Detroit, Michigan (TAN): As in many cities all over the world, the high rates of vacation home rentals are pushing up rents for the local people at Traverse City in the state of Michigan, USA.
This is resulting in an increase in the number of homeless people, especially during the tourism peak in summer.
Paying heed to this concern, the Traverse City board of commissioners has come out with what seems to be a solution. The board passed an ordinance recently that will mean more red tape for vacation home owners starting this summer.
The ordinance will require vacation home owners to get a licence, a fire department inspection, and post exit signs, fire escape routes and noise ordinances.
Trevor Tkach, CEO of Traverse City Tourism, said the updated city ordinance was a way for the commissioners to make sure the tourism industry in town had longevity.
Traverse City’s popularity is growing every year and mayor Jim Curruthers told local news channel 9&10 News that the tourism industry obviously had an effect on local housing.
“We’re a vacation town and the vacation opportunities is a lot of our economy but we’re trying to be a four season town for young professionals,” said Carruthers.
While booming tourism is good for the economy, it can also have a negative impact on other parts of the community, such as the local homeless populace.
“The unintended consequence of the tourism industry is that homelessness increases based on rental prices and availability,” said Ryan Hannon, who runs Goodwill Inn’s homelessness outreach program. “We need to have a balance so we don’t drive rental prices up even higher.”
Hannon wants to see more balance so that the homeless are able to afford rentals as well. Twenty per cent of the homeless population in Traverse City rents vacation property in the tourism off season, but becomes displaced in the summertime when prices go north.
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