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

If you’ve been keeping an eye on the Hudson, WI real estate market, you’ve likely noticed the growing interest in short-term rentals. Since 2017, Wisconsin’s “Right to Rent” law has allowed property owners to rent their homes for seven days or more—without local governments banning them outright.

This policy has opened doors for homeowners and driven tourism growth statewide. But some local communities are still trying to push back, creating unnecessary restrictions that may end up hurting the very communities they’re trying to protect.

Let’s break down what’s really happening—and why it matters.

The Economic Boost of Short-Term Rentals

There’s no denying it: short-term rentals play a huge role in Wisconsin’s tourism economy. Just look at the numbers from 2023:

• $25 billion in total economic impact (a 5.4% increase from the year before)

• 113 million visitors, with 46 million staying overnight

• Overnight guests spend 3x more than day-trippers

• All 72 counties saw tourism-related economic growth

• Over $1.6 billion generated in local and state tax revenue

Whether it's a lakeside cabin, a downtown condo, or a historic home in Hudson, WI, short-term rentals give travelers a flexible, often more affordable alternative to hotels—while putting money directly into local communities.

Why It Matters in Hudson and the St. Croix Valley

Hudson isn’t just a pretty river town—it’s a destination for people all across the Midwest.

Short-term rentals here provide:

• Unique accommodations steps from downtown Hudson

• Easy access to the St. Croix River for boating and hiking

• More revenue for local businesses like cafes, boutiques, and outdoor outfitters

• Investment opportunities for local homeowners

If you're moving to Hudson or looking to invest in homes for sale in the Twin Cities, short-term rental potential should be part of the conversation.

Local Pushback and Misconceptions

Despite the benefits, some local governments have tried to clamp down on short-term rentals. Common concerns include:

• Reduced availability of long-term housing

• Increased noise or neighborhood disruptions

• Poorly maintained rental properties

But here’s the thing—most of these concerns are based on isolated incidents, not widespread problems. And overly strict local ordinances could:

• Limit tourism spending

• Cut into tax revenue

• Infringe on homeowners' property rights

Standing Up for Property Owners

The Wisconsin REALTORS® Association (WRA) is currently involved in 14 lawsuits to challenge local ordinances that conflict with the state’s right-to-rent law.

These legal actions aim to:

• Defend homeowners’ rights to use their properties legally

• Encourage fair and balanced local regulations

• Keep local economies growing through tourism

For Hudson-area property owners, these protections are vital. With thoughtful rules and smart enforcement, short-term rentals can work for everyone—residents, visitors, and business owners alike.

What This Means for Homeowners and Buyers

Thinking about investing in a short-term rental in Hudson, WI or the Twin Cities? You’re not alone. Many buyers today are looking for:

• Income-producing vacation properties

• Flexible living arrangements

• Second homes that double as weekend rentals

At The Johnson Group, we specialize in helping clients buy and sell real estate with short-term rental potential. We stay on top of local regulations and market trends, so you don’t have to.

Written by Mark Johnson, REALTOR® and owner of The Johnson Group at Coldwell Banker Realty. With over 20 years of experience helping clients across Hudson, WI and the Twin Cities, Mark is passionate about delivering expert real estate guidance with a personal touch.