Louisville Planning Commission Approves Regulations for Short Term Rental Density and Cap

In a recent Planning and Zoning meeting held in Lewisville, Denton County, significant discussions centered around the regulation of short-term rental units (STRs) and the approval of a new commercial building project. The meeting, which took place on July 15, 2025, highlighted the city's ongoing efforts to manage the growing demand for STRs while ensuring neighborhood integrity.

The first major topic addressed was the approval of a new commercial building designed to accommodate businesses such as plumbing and tiling services. Unlike high-traffic facilities like Amazon distribution centers, this development aims to serve local residential needs, reflecting a shift towards supporting community-oriented businesses. The motion to approve the project passed unanimously, indicating strong support from the commissioners.

The second and more complex discussion revolved around proposed amendments to the Unified Development Code concerning STRs. After nearly two years of deliberation, city staff presented a plan to repeal an interim prohibition on STRs and establish new definitions and regulations. The proposed changes include a cap of 130 STR permits citywide, which represents about half a percent of the single-family housing stock in Lewisville. Currently, the city has issued 120 permits, nearing this limit.

Public outreach efforts revealed mixed opinions on STR regulations. A survey conducted earlier this year indicated that while some residents support limiting STRs to certain zoning districts and establishing minimum distances between them, others expressed concerns about the potential impact on neighborhood character. Notably, 65% of survey respondents favored limiting STRs to prevent overcrowding in residential areas.

The proposed regulations also include a minimum distance requirement of 1,000 feet between STRs and a cap of 3% of units in multifamily properties. Existing STRs with active permits would be grandfathered in, allowing them to continue operating under the new rules. This approach aims to balance the interests of property owners and residents who seek to maintain the character of their neighborhoods.

As the Planning and Zoning Commission prepares to forward these recommendations to the city council for further consideration on August 18, the discussions reflect a broader trend in many cities grappling with the implications of STRs on local communities. The outcome of these deliberations will likely shape the future landscape of housing and tourism in Lewisville, as officials strive to find a solution that accommodates both economic growth and community well-being.