Short-Term Property Owners Sue over Dearborn's New Restrictions

1/20/2026

A group of short-term rental (STR) owners in Dearborn, Mich., has filed a federal lawsuit challenging new city restrictions that took effect Jan. 1, banning STRs in residential areas and single-family homes. The plaintiffs argue the zoning changes, approved in 2025, violate due process rights, constitute an illegal seizure of property under the Fifth Amendment, and conflict with Michigan’s Zoning Enabling Act. City officials say the rules address nuisance complaints and housing affordability concerns. The lawsuit contends the city improperly labeled all STRs as public nuisances without evidence and interfered with existing contracts.

The Detroit News (01/16/26) Julia Cardi