Introduction
Traverse City, Michigan, is a hidden gem nestled along the beautiful shores of Lake Michigan’s Grand Traverse Bay. Known for its stunning natural landscapes, vibrant cultural scene, and delectable culinary offerings, it’s no wonder that this picturesque city has become a hotspot for short-term rentals on platforms like Airbnb. In this blog post, we will delve into the thriving short-term rental market in Traverse City, providing valuable insights for both prospective hosts and travelers.
The State of Real Estate in Traverse City
Before we dive into the world of short-term rentals, let’s take a quick look at the real estate landscape in Traverse City. According to Zillow, home values in the city have appreciated steadily, with a median home value of $413,628. However, it’s important to note that homes have seen a 7.20% depreciation, which could have implications for potential property investors.
Short-term Rentals: A Lucrative Opportunity
Traverse City boasts a robust short-term rental market, with approximately 1,094 active listings, as reported by Chalet. These listings have an average daily rate of $252.30 and an occupancy rate of 52%, resulting in an impressive annual revenue of $51,800 for short-term rental property owners. The average gross yield, a key indicator of investment success, stands at a promising 12.52%.
Navigating Property Taxes
One critical consideration for anyone venturing into the short-term rental market is property taxes. In Traverse City, the average property tax rate is 1.31%, a factor that should be factored into your financial planning as a property owner.
