Traverse City

As of May 2026, Traverse City, Petoskey, Charlevoix, Sleeping Bear Dunes have 5,888 active Airbnb and VRBO listings. This represents a 2% decrease from the previous year.

The average Airbnb or VRBO in Traverse City generates $36K per year. High-performing properties earn $83K/year, while low-performing properties earn $18K/year. The substantial disparity between top-tier and average earnings suggests that revenue potential is heavily concentrated in a select group of listings rather than distributed evenly across the market.

Average home prices in Traverse City vary by property size: 1-bedroom properties cost approximately $296K, 2-bedroom homes average $204K, 3-bedroom properties are around $299K, and 4+ bedroom homes average $456K. These prices reflect median home values across the Traverse City, Petoskey, Charlevoix, Sleeping Bear Dunes area.

Airbnb and VRBO can be profitable in Traverse City, with an average gross yield of 11% across all properties. High-performing properties achieve yields up to 25%, which is considered top for short-term rental investment. Such a wide yield gap highlights that market profitability is currently driven by specific asset positioning rather than broad-based performance.

The average occupancy rate for Airbnbs and VRBOs in Traverse City is 30%. This occupancy level, combined with an average nightly rate of $309, results in a RevPAR (revenue per available room) of $65 per day.

2-bedroom properties demonstrate the strongest performance in Traverse City, with an average gross yield of 14% and annual revenue of $32K. These properties balance purchase price ($204K), operating costs, and rental demand most effectively in the Traverse City market.

Short-term rental regulations vary by jurisdiction in the Traverse City area. Traverse City: Moderate. Registration required, safety inspections, 3% lodging tax. Zoning restrictions in residential areas. Moderate enforcement with complaint-driven action. Petoskey: Moderate. Business license required, zoning compliance, life safety inspections. No owner-occupancy rule. Enforcement through complaints. Charlevoix: Lenient. Business license and lodging tax collection required. Minimal zoning restrictions. Light enforcement, mostly complaint-based. Sleeping Bear Dunes: Strict. National Park Service prohibits STRs on park land. Surrounding townships vary; Empire Township requires permits with strict limits. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Traverse City Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 2% year-over-year, while RevPAR has decreased 35%. This indicates balanced supply-demand dynamics. The sharp decline in revenue despite stable supply suggests that consumer spending patterns are shifting, putting downward pressure on earnings even without an influx of new competition.

Launch around April, 2-3 months before peak summer season (July peaks). This pre-peak timing lets you build reviews when competition is 66% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (January-March) when gaining traction is harder.

The most common amenities in Traverse City listings include: Kitchen (93%), Air Conditioning (86%), Tv (79%), Washing Machine (69%), Heating (58%). Amenities that boost revenue the most include Washing Machine, Hot Tub, Lake Access, with Washing Machine properties earning approximately 41% more ($64K/year vs $45K/year).

Monthly estimated revenue per listing in Traverse City over the last 12 months: May: $2K, June: $3K, July: $5K, August: $4K, September: $2K, October: $2K, November: $1K, December: $1K, January: $898, February: $846, March: $727, April: $851. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Traverse City is $309, up 11% year-over-year. By property size: 1-bedroom properties average $186/night, 2-bedroom properties average $251/night, 3-bedroom properties average $341/night, 4+ bedroom properties average $583/night. Rates peak in July and are lowest in March.

Guests in Traverse City book an average of 38 days in advance, down 19% from last year. By property size: 1-bedroom: 33 days, 2-bedroom: 37 days, 3-bedroom: 40 days, 4+ bedroom: 46 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Traverse City Airbnb and VRBO market has seen the following changes: supply declined 2%, revenue per listing decreased 35%, occupancy fell 13%, average nightly rates increased 11%, and lead time decreased 19%. These indicators point to a contraction in travel demand, as shorter lead times and lower occupancy suggest guests are booking later and less frequently despite higher asking prices.

In Traverse City, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Saturday and are lowest on Wednesday. Weekends show 60% higher occupancy than weekdays.