🎯 STRisker: Bulletin - Traverse City, MI

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Traverse City Puts the Brakes on New STRs

Traverse City is drawing a new line in the sand when it comes to short-term rentals—and it could be a game-changer for both residents and property owners.

In a recent public hearing, the city’s Planning Commission proposed a series of caps on new short-term rentals in seven zoning districts, signaling a major shift toward prioritizing long-term housing.

The most eye-catching part of the plan? A dramatic reduction in how much of a dwelling can be used for short-term stays. In the D-1 Development District, where currently 100% of a unit can be rented short-term, the proposed change would slash that number down to just 25%. Over in the C-3 Community Center District, a 35% limit would replace the current free-for-all. And in the C-4-A Regional Center District, the cap would land at 50%.

Planning Director Shawn Winter clarified that the proposed changes would not impact existing short-term rental licenses. “This is about preventing the proliferation of new STRs—not punishing current operators,” he said, likening the situation to owning a grandfathered gas station that remains viable even after zoning changes.

Still, not everyone is thrilled. Some property owners voiced concern over the potential drop in property values, arguing that removing the possibility of future STR use could hurt resale prospects. One resident warned,

“If I were not able to resell with a short-term license, that would hurt me at a big detriment with this development.”

Despite the concerns, city leaders remain focused on their bigger goal🏆increasing long-term housing supply. The cap proposal is now heading to the City Commission for final review.

Vacation Home Rental License Application : City of Traverse City

City of Traverse City

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