Short Term Rentals Surge Then Stall in Northern Michigan Market

The Ticker published an in depth, data driven examination of short term rentals across the northern Michigan north coast region on November 12, 2025, reporting about 9,130 listings in August 2025 based on AirDNA analytics. The analysis finds that approximately 40 percent of those rentals are available year round, and that listings grew by about 39.7 percent between August 2021 and August 2025. July 2025 produced record demand, with occupancy and average daily rate both peaking and the average daily rate reaching about $445.91.

Those headline numbers matter for Grand Traverse County because they connect directly to housing supply, local incomes from tourism, and the stresses that come with a high concentration of short term rentals. High summer occupancy and elevated nightly rates concentrate revenue in the peak season, improving returns for property owners while also increasing the opportunity cost of keeping units off the longer term rental market. The data showing roughly two fifths of properties offered year round suggests a significant portion of inventory competes with long term housing all year, rather than simply supplementing seasonal visitor stays.

The report also documents a shift in the growth trajectory. Listings increased rapidly in the early post pandemic years, but growth appears to have plateaued since 2023. The Ticker notes that new local rules are a likely contributor to that leveling off. For local policymakers and planners in Grand Traverse County, that points to the tangible effect of regulation on supply dynamics. Rules that restrict or regulate short term rentals can slow the conversion of housing into visitor units, affecting the availability and affordability of long term housing options.

From an economic viewpoint, the high average daily rate observed in July 2025 underscores the strength of summer tourism demand. An ADR near $446 elevates taxable lodging receipts and seasonal income for homeowners who rent, but it also inflates effective housing costs for residents if more properties shift away from the long term market. Occupancy spikes further accentuate the seasonal nature of local economies, placing pressure on public services in high season and on employment stability in the shoulder months.

For Grand Traverse County residents and leaders, the Ticker analysis is a useful resource for balancing tourism economics, housing policy, and community priorities. The data provide a clearer picture of how many units are in the market, how many are available year round, and how market forces have interacted with regulatory responses. As conversations continue about zoning, licensing, and taxes, these empirical findings will be central to assessing trade offs between visitor revenue and the housing needs of year round residents.