Short-Term Rentals in Michigan: What the Data Shows (And What Wexford County Can Learn)

By Stacy Zirkle, Realtor® | Cadillac, Michigan

Short-term rentals (STRs) are one of the most discussed housing topics in Michigan today. Homeowners, buyers, local officials, and residents alike are asking important questions: Do short-term rentals drive up home prices? Do they reduce housing supply? And how do they impact local economies?

To help answer these questions with facts instead of assumptions, Michigan Realtors® commissioned an independent study by Anderson Economic Group examining the impact of short-term rentals in four Michigan counties: Allegan, Berrien, Grand Traverse, and Leelanau.

While this study does not focus on Wexford County specifically, it provides valuable insight into how short-term rentals interact with housing markets across Michigan—particularly in regions with tourism, seasonal homes, and growing demand.

According to the report, vacation homes and short-term rentals are an important driver of local economies in the counties studied. The findings emphasize that STRs are part of a healthy housing ecosystem when managed thoughtfully.

The report also stresses the importance of balance. Local ordinances and housing policies should aim to support residents, homeowners, and economic activity—not favor one group at the expense of another.

Do Short-Term Rentals Increase Home Prices?

One of the most common concerns surrounding short-term rentals is whether they make homes less affordable.

The study found that the impact of short-term rentals on home sale prices was small overall:

• Higher concentrations of STRs were associated with higher sale prices in only one of the four counties studied

• In the remaining counties, STRs had no statistically significant impact on home prices

For example, in Allegan County, the estimated price impact was approximately 2.7%, or about $11,000 on an average home sale—a relatively modest portion of total home value.

These findings suggest that short-term rentals are not a primary driver of rising home prices in most Michigan markets.

Housing Supply and Long-Term Availability

Another key takeaway from the report is how limited the housing supply impact of STRs actually is.

Although the counties studied have a high number of seasonal and vacation homes, the analysis found that less than 2% of total housing stock currently used as short-term rentals could realistically be converted to long-term housing—even under ideal conditions.

This highlights an important reality: Michigan’s housing challenges are complex. New construction, zoning, workforce housing, and population shifts all play a role, and short-term rentals alone do not explain housing shortages.

Economic Impact of Short-Term Rentals in Michigan

Where short-term rentals clearly stand out is their contribution to local economies.

In 2024, across the four counties studied:

• STRs accommodated approximately 1.2 million visitors

• Visitor spending generated a total economic impact of $787 million

• Local businesses, service workers, and tourism-related industries directly benefited

Short-term rentals also provide flexible lodging options that complement hotels, helping communities accommodate peak travel demand while supporting small businesses.

What This Means for Wexford County and Northern

Michigan

Although Wexford County was not included in this study, the findings offer meaningful lessons for communities across Northern Michigan.

As housing conversations continue locally, it’s important to rely on data-driven research rather than assumptions. The experience of neighboring counties shows that short-term rentals are neither inherently harmful nor a complete solution—they are simply one part of a broader housing and economic landscape.

As a Cadillac-based Realtor, my goal is to stay informed on statewide and regional housing trends so I can better serve buyers, sellers, investors, and homeowners here in Wexford County.

Read the Full Michigan Realtors® Report

For those interested in reviewing the full data and methodology, the complete report is available here:

https://www.mirealtors.com/portals/0/documents/FINAL%20AEG_STRs_Impacts_Report_Nov2025_compressed.pdf

If you have questions about short-term rentals, housing trends, or the local real estate market in Cadillac or Wexford County, I’m always happy to help.