A new independent study of four major Michigan vacation markets offers an interesting picture of how short-term rentals shape the local economy—and Berrien County stands out as a strong example of both economic benefit and housing stability.
Commissioned by Michigan Realtors® and conducted by the Anderson Economic Group, the analysis looked at Allegan, Berrien, Grand Traverse, and Leelanau counties—communities where seasonal visitors, lakefront amenities, and small-town charm drive the regional economy. Together, the four counties attracted more than 1.2 million visitors to short-term rentals last year, generating $592 million in direct visitor spending and a total economic impact of $787 million in 2024.
Just as noteworthy for local leaders: the study found no measurable link between short-term rentals (STRs) and rising home prices in Berrien County.
Berrien County: Small STR Footprint, Big Visitor Impact
At first glance, the numbers show why STRs play a steady role in the local lodging mix—but not an oversized one.
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3.4% of all homes in Berrien County operate as short-term rentals
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10.8% are classified as seasonal homes
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Less than 2% of STR properties countywide could realistically be converted into year-round housing, given size, age, and location
Those figures mirror Allegan County and sit far below northern markets such as Leelanau, where STRs make up more than 13% of the housing stock.
In other words: Berrien’s STR presence is meaningful, but modest.
That modest footprint still brings major dollars. Visitor spending on dining, groceries, shopping, attractions, wineries and breweries, and recreation helped support 4,600 jobs across the four-county study region—and Berrien County, with its lakefront towns and steady summer demand, is a major contributor.
Housing Prices: Data Counters a Long-Held Assumption
One of the loudest narratives in recent years has suggested STRs price out local residents by inflating home values. The study doesn’t support that claim.
AEG found no evidence that short-term rentals contributed to higher home sale prices in Berrien, Grand Traverse, or Leelanau counties.
Allegan County was the lone outlier, with just a 2.7% connection to higher sale prices—a sliver of a home’s overall value.
The broader conclusion lands squarely:
Restricting or banning STRs is unlikely to slow housing price growth in Berrien County.
That has implications for local conversations in places like:
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St. Joseph, where STR policies have remained steady but continue to be monitored
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South Haven,, where STR debates have been especially intense for more than a decade
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Several lakefront townships where concerns about neighborhood character and housing supply frequently surface
While the study does not wade into politics, it clearly notes that STR caps or bans would not create the affordability shift some residents expect.
A Larger Tourism Ecosystem—And a Local Opportunity
For a region that markets itself as “Michigan’s Great Southwest,” the study underscores a longstanding truth: visitor-driven activity is part of the local economic engine.
“Short-term rentals bring about 1.2 million visitors, who generate significant spending and economic impact in the four counties,” said Cristina Benton, director of market and industry analysis at AEG. She notes that STRs provide lodging types traditional hotels simply can’t—especially large homes preferred by extended families and long-stay guests.
Real estate groups, including the Southwestern Michigan Association of Realtors®, point to a different challenge: the need for more overall housing.
“Housing demand is strong in many of these communities,” said CEO Luke Jeffries, “so more housing development of various types and price points is needed. Communities should consider modifying or expanding housing policies that encourage residential development.”
The study supports that practical approach. STRs may be part of the discussion, but they are not the solution—or the cause—of the county’s housing pressures.
What This Means for Berrien County Going Forward
Taken together, the findings give local officials, residents, and business leaders something they’ve long asked for: a data-driven snapshot of how STRs actually function in our local economy.
A few takeaways stand out:
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STRs generate substantial visitor spending that flows directly to local businesses.
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Their share of the total housing stock is relatively small in Berrien County.
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They do not appear to drive home price increases here.
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Policies designed to curb STRs are unlikely to ease housing costs in a meaningful way.
That doesn’t diminish the importance of thoughtful local regulation—especially in neighborhoods where quality of life, infrastructure, and enforcement remain real concerns. But it does provide a wider lens as Berrien County communities continue to balance year-round livability with the region’s deep tourism heritage.
And with new data in hand, the conversation can move beyond assumptions and into what this area has always done well: finding a steady path forward that keeps both residents and visitors returning to Michigan’s Great Southwest.
