Chart courtesy of Visit Keweenaw This chart shows the increase in available STR listings from 192, in 2019, to 489 in 2025. According to a new report by Visit Keweenaw, the local STR market is still growing albeit at a slower pace than previous years.

HOUGHTON — The short-term rental (STR) economy in Houghton and Keweenaw counties experienced exceptional year-over-year (YoY) growth from 2024 to 2025, according to a newly-released report by Visit Keweenaw. Generating nearly $16.9 million in revenue in 2025, the region drastically outperformed statewide and regional averages in revenue growth.

According to the report, between 2021 and 2025, the market added roughly 200 new STR units, growing to 489 active listings. As new properties came online faster than new tourists arrived, occupancy naturally corrected downward, bottoming out at 51.3% in 2024. This was a healthy normalization, not a reduction in overall visitation, the report says.

The narrative that the STR market “peaked” during COVID is false for the Keweenaw Peninsula, the report states. While occupancy percentages peaked in 2020 due to limited housing stock, the actual economic footprint of the market has never been larger. Today, the region accommodates nearly 300% more booked nights than it did in 2019, and total visitor spending on lodging has more than quadrupled.

While the increase in STRs has benefited the economy, it has also caused negative impacts.

Visit Keweenaw Executive Director Brad Barnett said that while the Keweenaw’s STR market has reached a new level of maturity, a major opportunity still remains for the community.

“Most local (STR) rentals don’t currently collect the room assessment that powers our festivals, events, and destination development,” Barnett said. “We invite these owners to voluntarily join us; by doing so, they directly reinvest in the trails, culture, and marketing that make our region a world-class destination.”

The Western Upper Peninsula Planning and Development Region (WUPPDR), has also pointed out negative impacts created by STRs.

WUPPDR Regional Planner Lisa McKenzie presented statistics regarding the cost of homes from 2015 to 2024 within Houghton County at a presentation of a Keweenaw Chamber of Commerce Wake Up Keweenaw event in Houghton last April. She said the average list price in 2015 was $109,821 and the average 2024 listing price was $225,000. Average sale prices increased by 214 percent from 2015 to 2024. The statists she presented reflect only structures listed and sold by realtors and do not include private transactions.

Houghton Housing Commission Executive Director Sherry Hughes said at this time the area’s affordable housing units are at capacity with an increasing waiting list. She said there has been a focus on trying to create affordable housing for median income citizens.

According to a WUPPDR housing study published in August, 2022 and updated in Feb. 2024, the number of STRs throughout the region has increased greatly since 2016. Most of the increase has

been due not to new construction but to conversion of existing housing units that were previously occupied as permanent residences. Thus, STRs have the effect of reducing the housing stock available to full-time residents. This also can detrimentally impact community cohesiveness.

WUPPDR’s study found that STRs accounted for 28.5% of all housing units and more than three-quarters of vacant units in the region in 2022.

“The SRTU category likely includes most properties that are primarily used as short-term/vacation rentals,” the study says, “but not those for which this use is secondary (e.g. rented out for an occasional weekend).”

The study revealed more than 20 respondents indicated housing market difficulties had increased since the start of the pandemic. Several mentioned the difficulty of finding quality rental units specifically, some attributing this to short-term rental conversions and purchasers from outside of the local area.

This week’s Visit Keweenaw report concluded with a cautionary statement:

“Avoid relying entirely on the free market for workforce housing, the report says. Because tourism yields are so high, the private real estate market will naturally prioritize short-term rentals over residential housing.”