What a New Michigan Study Says About Short-Term Rentals — And How They Actually Impact The Regions They Are In

If you have been wondering whether short-term rentals are driving up home prices in Northern Michigan, squeezing out long-term residents, or hollowing out the housing supply, a newly released independent study has some data-driven answers. In November 2025, Anderson Economic Group published a comprehensive analysis commissioned by Michigan Realtors examining the impact of STRs across four Michigan counties: Grand Traverse, Leelanau, Allegan, and Berrien. The findings are nuanced, and for buyers and investors considering property on the peninsula, they are worth understanding.

How Large Is the STR Market Here?

As of 2023, Grand Traverse County had approximately 2,783 active short-term rental listings, representing about 6 percent of the total housing stock. Leelanau County had around 2,027 STR listings, representing 13 percent of its housing units. Both are well above the state average, which reflects the region's long-standing identity as a vacation destination. STR listings grew significantly between 2018 and 2025: up 97 percent in Grand Traverse and 51 percent in Leelanau.

Importantly, most of these properties are not rented year-round. In 2024, the average STR in Leelanau was rented just 84 days out of the year, and in Grand Traverse about 93 days. Occupancy peaks sharply in summer, with July seeing over 80 percent occupancy across the region, and drops significantly in the off-season. Many of these properties serve as vacation homes for their owners the majority of the time and are listed on STR platforms only during periods they are not in use.

The Economic Contribution Is Significant

The study found that STR visitors generated a total economic impact of $787 million across the four counties in 2024, supporting roughly 4,600 jobs and over $185 million in wages. For Grand Traverse County specifically, STR visitors numbered nearly 300,000 and generated a $221 million economic impact. Leelanau County saw nearly 190,000 STR visitors and a $125 million economic impact. This spending flows into restaurants, retail, wineries, outdoor recreation businesses, and services throughout the region.

Do STRs Actually Drive Up Home Prices?

This is the question most buyers and community members ask, and the study's finding here is clear: in Grand Traverse and Leelanau counties, the analysis found no statistically significant effect of STR concentration on home sale prices. The study used MLS sales data from 2018 to 2025 combined with AirDNA STR listing data to build a rigorous pricing model. The result was that higher concentrations of STRs near a sale did not predictably push prices up or down in either county.

The average sale price in Grand Traverse County in 2024 was $543,441, and in Leelanau County $833,258. These are strong numbers, but the study's analysis indicates that the presence of STRs nearby is not a meaningful driver of those values. Home prices in this region are shaped by constrained supply, consistent out-of-state demand, and the inherent desirability of lakefront and near-water properties, not by the density of Airbnb listings.

What About Housing Supply?

The study also examined whether STRs are meaningfully removing homes from the long-term housing supply. The conclusion: STRs do not significantly take away from the existing housing stock. Based on STR availability patterns and housing type characteristics, the share of the housing stock that could realistically be converted from short-term rental use to long-term occupancy was just 1.7 percent in Grand Traverse and Leelanau counties. Many of these properties are second homes or vacation homes that would not enter the long-term rental or for-sale market even if STR platforms did not exist.

What Does This Mean for STR Regulations?

The study found that local ordinances placing caps or restrictions on STRs are unlikely to significantly depress home sale prices or slow appreciation. However, it also noted that STR bans or heavy caps would result in reduced visitor spending and economic activity in these communities. The report's conclusion is balanced: short-term rentals play a legitimate role in the regional economy, but communities should aim for regulations that maintain a healthy balance between visitor accommodation, housing availability, and neighborhood livability.

For buyers considering a property with STR income potential on the Leelanau or Old Mission Peninsula, the takeaway is practical: check the specific township's current ordinances before you buy, because regulations vary significantly across the region and continue to evolve. The broader county-level picture is supportive, but the details matter at the township level.

The Bottom Line for Grand Traverse Buyers

This study provides solid independent data on a topic that comes up in almost every investment property conversation in Northern Michigan. The key points for buyers to take away: STRs are not a significant driver of home price appreciation in Grand Traverse or Leelanau County. They do not meaningfully shrink the available housing supply. And they contribute hundreds of millions of dollars annually to the regional economy that supports the businesses and amenities that make this area worth owning property in. That is a useful foundation for making clear-eyed decisions about buying, holding, or operating a short-term rental on the peninsula.