Short-Term Rentals Boost Wisconsin's Economy

How Short-Term Rentals Boost Wisconsin’s Economy Despite Local Roadblocks

For more than seven years, Wisconsin’s right to rent law has been a game-changer for property owners and local communities. Enacted in 2017, this law ensures that local governments cannot outright ban short-term rentals of seven days or longer, while still allowing for reasonable regulations. This policy has opened the door for increased tourism and economic growth across the Badger State, helping to preserve Wisconsin’s natural beauty and charm while supporting property rights.

However, local governments continue to challenge this law, attempting to impose restrictive ordinances that create unnecessary roadblocks for property owners and limit opportunities for economic growth.

The Economic Power of Short-Term Rentals

Short-term rentals are a cornerstone of Wisconsin’s booming tourism industry. In 2023, Wisconsin’s tourism sector reached impressive milestones:

• $25 billion in total economic impact, marking a 5.4% increase from the previous year.

• 113 million visitors, including 46 million overnight stays, breaking records for the second year in a row.

• Visitors opting for overnight stays spend, on average, three times more than day travelers.

This economic growth is felt across the state. All 72 counties in Wisconsin saw increased economic benefits from tourism in 2023, with over $1.6 billion generated in state and local tax revenue.

While hotels remain a popular option, many travelers prefer the flexibility, space, and amenities offered by short-term rental properties. Whether it’s a family seeking a cozy cabin near a lake or a group of friends booking a spacious home for a weekend getaway, short-term rentals meet diverse needs while generating substantial revenue for local businesses.

Here in Hudson, WI, short-term rentals are especially valuable. As a gateway to the stunning St. Croix River Valley, Hudson attracts visitors from across the Midwest looking for relaxation, outdoor recreation, and charming small-town experiences. Short-term rentals provide visitors with convenient, unique accommodations while supporting local businesses, from restaurants to shops and outdoor attractions.

Local Challenges to Short-Term Rentals

Despite their clear economic benefits, short-term rentals face growing opposition from some local governments. These restrictions are often fueled by misconceptions about the impact of short-term rentals on communities, including claims that they:

• Reduce housing stock

• Cause community disruptions

• Contribute to property blight due to poor management

While these concerns may be well-intentioned, they are largely anecdotal and unsubstantiated. Restricting short-term rentals not only harms property owners but also stifles local economies by limiting tourism-related spending and tax revenue.

For property owners in Hudson and surrounding St. Croix Valley communities, these local roadblocks can be frustrating. Short-term rentals are a vital part of the local economy, offering a much-needed boost to tourism and business while providing opportunities for homeowners to capitalize on their investments.

Protecting Property Rights and Supporting Local Economies

The Wisconsin REALTORS® Association (WRA) is currently engaged in 14 lawsuits across the state, challenging local governments for imposing ordinances that violate Wisconsin’s right to rent law.

The WRA’s Legal Action Program views these efforts as critical to protecting property rights for all homeowners, not just short-term rental owners. By advocating for fair regulations, the WRA aims to ensure short-term rentals continue contributing to Wisconsin’s economic success.

To learn more about Wisconsin’s right to rent law, you can read the official statute here (Wis. Stat. §66.1014).

Moving Forward

Short-term rentals play a vital role in supporting Wisconsin’s tourism-driven economy. For homeowners in Hudson, WI, and across the St. Croix Valley, short-term rentals offer opportunities to maximize property value and support local businesses. While challenges remain, protecting property rights and promoting fair regulations will ensure that these rentals continue to benefit local communities, property owners, and visitors alike.

At The Johnson Group, we specialize in real estate opportunities in Hudson and the surrounding St. Croix Valley. If you’re considering buying or selling a property that could be used as a short-term rental, we’re here to help you navigate the process and unlock your property’s full potential.

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https://www.johnsonhomegroup.com/listing

Stay informed and check out our latest insights on real estate trends, property rights, and opportunities in Hudson, WI. Contact us today at 651-333-7656