🎯 STRisker: Bulletin - Dallas, TX
Dallas Vacation Rental Ban on Hold Again


Dallas STR Ban Stuck in Legal Limbo

Dallas’ ongoing battle with short-term rentals (STRs) is starting to feel like a never-ending rerun. On August 21, the city lost yet another court fight in its two-year effort to enforce a sweeping ban that would shut down nearly all STRs within city limits. For now, STR operators can keep doing business — but only because the courts keep putting City Hall’s plans on pause.
The backstory goes something like this: a few rogue rental properties drew neighborhood ire with loud, wild parties that made headlines. In response, the city launched a two-pronged ordinance designed to heavily restrict STRs. The idea was to zone them out of most neighborhoods while slapping guardrails on the few that remained. To STR owners, that move felt like collective punishment. They argued most hosts were responsible and didn’t deserve to be penalized for the mistakes of a few. So they sued.
The lawsuit quickly slowed Dallas’ plans. Earlier this year, the Fifth District Court of Appeals ruled that the ban couldn’t be enforced until the case fully worked its way through the courts. In July, the same three-judge panel doubled down, refusing to budge. Then last week, Dallas made a push to get the full appeals court to review the case en banc. Once again, the judges shot it down.

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That left STR operators breathing a sigh of relief. The Dallas Short-term Rental Alliance, a key player in the suit, said it was pleased with the ruling but tired of the courtroom back-and-forth. “We would welcome moving past lawsuits and getting to the serious business of putting a reasonable ordinance in place,” the group said, urging the city to collaborate rather than litigate.
What’s more, STR owners have their eyes on the future. With the 2026 FIFA World Cup set to bring an international crowd to Dallas, operators say they want to roll out the red carpet, not wrestle with injunctions.
Meanwhile, neighbors remain divided. Some see STRs as disruptive invaders, while others argue they provide valuable lodging options and even bring in tourism dollars to local businesses. But until the courts make a final ruling — which could still take months, if not longer — Dallas’ ambitious STR crackdown is stuck in neutral.

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