Petoskey housing – Petoskey’s popularity has driven home prices skyward, squeezing employers and everyday workers as seasonal homes dominate the market.
Petoskey’s phone lines keep lighting up for one reason: housing simply isn’t available for the people trying to build a life there year-round. For local employers, the search is taking months, not weeks, and the problem is feeding directly into hiring decisions.
Nikki Devitt, president of the Petoskey Chamber, described the pattern she hears regularly.. Employers call after they’ve offered year-round jobs for positions such as salaried roles or nursing and doctor hires. only to report that candidates can’t find a place to live.. Devitt’s response has stayed the same for weeks: she cannot provide housing options. even as employers say they may have to walk away from roles if workers can’t secure accommodations.
The shortage is severe. Petoskey’s occupancy rates are above 99%, and homes that are available now cost far more than they did just a few years ago. The report stated that home prices have more than tripled since 2020, moving from about $310,000 to roughly $1.1 million.
The pressure is intensified by how many local residences function as seasonal second-homes. With about half of the city’s homes used this way, permanent residents face a tighter inventory, and the market becomes less predictable for workers who need long-term stability.
This squeeze affects businesses in a direct, practical way: it limits employers’ ability to fill roles without asking people to commute long distances. Some workers end up driving from an hour away or longer, while others are pushed toward temporary alternatives such as living in campgrounds.
On the local policy side, Petoskey leaders say the housing crunch is the biggest challenge the city faces.. Mayor John Murphy argued that the situation is especially harmful for essential workers like teachers and nurses. warning that without some kind of breakthrough. they may not be able to buy homes in Petoskey in the future.
The problem is not confined to Petoskey alone. Housing access is described as a leading issue across northern Michigan and increasingly statewide, reflecting how competition for places to live is rising beyond one tourist-heavy community.
A resident survey tied to election concerns found housing as a top issue for a meaningful share of respondents.. Since late February. the report stated that one in 10 of roughly 2. 100 participants identified housing as a top election issue. and a full third of those concerned respondents were from northern Michigan.
The reporting also pointed to broader demand estimates for the region around Petoskey. One study cited in the report said the 10-county area surrounding Petoskey needs about 30,000 additional units by 2027 to keep pace with demand.
Historically, Petoskey’s location and lifestyle made it a comparatively more affordable alternative to other destinations along Lake Michigan.. The report stated that it was often cheaper than well-known tourist magnets like Traverse City and Charlevoix. but that changed after the pandemic when interest surged and. with it. housing prices accelerated.
Local real estate experience aligns with that shift. David Shuman of Bay North Realty said the timing mattered: people looked to leave cities while interest rates were low, and demand moved quickly. He described the mismatch between demand and supply as persistent as the surge continued.
In recent months, Petoskey has drawn national attention for price pressures.. The report stated that a real estate website highlighted Petoskey among “pure luxury” communities. noting that more than half of listings there now surpass $1 million.. It also said Petoskey was the only Michigan community included, ranking 11th nationally.
Tourism and natural amenities remain central to Petoskey’s appeal. with water views. hiking. green spaces. and winter access tied to nearby ski resorts.. Yet the report made clear that the same features that attract visitors have complicated housing for those who work locally. and it suggested the cost escalation has contributed to greater tax revenue for the city.
One visible indicator of how quickly values have changed is the story of a home near downtown.. Shuman described a property that sold for about $377. 000 in 2015. then was sold again in 2023 for roughly $1.4 million. and was later listed at about $1.95 million.. That kind of jump illustrates why the market has become difficult to navigate even for people with steady employment.
The report also described how rebuilding supply isn’t straightforward. Shuman said it’s difficult for Petoskey to build its way out when nearby developments have stalled over disagreements about who pays to extend water and sewer lines, and when building costs rise.
Even in new subdivisions, the housing described as being created tends to be expensive. The report stated that the few that have started include custom-built homes averaging about $500 per square foot to build, equating to around $1 million for a 2,000-square-foot home.
That pricing reality shows up in personal stories of recruitment and relocation. Shuman said a doctor he helped find a home couldn’t secure one and for several months lived in a camper until housing became available.
School officials reported similar friction. Petoskey Public Schools Superintendent Jeffrey Leslie said that during job interviews the district has to ask candidates whether they have housing. He said he has seen applicants decline positions because they couldn’t find a place to live locally.
The economic impact of the housing barrier also shows up in employer surveys beyond individual workplaces.. The report cited a survey by Northern Lakes Economic Alliance that serves businesses in Antrim. Charlevoix. Cheboygan. and Emmet counties. reporting that 81% of employers identified attainable housing as the top barrier.
While some communities exist within a 30-minute drive that may be more affordable. workers still travel farther when they can’t find local options.. Leslie noted examples including employees living in Onaway—described as a 50-minute drive when roads are clear—and another administrator commuting from St.. Ignace, with winter making travel significantly longer.
Meanwhile, the report pointed to new construction beginning to shift the picture. It described apartment-building activity at the former Michigan Maple Block Company site in Petoskey, where the plant closed in 2020 and has since been torn down. Apartment buildings are now going up in its place.
The report said that site. along with other developments such as Victories Square apartments operated by the Little Traverse Bay Bands of Odawa Indians and the planned Lofts at Lumber Square. are expected to add about 300 new rental units when fully built.. It also described these as the first new apartments in Petoskey in 20 years.
Some of the units are also described as being reserved for lower-income tenants who work in the area.. For example. the Lofts at Lumber Square is managed by a nonprofit and is described as being intended for middle-income community members who still can’t find affordable homes near workplaces and schools.
Beyond rentals, the report described ongoing efforts to expand options further.. Devitt cited estimates that Emmet County has a shortfall of 3. 300 housing units. and both the mayor and the school superintendent are described as having preliminary discussions about whether the school district could use some property to support housing development.
The story also highlighted a different approach led by a local construction company. Manthei, a wood and construction business, was described as deciding to build a comparatively low-cost housing complex after repeated learning that workers were sleeping in cars or campers.
That project, Pine Pond, is described as having sites for 130 manufactured homes with pricing roughly in the range of $225,000 to $375,000.. The report added that the property remains owned by the management company. so homeowners don’t pay property tax. and that about 30 units have been built so far.
The report framed Pine Pond as aimed at the workforce population squeezed out of housing in and around Petoskey. It quoted the idea that the goal is to help people who would otherwise be pushed out by escalating costs.
Another parallel effort in the report involves a cooperative focused on purchasing and maintaining homes.. InvestMitt Cooperative is described as attempting to raise funds from the community to buy an apartment complex and keep rents low. with an initial goal of acquiring a 24-unit complex to rent units for under-market value of about $1. 000 a month.
As Devitt reflected. it can feel odd for a community to complain that it is “too popular. ” especially when visitors bring economic energy.. But the report’s central argument is that popularity has become a pressure system. and the need for housing is growing faster than what new construction alone can resolve.
If the city had unlimited resources, the report suggested, the problem would still be complicated to solve quickly. Devitt was described as saying that even if Petoskey were given a large sum of money to build whatever it wanted, it would still likely not be enough to close the gap.
Until more housing becomes available at prices workers can afford, the cycle described by the Chamber president is expected to continue—phones ringing, interviews pausing, and employers weighing whether they can bring in essential staff when homes remain out of reach.
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