Dallas short-term rental ban goes to the Texas Supreme Court

On October 23, 2026, the Supreme Court of Texas agreed to review City of Dallas v. Dallas Short-Term Rental Alliance (No. 25-0748). According to the court’s order, oral argument is set for December 3, 2026, at 9:00 a.m., with 20 minutes per side. FOX 4 reports that a ruling is expected in early 2027.

How the case got here

Dallas adopted its rules in June 2023. According to The Dallas Morning News, they ban short-term rentals in single-family neighborhoods and add annual registration and fees, occupancy and noise limits, and a local contact who can respond to the property within one hour. A group of operators sued, a trial court put the ban on hold, and in 2025 a state appeals court kept that block in place. FOX 4 reports that short-term rentals in Dallas neighborhoods therefore continue to operate. According to the docket, the city filed its petition with the Supreme Court on October 16, 2025.

One detail matters: FOX 4 noted in February 2025 that the appeals ruling concerned only the temporary order, not whether the ordinance itself is legal.

What is at stake

Dallas code officials counted 3,495 active short-term rentals in November 2024 and said there may be more, The Dallas Morning News reported. David Coale, the attorney for the alliance, has argued that more than 90 percent of them would have ended under the ordinance. He told FOX 4 that the ban is too sweeping and violates the economic liberty protections in the Texas Constitution. David Schwarte, a retired attorney representing the Texas Neighborhood Coalition, says the rentals are unstaffed, so nobody is there to check bad behavior.

Both attorneys expect a statewide impact, whichever side wins. The docket also lists outside groups weighing in, among them the Neighborhood Coalition of Dallas, the Goldwater Institute, the Texas Public Policy Foundation and the Institute for Justice.

What does this mean for you?