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Traverse City commissioners weigh short-term rental regulations, direct staff to gather legal and market data
Summary
At a study session, commissioners discussed a rise in licensed short-term rentals, possible regulatory tools (ownership limits, operational rules, incentives to convert units to long-term housing) and asked staff for a legal review and updated data; no formal action was taken.
Commissioner Anderson opened a study-session discussion April 14 on short-term rentals in Traverse City, saying the Planning Department reported 542 licensed short-term rentals in 2024 — roughly 6.4% of the city’s estimated 8,400 dwelling units — and asked whether the commission wanted an ad hoc committee to explore possible changes to the city’s regulations.
The topic matters because commissioners and residents said short-term rentals can affect housing supply, neighborhood character and municipal costs. Anderson noted new licenses rose from 34 in 2023 to 101 in 2024, while renewals increased modestly from 419 to 438, and pointed to several regulatory options used elsewhere: owner‑residency requirements, limits on number of units owned, higher permit fees, minimum-stay rules, hosted-only stays and conversion incentives such as Sedona’s one-time payments to convert units to long-term rentals. Anderson also said a state…
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