As communities across Northern Michigan continue to wrestle with the balance between housing availability, tourism, and quality of life, data-driven insight is more important than ever. A recent independent economic analysis commissioned by Michigan REALTORS® takes a closer look at how short-term rentals (STRs) interact with local housing markets and economies—offering clarity to a conversation often shaped by perception rather than facts. The findings provide a valuable lens through which to better understand Leelanau County’s unique housing landscape and visitor economy.
1. Leelanau Has a High Share of Seasonal Homes—Long Before STRs
Leelanau County stands out for its long-established pattern of seasonal and second homes. About 33.5% of all housing units are classified as seasonal or recreational, a share that has remained relatively stable over the past decade. This indicates that vacation housing is a structural characteristic of the county—not a recent phenomenon driven by short-term rentals.
2. Short-Term Rentals Represent a Minority of Housing Stock
While Leelanau has more STRs proportionally than other counties studied, STRs account for roughly 13% of total housing units, which is still far fewer than seasonal homes overall. Importantly, many STRs are owner-used for part of the year rather than operating as full-time rentals.
3. Only a Small Fraction of STRs Could Convert to Long-Term Housing
The report finds that just 1.7% of Leelanau’s housing stock consists of STRs that are both available most of the year and suitable—by size and type—for conversion to long-term housing. This suggests that even eliminating STRs would have a limited effect on addressing housing shortages.
4. STRs Do Not Significantly Impact Home Prices in Leelanau
Unlike in some markets, short-term rentals were not found to have a statistically significant impact on home sale prices in Leelanau County. Home values appear to be driven more by broader demand, limited supply, and location desirability than by STR concentration.
5. STR Visitors Deliver Meaningful Economic Benefits
In 2024 alone, nearly 190,000 visitors stayed in STRs in Leelanau County, generating about $125 million in total economic impact. That spending supported 765 local jobs and contributed directly to restaurants, retailers, wineries, and recreation-based businesses throughout the county.
