If you own a cabin tucked into the pines or a vacation rental near one of the U.P.’s lakeshores, it can be tempting to dismiss national headlines. The local market seems distinct, and in many ways it is. But recent insights from Altus Group suggest that broader trends are quietly shaping what your property is worth, how it performs, and what opportunities may be ahead for owners across the Upper Peninsula.
At a national level, Altus Group’s January 2026 CRE This Week notes that the U.S. economy is still expanding, even as job growth slows. That slower pace matters less for regions like the U.P. that rely heavily on tourism rather than office jobs. Canadian research from Altus shows tourism spending rose 2 per cent in 2025, driven by a big jump in domestic travel and lodging. That lines up with what we are seeing in Michigan, where vacation rentals continue to perform strongly despite softness in some urban markets. Travellers are still choosing drivable, nature-focused destinations, and the U.P. fits that bill perfectly.
For cabin and short-term rental owners, this means pricing power has not disappeared, but competition is increasing. Across Michigan, more listings are coming online each year, and guests have more options. Occupancy rates and nightly prices are holding steady in many areas, yet guests are booking closer to their arrival dates and shopping around. Owners who pay attention to seasonality, amenities, and guest experience are better positioned than those who simply set it and forget it.
Altus Group also points to a growing demand for transparency from investors and lenders as interest rates remain higher. Real estate data analytics are no longer just for large commercial firms. Even small property owners are feeling the shift. Keeping clear records of rental income, maintenance costs, and upgrades is becoming essential if you want financing for a new build, plan to refinance, or think you might sell down the road. Being able to explain why revenue changed from one year to the next can protect your property’s value in a market that rewards clarity.
On the retail side, Altus notes that high-quality malls and retail spaces are seeing renewed investor interest, with occupancies rebounding to around 91 per cent. The U.P. does not have many traditional malls, but this trend still matters. Stronger retail fundamentals often translate into more confidence in tourism-driven businesses. Think downtown shops, outfitters, breweries, and local restaurants that serve visitors. More investment in those spaces improves the overall appeal of the communities where many cabins and rentals are located.
Finally, Altus Group’s valuation trends show office values are still far below pre-pandemic levels, even as cash flows improve. The persistence of remote work is a quiet win for the U.P. Fewer people tied to offices means more long stays, midweek bookings, and visitors blending work with time outdoors. For owners who can offer reliable internet and comfortable workspaces, this trend opens the door to a new kind of guest.
National real estate trends may feel distant, but they ripple all the way north. For U.P. property owners, the message is clear: stay informed, stay flexible, and treat your cabin or rental like the valuable asset it is.
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