’s most respected permitting and land-use experts.

As Jeffrey Doussan, Jr., Operating Principal of KW New Orleans, said:

“If you want to help clients make smart decisions, you have to understand how the city actually works—not how we wish it worked.”And that’s exactly why we bring these leaders into the room.

Why it matters

Every agent in New Orleans eventually hits the same wall:
a deal delayed—or destroyed—by permitting, zoning, or City Hall logjams.

A few examples from this year alone:

1. Buyers walking away after discovering old open permits
2. STR owners losing licenses mid-renovation
3. Restaurants leasing Magazine Street spaces they legally can’t use
4. Appraisers flagging illegal additions
5. Investors backing out due to unclear land-use

Our city’s permitting environment shapes:

1. What gets built
2. What sells
3. How fast transactions close
4. How neighborhoods evolve

And agents who understand that environment win more listings, protect more clients, and build bigger businesses.

State of play: A system in need of modernization

Zach and Ron didn’t sugarcoat the reality.

Ron put it plainly:

“The people inside City Hall aren’t the problem. They’re good people stuck in old, parochial, broken systems.”Zach added that the city’s permitting environment has been weighed down by:

1. Outdated technology
2. Unclear enforcement
3. Years of deferred investment
4. Leadership turnover
5. Slow post-COVID recovery

Agents feel it every day—clients trying to open businesses, convert garages, clarify zoning, or purchase multifamily often hit walls that make no sense from the outside.

As Jeffrey told the room:

“We don’t need agents guessing. We need agents guiding.”And that requires understanding the system well enough to spot red flags before clients spend money they can’t get back.

A hopeful shift: Why the experts see real change coming

Despite the long-standing challenges, both Zach and Ron made it clear:
There is a legitimate reason for optimism.

1. The incoming administration understands the problem.

With a mayor who has served on the City Council, permitting pain points aren’t theoretical—they’re lived.

2. Expect a renewed push for economic development.

More predictable permitting.
Clearer timelines.
Better zoning interpretation.
A shift back toward helping growth—not hindering it.

3. Safety & Permits may finally get the structural attention it needs.

Ron said it best:

“If City Hall works well, the whole community benefits. That’s why we want it fixed—not just for us, but for everyone trying to build something here.”For real estate agents, improved permitting doesn’t just mean faster approvals.
It means:

1. More investment
2. More renovated homes
3. Healthier commercial corridors
4. More buyers choosing Orleans Parish
5. More listings with fewer issues

Growth starts with functionality.

On STRs: A market defining itself in real time

Short-term rental policy remains one of the biggest wild cards in local real estate.
Zach and Ron broke down the landscape with rare clarity:

1. Inventory is oversaturated in some areas.
2. Banks hold over $100M in commercial STR loans—a major economic factor.
3. Illegal operators were finally purged, which benefits legitimate hosts.
4. A more restrictive commercial STR framework is coming, but existing legal operators who maintain licenses will likely remain protected.
5. Residential rules won’t be drastically loosened.
6. The transient lodging study is two years late and deeply flawed.

The takeaway for agents:
STRs remain lucrative for well-capitalized owners—but risky for newcomers who don’t understand zoning, nonconforming use, or the appeals process.

And that’s exactly where agents can add value—by knowing when to bring in experts before clients waste time or money.

When agents should call Zach & Ron (and why it matters)

This was one of the most practical moments of the session.

Ron’s immediate red-flag list for agents:

1. Any garage, shed, or accessory building clients want to convert or rent
2. Any property in Magazine Street’s restaurant/alcohol overlay
3. Any building with “C” zoning that requires conditional use
4. Any commercial STR plan or conversion
5. Any Healthy Homes rental property
6. Any “nonconforming use” building in mixed corridors

Jeffrey summarized the importance for agents:

“The best agents in this market know the limits of their expertise—and they bring in the right partners early.”KW New Orleans trains agents not just to close deals, but to become trusted advisors who understand the broader environment shaping housing, investment, and neighborhood growth.

That’s the difference between being a salesperson… and being a leader.

Big picture: New Orleans can still write a better future

Despite the challenges, the room walked away energized.

Why?
Because Zach and Ron reminded us that:

1. Systems can be rebuilt
2. Priorities can shift
3. Permitting can modernize
4. STR rules can stabilize
5. Economic development can accelerate

Both experts expressed genuine hope about the city’s next chapter:

1. A clearer sense of priorities
2. Renewed focus on core operations
3. Reform of outdated processes
4. Stronger alignment between Council and the Mayor’s office

New Orleans’ best days aren’t behind it.
But rebuilding momentum requires collaboration between government, residents, developers—and yes, real estate agents.

The bottom line

Real estate professionals sit at the intersection of:

1. Investment
2. Housing
3. Neighborhood identity
4. New business creation
5. Renovation
6. Population growth

If New Orleans is going to grow again, agents must be part of the conversation.

At KW New Orleans, we’re committed to hosting the city’s smartest voices—economists, policymakers, preservation leaders, bankers, developers, and permitting experts—because informed agents build stronger communities.

And stronger communities build a better New Orleans.

Ready to join the brokerage where leaders talk real estate?

KW New Orleans isn’t just a place to hang a license.
It’s where professionals come to understand the city, grow their influence, and lead conversations that shape our future.

If you’re an agent ready to grow your business and your impact—let’s talk.