If you’re thinking about investing in Traverse City real estate, there’s never been a better time to act. We work with clients who want more than just a second home — they want properties that offer steady income, strong appreciation, or both. From vacation rentals to long-term holds, Traverse City has become one of the most desirable markets in the region. In this guide, we’ll highlight the top areas for smart real estate investments based on location, demand, and long-term potential.
Key Takeaways
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Traverse City’s mix of tourism and livability creates diverse investment opportunities
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Areas with walkability and lake access hold premium value
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Neighborhoods near downtown and The Commons show strong demand
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Clear investment goals help determine whether to buy for income, equity, or both
Why Traverse City Appeals to Investors
Traverse City’s reputation has grown far beyond its summer appeal. Year-round tourism, a strong local economy, and lifestyle-focused buyers all contribute to consistent demand for housing. Investors are drawn to this market not just for vacation rentals, but for multi-use properties that offer equity growth and flexibility.
What makes this city different is its balance: beautiful natural surroundings, a vibrant cultural scene, and a limited supply of prime real estate. That combination continues to drive pricing and keep quality investments competitive.
What makes this city different is its balance: beautiful natural surroundings, a vibrant cultural scene, and a limited supply of prime real estate. That combination continues to drive pricing and keep quality investments competitive.
What Makes Traverse City a Smart Market
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Year-round tourism driven by events, wine country, and lake access
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High demand for short-term, mid-term, and long-term rentals
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Low inventory in top locations helps preserve value
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Downtown and waterfront properties see consistent interest
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Increasing interest from out-of-area buyers looking to diversify
Whether you’re planning to rent, hold, or eventually resell, the right location can maximize your return.
Downtown Traverse City: Prime Location, Strong Demand
Downtown Traverse City remains one of the most in-demand areas for real estate investment. Its walkability, proximity to the bay, and vibrant business district make it a favorite for both tourists and long-term tenants.
Short-term rentals in this area often perform well, especially when they’re within walking distance of the waterfront or Front Street shops. Condos, townhomes, and low-maintenance properties are especially popular with out-of-town investors.
Short-term rentals in this area often perform well, especially when they’re within walking distance of the waterfront or Front Street shops. Condos, townhomes, and low-maintenance properties are especially popular with out-of-town investors.
What Downtown Offers Investors
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High occupancy rates for furnished rentals
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Easy access to restaurants, parks, and local attractions
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Strong resale demand due to limited housing stock
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Lower vacancy risk compared to more remote areas
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Ideal for buyers seeking short- or mid-term rental income
If you're looking for convenience, visibility, and walkability, downtown is a proven performer.
Slabtown: Historic Character with Long-Term Upside
Slabtown is one of Traverse City's most distinctive residential areas. Just west of downtown and near the West Bay shoreline, this neighborhood blends historic charm with walkable appeal. Recent demand has increased here due to its unique homes and neighborhood feel.
Properties in Slabtown tend to retain value well and may offer opportunities for updates that build equity. While short-term rental rules vary by property, long-term and mid-term rental demand remains strong.
Properties in Slabtown tend to retain value well and may offer opportunities for updates that build equity. While short-term rental rules vary by property, long-term and mid-term rental demand remains strong.
Why Slabtown Attracts Smart Buyers
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Tree-lined streets and vintage architecture offer strong curb appeal
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Close to beaches, parks, and the TART Trail
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Consistent demand for year-round housing and furnished mid-term rentals
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Limited new construction maintains neighborhood character
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Potential for equity growth in updated or expanded homes
For investors seeking a neighborhood with charm, accessibility, and staying power, Slabtown is worth exploring.
The Village at Grand Traverse Commons: Unique Appeal
The Village at Grand Traverse Commons stands apart as one of Michigan’s most notable mixed-use communities. Housed in the repurposed State Hospital buildings, this area includes condos, artisan shops, trails, restaurants, and open green spaces.
While not a high-density investment zone, The Village attracts buyers who want something different — and renters who are drawn to its blend of history and lifestyle. Inventory is limited, but when opportunities come up, they tend to go quickly.
While not a high-density investment zone, The Village attracts buyers who want something different — and renters who are drawn to its blend of history and lifestyle. Inventory is limited, but when opportunities come up, they tend to go quickly.
What Makes The Commons a Special Investment
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Distinctive architecture and historic design draw high-interest tenants
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On-site dining, markets, and walking paths add lifestyle value
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Condos and residential units offer turn-key options for seasonal or full-time use
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Proximity to downtown and Munson Medical Center supports long-term demand
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Limited inventory helps support appreciation over time
This is a great fit for investors who value uniqueness and low-maintenance ownership in a vibrant community.
East Side Neighborhoods: Quiet Investment Potential
Traverse City’s east side offers a quieter, more residential experience with a slower pace of appreciation — but steady long-term potential. These neighborhoods tend to attract year-round residents and are ideal for buy-and-hold investors seeking stability over quick turnover.
Homes here may offer better price-per-square-foot value compared to downtown or waterfront areas, and they’re close to trails, public beach access, and shopping corridors.
Homes here may offer better price-per-square-foot value compared to downtown or waterfront areas, and they’re close to trails, public beach access, and shopping corridors.
Why East Side Areas Appeal to Buy-and-Hold Investors
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More affordable entry points for long-term rental properties
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Steady demand from local residents and year-round tenants
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Opportunity to renovate older homes for increased equity
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Lower seasonal vacancy risk compared to vacation zones
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Proximity to East Bay and arterial roads for convenience
This side of town offers good options for investors who prefer stability and fewer management challenges.
Bonus: Leelanau Peninsula for Vacation Properties
Just outside of Traverse City, Leelanau County towns like Suttons Bay, Glen Arbor, and Leland offer serious vacation rental potential. These areas are known for their natural beauty and resort-town feel, which keeps short-term rental demand high — especially during summer and fall.
What Leelanau Offers for Seasonal Investors
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Premium pricing for lakefront or near-lake properties
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Strong occupancy during high season with extended shoulder bookings
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Proximity to wineries, trails, and destination wedding venues
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Potential for dual use: personal retreat + seasonal income
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Distinctive charm draws repeat renters and long-term value
While not Traverse City proper, Leelanau investments can be managed as part of a broader northern Michigan strategy.
FAQs
Are short-term rentals allowed in all parts of Traverse City?
No — rules vary by neighborhood and zoning. We can help you identify properties where short-term rentals are permitted or feasible.
How competitive is the market for investment properties?
Well-located homes, condos, and multi-use properties often receive multiple offers. A clear strategy and quick action are key.
Is it better to buy in Traverse City or in the surrounding towns?
It depends on your goals. Traverse City offers stronger year-round demand, while nearby towns may offer better seasonal income potential.
Contact Us Today
If you're ready to explore real estate investment opportunities in Traverse City, we’re here to help you make confident, informed decisions. Whether you're just getting started or looking to expand your portfolio, we’ll guide you through each step with local expertise and a strategic mindset.
Connect with us at Blue Lakes Real Estate Group — and let’s find an investment that fits your goals, timeline, and vision for long-term success in northern Michigan.
*Header by Blue Lakes Real Estate Group
Connect with us at Blue Lakes Real Estate Group — and let’s find an investment that fits your goals, timeline, and vision for long-term success in northern Michigan.
*Header by Blue Lakes Real Estate Group
