Understanding the Impact of Short-Term Rentals in Northern Michigan
Understanding the Impact of Short-Term Rentals in Northern Michigan
Short-term rentals (STRs) have become an increasingly important part of Michigan’s tourism and housing landscape. A recent study conducted by Anderson Economic Group for Michigan REALTORS® examined how short-term rentals impact housing, tourism, and local economies in four Michigan counties: Allegan, Berrien, Grand Traverse, and Leelanau.
While these counties represent different regions of the state, the findings provide valuable insight into how STRs function in communities that rely heavily on tourism—something Northern Michigan knows well.
What Are Short-Term Rentals?
Short-term rentals are residential properties rented for short stays, often through platforms such as Airbnb or VRBO. These rentals provide visitors with flexible lodging options while allowing homeowners to generate income from their properties.
In Michigan’s popular tourism areas, STRs are a significant part of the visitor economy.
Short-Term Rentals in Michigan Communities
The study found that the number of short-term rentals has grown significantly in recent years. Between 2018 and 2025, STR listings increased in all four counties studied:
- Allegan County: 46% increase
- Berrien County: 72% increase
- Grand Traverse County: 97% increase
- Leelanau County: 51% increase
Despite this growth, STRs still make up a relatively small portion of total housing in most of the counties analyzed.
In 2023, short-term rentals accounted for:
- 3.4% of housing units in Allegan County
- 3.4% in Berrien County
- 6.0% in Grand Traverse County
- 13.0% in Leelanau County
These figures highlight that STRs represent a limited share of the overall housing supply, even in tourism-focused areas.
Many Short-Term Rentals Are Not Full-Time Rentals
Another key finding is that many short-term rentals are not available year-round. Many are used as primary homes or second homes by their owners and are only rented out part of the year.
On average in 2024, short-term rentals were rented:
- 101 days per year in Allegan County
- 90 days per year in Berrien County
- 93 days per year in Grand Traverse County
- 84 days per year in Leelanau County
Occupancy rates also follow Michigan’s strong tourism seasonality. Rentals see the highest usage during the summer months, when visitor demand peaks across lakeshore and Northern Michigan communities.
Tourism and Local Economic Impact
Short-term rentals play a role in supporting Michigan’s tourism economy by allowing visitors to stay in residential communities and experience local destinations.
Visitors staying in STRs contribute to the local economy through spending on:
- Restaurants and local dining
- Retail shops
- Outdoor recreation
- Entertainment and attractions
- Local services
This visitor spending helps support jobs and small businesses throughout Michigan’s tourism regions.
Housing Market Considerations
The study also examined housing trends such as population growth, rental trends, home prices, and housing supply.
Like many areas across the country, Michigan communities have experienced rising home prices and housing affordability challenges. The research suggests that these trends are influenced by many broader economic factors, including population changes, construction activity, and overall housing supply—not solely short-term rentals.
Understanding these multiple factors is important when evaluating housing policy and local regulations.
The Importance of Balanced Policy
As communities continue to evaluate regulations surrounding short-term rentals, data and research play an important role in guiding thoughtful decision-making.
For many Michigan communities—especially those with strong tourism economies—short-term rentals are part of a broader ecosystem that includes:
- Tourism and hospitality
- Local small businesses
- Seasonal housing demand
- Property ownership rights
Balanced approaches that consider both housing needs and economic benefits will help communities continue to thrive.
Learn More
The full study, “Impact of Short-Term Rentals on Four Michigan Counties,” was prepared by Anderson Economic Group for Michigan REALTORS® and provides a deeper analysis of STR trends, housing markets, and economic impacts.
Aspire North REALTORS® remains committed to sharing research and information that helps members, communities, and policymakers better understand housing issues across Northern Michigan.
