Legal challenges to Austin's short-term rental ordinance remain ongoing

Austin City Council took steps to regulate the short-term rentals, or STR, industry in 2016.

Austin City Council took steps to regulate the short-term rentals, or STR, industry in 2016.

What we reported


In February 2016, the Austin City Council passed a restrictive ordinance on short-term rentals, or STRs. The ordinance places limitations on the operation of Type 2 STRs, which are single-family homes that are rented without the property owner on-site.



The latest


Last year, the Texas Public Policy Foundation sued the city of Austin, claiming its STR ordinance was overly restrictive and violated state and federal constitutional rights. The ordinance restricts the number of people allowed to congregate inside a residence, and how many people are allowed outside after a certain hour. It also plans to phase out all Type 2 STRs by 2022.



What’s next


The lawsuit had its initial hearing in 2016 but will continue into 2017. The issue wraps into CodeNEXT as well. With the initial drafts of the new land development code, Alina Carnahan, public information officer for CodeNEXT, said the new code “intends to continue to allow STRs … under code regulations.”   


This story is one update from The January Issue. View the full list of 10 things to look for here.