News Bite

Lobbyist For Michigan Cities: Let Us Ban Airbnb Or Property Values Will Rise

The head of the state organization that lobbies on behalf of Michigan cities, townships and villages has advanced an unusual argument in opposing a bill that would permit local governments to restrict but not ban Airbnb-type rentals: The legislation might raise local property values.

The Michigan Municipal League wants its members to be able to ban Airbnb rentals, not just regulate them. In arguing against a bill that would forbid outright bans but permit restrictions, the head of the group said the legislation will bump up property values.

Dan Gilmartin, the organization’s CEO, stated, “This calamity is entirely avoidable. This bill will pour lighter fluid on an already red-hot housing market should it become law, making it even harder for families to put roofs over their heads.”

Oddly, the local governments that are members of the Michigan Municipal League rely on property values to support property tax levies — a major part of their annual revenue.

In 2020, Michigan municipalities collected $4.17 billion in property tax revenue, up 4.5% from the previous year’s amount of $2.64 billion.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.