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The City Commission passed these updates after sharp pushback from full-time residents. The restrictions were designed to solve three main issues:
Preserving Long-Term Housing: With the boom of vacation rentals, local buyers and year-round renters were being priced out of the market. Investors buying up residential homes solely to use as full-time Airbnbs significantly reduced the local housing supply.
Protecting Neighborhood Character: Full-time residents frequently complained to the city about the hotel-ization of their quiet streets--specifically citing rotating crowds of vacationers, loud parties, and properties being overrun during peak summer months.
Parking and Trash Overload: Many residential homes in Muskegon weren't built to handle five or six cars per driveway. The city established strict rules prohibiting guests from parking on lawns, over sidewalks, or blocking mailboxes, alongside requiring mandatory weekly trash service.
=ú Are There Any Loopholes?
Yes. If you want to operate a short-term rental without a strict zone cap, the property must be located within the boundaries of the Downtown Development Authority, the Lakeside Business Improvement District, or the Lakeside Corridor Improvement Authority. The city intentionally exempted these commercial/business districts from the caps to encourage tourism growth where it wouldn't disrupt quiet residential pockets.
Additionally, if a host lives on the property full-time and just rents out a room or an attached guest suite while remaining on-site, it is classified as a hosted rental rather than a full STR, though it must still be registered with the city.