Fight over Dallas short-term rental ban heads to Texas Supreme Court

DALLAS - The saga of a Dallas ordinance banning short-term rental properties in neighborhoods could soon come to an end, as the case heads to the Texas Supreme Court later this year.

Dallas short-term rental ban

Timeline:

In 2023, Dallas passed an ordinance that banned short-term rental properties in neighborhoods. This affected rentals from companies like Airbnb and Vrbo.

The ordinance was put on hold in 2024 when a lawsuit filed by the Dallas Short-Term Rental Alliance resulted in a temporary restraining order being granted.

A state appeals court later upheld the temporary restraining injunction in February 2025. The TRO has remained in place ever since, allowing short-term rentals in Dallas neighborhoods to continue operating.

Local perspective:

In Dallas, neighbors of a rental property located near North Plano Road and West Buckingham Road say the property has caused headaches ever since it was first listed for rent in April 2026.

"They come back around 2:30 in the morning, and they continue partying until like 5 a.m. with very loud music," Kinzie Russell, who lives near the property, tells FOX 4's Lori Brown.

The six-bedroom house describes itself as the "ultimate Dallas group getaway," and features a sauna, mini theater, and more.  Russell says it has been rented every week since April, resulting in parties both during the night and during the day.

"Sometimes cops show. Most of the time they don't ever come."

David Schwarte, a retired attorney, represents the Texas Neighborhood Coalition, which seeks to enforce the ban.

"No sensible person would argue that Marriott or Hilton could buy a home in a single-family residential neighborhood and begin operating a hotel. And there is no difference here between that and operating a mini hotel, except the short-term rentals are actually worse," Schwarte says. 

"And the reason they're worse is they are unstaffed. And there's nobody there to check bad behavior before it gets out of control."

The other side:

Appellate attorney David Coale represents the Dallas Short-Term Rental Alliance, which seeks to overturn the ordinance. He tells FOX 4 the current ban is too sweeping.

"Ninety-plus percent of the short-term rentals in Dallas banned outright without really a well-explained justification on the other side," Cole said. "We've argued that violates the Texas state constitution's protection of economic liberty."

Both Coale and Schwarte are encouraged the Texas Supreme Court is taking up the case.

"I think this signals that the Supreme court is interested in this topic statewide," Coale said.

What's next:

The Texas Supreme Court will hear oral arguments in the case on December 3. A ruling on the ban will likely be issued in early 2027.

Regardless of who the Texas Supreme Court sides with, both Coale and Schwarte expect the ruling to have a statewide impact.

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