Seasons Change, So Must We

Guest Opinion

As a region that thrives on seasonal tourism, we are starting to notice a change in the air. There is anticipation building as we prepare for the return of tourists and seasonal residents. However, this shift brings some significant challenges. Our local restaurants, shops, hotels, farms, parks, and construction sites need workers, and those workers need housing.

Without adequate housing options for our workforce, our economy suffers. Restaurants become short-staffed, leading to longer wait times and reduced hours. Retailers have to close up shop earlier, and farmers are stretched thin. Builders are struggling to find skilled labor, which drives up construction costs. Hotels struggle to fill essential roles that keep everything running smoothly.

For those who work in these critical positions, finding a place to live that is stable and within financial reach has become more of a challenge. Housing prices are at an all-time high, and there is more competition for the limited supply of lower-priced homes. The wave of tourists continues to grow, as do those who buy second homes or investment properties.

As seasonal and tourist demand for real estate increases against the backdrop of a limited housing supply, our cities and towns must take action if we wish to support the health and well-being of those working in the community and have a strong economy. Action must be taken to preserve and create housing that is affordable to low and middle-income residents.

Municipalities that see high levels of seasonal tourism must prioritize the development of safe and affordable housing for both year-round residents and temporary workers. We can learn from how other communities tackle these housing challenges. Here’s a look at strategies used by towns across the country with seasonal economies.

In regions with high-cost second-home markets, real estate transfer taxes can be an effective revenue source for municipalities. The funds collected from these taxes can be utilized for various affordable housing efforts. These taxes can be implemented progressively, meaning they only apply to home sales that exceed a certain price threshold.

When these funds are directed toward housing programs, they can help diminish wealth inequalities and promote fairness in housing access. A prime example is Santa Fe, New Mexico, where voters approved a three percent tax on single-family homes sold for more than $1 million. This tax is anticipated to generate approximately $6 million annually, which will contribute to Santa Fe’s Affordable Housing Trust Fund, aiding in the development of new homes for low and middle-income families.

In Florida, certain areas are authorized by the state to enact “Tourist Impact Taxes.” as a response to its large tourism industry. Monroe County, home of the Florida Keys, has been implementing a Tourist Impact Tax since 1986. The tax is charged as one percent of any sales from overnight accommodations of less than six months. Half of the tax funds the Monroe County Land Authority, which is dedicated to acquiring property for conservation use, funding affordable housing projects, and maintaining conservation land stewardship programs in the county.

The Michigan State Housing Development Authority recently launched the Employer-Assisted Housing Fund. The Housing Fund is a bold, state-funded initiative designed to help employers invest in housing solutions for income-eligible households. 

The fund offers direct support to employers willing to invest in housing for local workers. Employers that contribute matching funds—whether through cash investments, land donation, a below-market interest loan, or some combination thereof—may qualify for resources through the fund to help develop new housing options.

Grand Traverse Resort and Spa is taking a proactive approach to address the need for more employees. They recognize that having the space to house additional employees during peak season is crucial for maintaining service levels and keeping amenities open. Having on-site housing allows the resort to bring in more workers, including those for higher-level roles like supervisors and managers. The resort has a variety of buildings dedicated to employee housing, including apartments, a house, and other dorm-style buildings, providing accommodations for around 100 employees. 

Our region is facing unique challenges ensuring housing availability for both full-time residents and seasonal workers. To improve our economy and the quality of life for those employed in the area, we must explore innovative avenues to provide affordable housing. Implementing strategies like real estate transfer taxes, short-term rental fees, and tourist impact taxes can generate essential revenue for affordable housing initiatives.

Moreover, preserving existing affordable housing through measures such as deed restrictions and collaborations with local employers can ensure that the workforce has access to affordable housing. By focusing on the development and preservation of affordable housing, municipalities can alleviate the adverse effects of seasonal tourism and support the long-term health of their communities.

Ultimately, policymakers, municipalities, developers, and employers need to collaborate to develop innovative strategies to create housing and invest in sustainable solutions.

Shelly Charron is the Director of Community Engagement at Housing North, a regional nonprofit in northwest Michigan working to address the barrier to housing through communications, advocacy, and capacity building.

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