Graphic courtesy of Visit Keweenaw The chart demonstrates short-term rental property listings by month in Houghton and Keweenaw counties, relative to residential properties listed for sale (by month) in the same geographic area. The chart correlates a depletion in available housing stock that could be used for new residents (long-term rentals or new home ownership).

By GRAHAM JAEHNIG

gjaehnig@mininggazette.com

HOUGHTON COUNTY — As areas like Calumet Township seek to increase manufacturing and professional economic development, that growing financial sector is facing several challenges posed by the long-standing tourism industry. In both economic sectors, housing, whether short- or long-term is a key element. Defining “short-term rental” is something the state has seemed reluctant to address.

The state of Michigan has no set definition of what constitutes a short-term rental. The website of Sinas Dramis Law Firm states that in Michigan, local ordinances are allowed to determine whether short term rentals are allowable within city limits or not.

The website says that in October 2018, the Michigan Supreme Court published a decision that upheld the right of local ordinances to allow or restrict short term rentals.

“In short,” the law firm advises, “landlords need to check with their local ordinances to see what is allowable and what isn’t.”

However, not all STR owners in the Copper Country follow that advice.

Executive Director of Visit Keweenaw, Brad Barnett says that “short-term rental” can mean a lot of different things.

“That’s what makes it a challenge when we have these community-level conversations and explicitly ‘what are we talking about?'” said Barnett.

For instance, he said the Keweenaw Waters Resort, located on the Houghton Canal Road, is new development. The purpose of building those properties, Barnett said, was to specifically to target travelers. The new development is adding inventory to the market.

Whereas, what has been the trend historically in the Copper Country is transitioning single-family homes to short-term rentals.

“That likely, then, impacts the amount of housing stock — that supply — for folks who are looking to relocate here permanently,” Barnett explained.

Short-term rental business is a fluid market, said Barnett. There is no question that it impacts traditional short-term lodging facilities like hotels, motels and resorts.

“Visitors are creatures of habit,” he said. “They’re looking for different types of products. Some of them are more likely to stay in one type of property than the other, but there are key points and times in the year in the Keweenaw when everything is booked.”

This is where the STR v. Housing starts to become complex. While on the one side, STRs provide short-term availability for those fueling the tourism industry, but on the other, STRs are creating a shortage of housing for potential permanent residents, which in turn is hindering development and expansion in the growing manufacturing and professional sector.