FOR IMMEDIATE RELEASE
Park Township, Michigan, July 10, 2024 – According to a recent economic impact study conducted by The Frost Center for Data and Research, a ban on short term rentals (STRs) in Park Township would negatively impact local businesses. It also shed light on some common misconceptions about the effects of STRs on housing availability and prices.
The study found that a large majority of local business owners surveyed (69%) perceived short-term rentals as having a positive impact on past business, and (63%) expressed concern for the negative effects a short-term rental ban could have on their businesses. A majority of local restaurants and other food and beverage businesses surveyed indicated that 30-49% of their annual sales derived from tourism.
The impact of a ban on STRs would be felt in Park Township, the City of Holland, and beyond. Of those businesses participating in the study, 22% indicated owning a business in Park Township, while 53% of the businesses are located in the City of Holland. The remaining businesses were in nearby communities including Holland Charter Township, Zeeland, West Olive, Saugatuck and others.
While Park Township itself does not have a large number of restaurants and other commercial establishments, the potential impact of a ban should not be disregarded. Park Township residents regularly use the restaurants and stores in neighboring City of Holland and Holland Charter Township. The Frost economic study suggests a ban would negatively impact residents of all three municipalities. It is unclear how many restaurants would survive without tourism, or be able to be open year-round.
To a lesser degree, a ban on short-term rentals would also affect small businesses hired by property owners. The survey found that a significant portion of STR owners (39%) self reported paying $10,000 – $20,000 annually to individuals or companies. A majority (66%) of them predicted 75% to 100% of services contracted for their rental properties would be cut if a short-term rental ban was in place. Those affected would include services such as cleaning, lawn care, pool maintenance or home repairs.
“Local residents might not consider the effects that a reduction in tourism could have on their own day-to-day lives in terms of the restaurants, retail and service businesses they personally use,” said Jeremy Allen, President of Park Township Neighbors (PTN), a nonprofit representing more than 100 property owners in Park Township that support the regulation, rather than the prohibition, of short-term rentals. “In addition, we urge people to consider the effect that the loss of jobs could have for their friends, neighbors and families.”
The study also sought to better understand concerns that some residents have about short term rentals. One misconception is that most STRs are owned by large corporations, while in actuality the survey showed that a large majority (60%) of properties offered as short-term rentals are primary, secondary or seasonal vacation homes for their owners.
The study also challenged some assumptions about the effects that short term rentals have on housing availability and prices. According to the study, if a short-term rental ban is enacted per the outcome of pending litigation between Park Township Neighbors and Park Township, only 33% of STR owners said they would sell their property, while 40% would rent to longer-term tenants or keep it for personal use.
Since it’s estimated that there are between 150 and 248 properties in Park Township rented out short term, the study showed a ban would have a limited effect on housing availability. In terms of the effect that STRs have on real estate prices, the Frost Center projects that removal of all STRs in zip code 49424 could reduce rental prices by only 0.8% and housing prices by a mere 0.6%.
The Frost Center is a social science research center at Hope College that has conducted other local studies, including studies on the economic impact of Tulip Time. For this study, The Frost Center distributed online surveys to Park Township short term rental owners and local business owners located in the greater Holland, MI area, and also analyzed third party research. Full results can be viewed on the Park Township Neighbors website in the News section, or by using this link.
A significant portion of the cost of the study was contributed by the local, state, and national associations of Realtors.
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Media contact:
Jeremy Allen, neighbors@parktownshipneighbors.com
About PTN:
Park Township Neighbors (PTN) is a 501(c)(4) non-profit social welfare organization established by families, individuals, business owners, and community leaders working together to improve everyone’s experiences in Park Township. For more information, visit ParkTownshipNeighbors.com.