Leelanau County Principal Residence Exemption Trends (2010–2025): What the Data Really Tells Us

Leelanau County Principal Residence Exemption Trends (2010–2025): What the Data Really Tells Us

If you’re trying to understand who actually lives in Leelanau County—versus who owns vacation or investment property—the Principal Residence Exemption (PRE) is one of the most important data points available.

The chart above shows the percentage of residential parcels occupied as a primary home in Leelanau County from 2010 through 2025, based on Equalization Department data. And while the year-to-year changes may look small, the long-term trend tells a bigger story about housing pressure, second-home ownership, and inventory constraints.

What Is the Principal Residence Exemption (PRE)?

In Michigan, a Principal Residence Exemption indicates that a property is the owner’s primary residence. Homes with a PRE are typically occupied year-round by local residents, while parcels without a PRE are often:

  • Seasonal or vacation homes

  • Short-term or long-term rentals

  • Investment properties

  • Second homes owned by out-of-area buyers

Tracking PRE percentages is one of the best ways to measure how much of a community’s housing stock is truly serving full-time residents.

Key Takeaways from the 2010–2025 Leelanau County PRE Data

1. Less than half of all parcels are primary residences
Throughout the entire 15-year period shown, the PRE rate stays in a narrow range—roughly 45% to 47%. That means a majority of residential parcels in Leelanau County are not occupied full-time.

This is a defining characteristic of the local real estate market and a major reason inventory remains tight even when sales slow.

2. The peak occurred around 2017–2020
PRE percentages climbed steadily from 2010 and peaked around 2017–2020, topping out near 46.6%. This period coincides with:

  • Strong in-migration before and during the early COVID years

  • Buyers converting second homes into primary residences

  • Increased remote work flexibility

3. A post-2020 pullback reflects market reality
After 2020, the PRE percentage dips slightly and stabilizes again in the mid-45% range. This suggests:

  • Continued demand for seasonal and second homes

  • Investors and lifestyle buyers remaining active

  • Fewer homes converting to full-time residences than many expect

Despite record-setting sales activity earlier this decade, Leelanau County has not shifted into a majority full-time resident market.

Why PRE Trends Matter for Buyers and Sellers

For Buyers:
Low PRE percentages mean you’re competing in a market with:

  • Fewer owner-occupied listings

  • Higher competition for year-round homes

  • Zoning and rental rules that matter more than in typical markets

Understanding PRE data helps buyers set realistic expectations and make smarter offers.

For Sellers:
Homes that work well as primary residences often attract a different buyer pool than vacation or rental-focused properties. Knowing where demand actually comes from can directly affect pricing, timing, and marketing strategy.

For Policy and Long-Term Planning:
PRE data also plays a role in conversations about workforce housing, school enrollment, and local services—topics that continue to shape Leelanau County’s future.

Bottom Line

Leelanau County’s real estate market is not driven primarily by year-round residents—and the data proves it. For more than a decade, over half of all residential parcels have been non-primary residences, and that reality continues in 2025.

Anyone buying, selling, or investing here needs to understand this dynamic. It impacts values, inventory, negotiations, and long-term appreciation.

Want Local Data That Actually Matters?

I regularly analyze Leelanau County real estate trends, including sales, financing, cash purchases, and housing use patterns like PRE. If you want data-driven insight instead of national headlines, you’re in the right place.

Need Expert Real Estate Advice? Contact Jonathan Oltersdorf Today!

For personalized insights into Leelanau County real estate, reach out to Jonathan Oltersdorf at Oltersdorf Realty, LLC.

📞 Office Phone: 231-271-7777
📧 Email: jonathan@oltersdorf.com
🌐 Website: www.oltersdorf.com

2022 Leelanau Principal Residence Exemption Percentages

What percent of Leelanau County residential properties were claimed as a primary home in 2022?

In 2022, only 46.0% of Leelanau County's residential properties were designated as primary homes. This statistic has remained relatively unchanged for over a decade, despite the growth of short-term rental platforms such as Airbnb and VRBO. Historically, Leelanau County has always been a popular destination for 2nd home owners and seasonal properties. While the number of short-term rentals has increased, data suggests that these properties are mostly being converted from second homes or traditional long-term rentals, not primary residences.

Principal Residence Exemption Changes - Senate Bill 349

Principal Residence Exemption Legislation Unanimously Passes Senate

Today, the Michigan Senate voted 38-0 in support of legislation providing a fair process when it comes to their property taxes.

Senate Bill 349, sponsored by Senator Dave Hildenbrand (R-Lowell) creates two Principal Residence Exemption (PRE) filing dates; one on June 1st, and the other on November 1st. Additionally, this legislation allows bank-owned properties to retain their PRE so that buyers can qualify at the lower rate of taxation. This is particularly important since foreclosures have flooded the market in recent years.

Senate Bill 349 now heads over to the House for consideration.

Copyright Michigan Association of REALTORS®. Reprinted with permission.

IF THIS BECOMES LAW WHAT DOES IT MEAN?

Currently, Michigan property owners have to file a principal residence exemption form by May 1 to get lower primary home taxes for the full year. If you miss the May 1 deadline or you purchase a house that wasn't a primary home after May 1 you will pay the higher non homestead taxes until the following year. If this bill becomes law the new deadline for your summer tax bill (the much higher bill) will be June 1 and November 1 for the winter tax bill. In short, it will save the home purchaser money if you buy a non-homestead (vacant or non primary residence) home after May 1 and intend to occupy the home as your primary residence.

Exemptions for bank owned properties.

This also appears to be a major tax break for lending institutions and banks that can file an exemption to receive the homestead property tax rate (primary home rate) for vacant assets that are currently for sale. This also could allow for purchasers to qualify for their mortgage based on the lower tax rate and qualify for a slightly more expensive home.

Here is the most relavent portion of the bill:

An owner of property may claim 1 exemption under this section by filing an affidavit on or before May 1 FOR TAXES LEVIED BEFORE JANUARY 1,2012 OR, FOR TAXES LEVIED AFTER DECEMBER 31, 2011, ON OR BEFORE JUNE 1 FOR THE IMMEDIATELY SUCCEEDING SUMMER TAX LEVY AND ALL SUBSEQUENT TAX LEVIES OR ON OR BEFORE NOVEMBER 1 FOR THE IMMEDIATELY SUCCEEDING WINTER TAX LEVY AND ALL SUBSEQUENT TAX LEVIES

You can read and/or download the full 27 page Senate Bill 349 by clicking here:
http://www.legislature.mi.gov/documents/2011-2012/billengrossed/Senate/pdf/2011-SEBS-0349.pdf

 

UPDATE: APRIL 26, 2012: Yesterday, the Michigan House of Representatives voted 109-1 in support of legislation providing a fair process when it comes to their property taxes. The bill now heads to the Governor, where we expect his signature before May 1st.

UPDATE #2: MAY 1, 2012: PRE Enhancement Legislation Signed by the Governor 5/1/2012 Today, Governor Snyder signed legislation providing homebuyers a fair process when it comes to their property taxes. Senate Bill 349, sponsored by Senator Dave Hildenbrand (R-Lowell) creates two Principal Residence Exemption (PRE) filing dates; one on June 1st, and the other on November 1st. Additionally, this legislation allows bank-owned properties to retain their PRE so that buyers can qualify at the lower rate of taxation. This is particularly important since foreclosures have flooded the market in recent years.

Below are a few FAQ’s regarding the new law:

1. Does the legislation take effect this year?
A. Yes. The new law moves current May 1st PRE filing deadline to June 1st of this year.

2. How does it work?
A. If a homebuyer purchases a Principal Residence and closes on or before June 1st, they can take advantage of a significant tax break by filing for a Principal Residence Exemption.

3. When is the additional filing date?
A. November 1st. This allows for tax relief in those communities that still collect a portion, if not all of their non-homestead mills, on the December tax bill.

4. If my client buys after June 1st this year, what can they expect?
A. If a homebuyer purchases a home after the June 1st filing deadline, and their local tax authority collects all non-homestead mills on the spring tax bill, their property taxes may not reflect the exemption until the next tax bill. If however that local tax authority collects a portion of the non-homestead mills on the winter tax billing cycle, the homebuyer can file for a PRE before the November 1st and exempt themselves from any non-homestead mills collected on the December bill.

5. What about the foreclosure provisions?
A. Banks have the option of maintaining the home’s Principal Residence status by filing a Conditional Rescission. By maintaining this exemption status, it’s the expectation that borrowers will be able to qualify for financing on these foreclosed properties at the PRE rate and begin paying the lower rate of taxation as soon as they move into the home. To make up for the lost school revenue, banks will be assessed a newly defined tax that will keep the 18 mills (which they presently pay on any foreclosed property) when a property can no longer qualify as a principle residence. It is important for those REALTORS® working with bank clients to let lenders know about the change and communicate the benefit of filing a Conditional Rescission.

Copyright Michigan Association of REALTORS®. Reprinted with permission.


If you are planning on buying a home in Leelanau County or Traverse City/Grand Traverse County you should continue to follow this bill as it could potentially become law in the near future.

Jonathan Oltersdorf
Vicky Oltersdorf
Oltersdorf Realty, LLC
Phone: 231-271-7777
E-Mail: realestate@oltersdorf.com

Michigan Senate Bill 77 - General Property Tax Act

UPDATE 12/27/10: On December 22nd, 2010, Governor Granholm VETOED supported legislation aimed at getting the housing market moving. Senate bill 77, which passed both the House and Senate in the last days of the 2010 session, allowed foreclosed properties to retain their principal residence exemption for a period of up to 3 years.

The Michigan Association of Realtors has recently posted a podcast discussing the potential outcome of Senate Bill 77 known as the “General Property Tax Act”. This bill could potentially extend the homestead exemption deadline from May 1 to a later date in the year. If you are planning on purchasing a primary home in Leelanau County or Grand Traverse County - Traverse City after May 1, 2011 you definitely should keep your eye on the outcome of this bill! I have also touched on this bill in a previous post found HERE and highlighted below.

"Currently, if you purchase a home in Michigan after May 1st and the house is currently not considered a “primary residence” the property taxes for the entire year will be based on the non-homestead tax rate which can be up to 18 mills higher. This would extend the deadline to October 1st which is great news for home buyers who purchase throughout the summer and intend to use the house as their primary residence if the seller is not currently taking advantage of the principal homestead exemption. "

-Jonathan Oltersdorf-
/
231-271-7777

Potential Property Tax Changes - Michigan

You can view an updated post on this topic by clicking HERE!

UPDATE: On December 22nd, 2010, Governor Granholm vetoed MAR-supported legislation aimed at getting the housing market moving. Senate bill 77, which passed both the House and Senate in the last days of the 2010 session, allowed foreclosed properties to retain their principal residence exemption for a period of up to 3 years.

Look for this to be reintroduced sometime in early 2011.


Very interesting news was announced yesterday as new housing legislation unanimously passed in the Michigan Senate and now moves to the house for a vote. The topic – Homestead property taxes and the principal residence exemption deadline could be extended from May 1st to October 1st!

What does this mean to home buyers and sellers in Northern Michigan?

Currently, if you purchase a home in Michigan after May 1st and the house is currently not considered a “primary residence”the property taxes for the entire year will be based on the non-homestead tax rate which can be up to 18 mills higher. This would extend the deadline to October 1st which is great news for home buyers who purchase throughout the summer and intend to use the house as their primary residence if the seller is not currently taking advantage of the principal homestead exemption. This is also very beneficial to some sellers, especially within our Traverse City region (Grand Traverse County & Leelanau County) because of the large amount of second homes on the market. If you are selling a non primary residence home, currently you must sell that home before May 1st to a buyer who will file the principal residence exemption form in order for you to prorate your tax portion at a lower millage rate for the year of the sale. If they extend the date to October or November it could potentially reduce your tax bill significantly for the entire year, even if you sell in late summer/early fall. You can read the full press release below. Please let us know if you have any additional questions!

-Jonathan Oltersdorf
http://www.oltersdor.com/

Senate Bill 77, sponsored by Senator Jud Gilbert (R – Algonac) unanimously passed the Michigan Senate today with a vote of 36-0 and now moves to the House of Representatives for consideration. This legislation would provide for an additional “Principal Residence” filing date of October 1st. It should be noted that an amendment has been added to the legislation to move the deadline from October 1st to November 1st for 2010 only so that homebuyers can take advantage of this taxpayer friendly legislation this year.

Under current law, homeowners may file a principal residence exemption on their primary home in Michigan. This exemption provides significant tax relief to those citizens that choose to call this state “home.” In order to claim this exemption, one must file the principal residence affidavit with their local government by May 1st. Buyers purchasing homes after the May 1st deadline, are hit with up to an additional 18 mills of non-homestead property taxes until the following year. This additional property tax burden is standing in the way of new homeownership and otherwise taxing those people that have declared Michigan their home, though they purchased after the deadline.

This legislation has become particularly important since “non principal residence” properties, specifically foreclosures, have flooded Michigan’s real estate market in recent years. The current situation prices buyers out of homes by forcing them to qualify for a mortgage at the higher tax rate. Those buyers that are able to purchase after May 1st are consequently stuck with a significant tax burden for the remainder of the year despite making that new purchase their principal residence. This bill would alleviate some of that pressure by creating a second filing deadline later in the year.

We remain cautiously optimistic regarding the passage of this legislation as there are a finite number of session days left this legislative session. The MAR Public Policy staff will continue to meet with the members of the Michigan House to express the importance of making this tax payer friendly legislation a priority.

Copyright Michigan Association of REALTORS®. Reprinted with permission.

How to Understand Your Leelanau County and Grand Traverse County (Traverse City) Property Tax Assessment

Every year, typically by the last week of February you will be mailed your new notice of assessment informing you of your updated State Equalized Value and Taxable Value on your property. This notice is sent to all property owners in Michigan.



Understanding Terminology



State Equalized Value (SEV): The dollar value of an asset assigned by a public tax assessor for the purposes of taxation.



SEV x 2 = The Township Assessors total estimated current market value for your home and/or property.



Taxable Value: The current dollar value assessment established for property tax purposes.



Taxable Value x 2 = The total estimated dollar value for your home and/or property that you will be paying tax on.



Taxable Value x Your Township Millage Rate + Township Administration Fee (1% fee charged in some townships)= Your Tax Bill







Why are these numbers different?

-In 1994 Michigan passed Proposal A creating a new standard in which your property tax would be calculated. The current tax law allows the taxable value of a property to increase by the lesser of 5% or the rate of inflation. In recent years inflation has been under 5% so your tax bill would increase yearly by that rate. Property values, until recently, had continued to soar and appreciate above the rate of inflation. This created a gap between your State Equalized Value (which has no limit to its increase ceiling per year) and your Taxable Value (which had a max of 5% per year value increase).



Why is my tax bill still increasing during this downturn?

-Today, most home and property values in Leelanau and Grand Traverse Counties have flattened or declined so you should not see your SEV continue to soar at high percentages from year to year like in the past. There still might be a gap between your SEV and Taxable Value (As the local real estate market declines these numbers will become closer in value). This is why you will see your tax bill continue to increase every year (by the rate of inflation or 5%, whichever is less) until your Taxable Value = Your State Equalized Value. If your current taxable value is less than your current SEV Proposal A has saved you money! However the taxable value may need to be adjusted to meet current market values. The current law allows upon sale of a property the taxable value of a property to uncap to the current level of the properties SEV. This is why the year after the purchase of a property a new owner must be sure to pay particular attention to this notice!!



How do I reduce my property taxes?

1) Upon receipt of your notice of property assessment from your local Township Assessor in February of each year you should review your properties proposed SEV and Taxable Values. (This notice will be labeled Notice of Assessment- THIS IS NOT A TAX BILL)



2) By multiplying this proposed current year Taxable Value x 2 you will be able to determine the dollar value of the property the local assessor will be basing your current year’s taxes. If your house is worth more than this value then you have no case to reduce your taxes for this year. Conversely, if you feel the proposed Taxable Value of your property X 2 is more than you feel your house is worth you could have a case.



3) By multiplying the proposed current year SEV by 2 you will be able to determine the current dollar (market) value the local assessor has placed on your property.



4) Be sure to check your Homeowners Principal Residence % exemption to be sure it is correct. 100% means you are receiving this exception as your primary home for this calendar year.



5) Every township and/or city has specific times published on this notice and in the local paper (Leelanau Enterprise and Record-Eagle) during early March which is the designated time for you to meet with the township assessor and a local board of review for reviewing your case. At this time you must come prepared with sales data and/or official appraisals of recent sold comparables to your property. These published times in early March are your only opportunity all year to plead your case to reduce your entire years tax bill. If you miss this “Board of Review” you must wait until March of the following year. There are a few exceptions to this rule. The Township Assessor could agree to correct errors on the properties tax card during the year within a specific time frame required by the state.



Official written appraisals by a state licensed appraiser are your best option for obtaining statistical data confirming your properties over assessment. This written appraisal will have a cost associated to its completion with no guarantee that the local board of review will reduce your tax assessment and your bill! If your property is greatly over assessed this cost will be minimal in relation to the savings you may receive if you are successful in obtaining a reduction in your properties tax assessment.



6) Determining your proposed estimated yearly Tax Bill from this notice: By multiplying this Taxable Value times your individual townships mileage (with correct school district) and taking into consideration this properties homestead exemption status you will be able to determine the estimate of your updated tax bill. This amount may vary slightly by townships across Michigan because some townships charge a 1% administration fee for each tax bill.



If there are further questions regarding this issue we suggest you contact your local Township Assessor.



As experienced Realtor professionals at Oltersdorf Realty we do our best to assist our former clients in making sure they are being properly assessed well after we assisted them in purchasing their property or home. This notice is intended to alert all property owners that these notices are very important and must not be ignored despite the statement at the top of the document saying THIS IS NOT A TAX BILL!!!!





Written by:



Vicky Oltersdorf & Jonathan Oltersdorf

Oltersdorf Realty, LLC

231-271-7777

/

RealEstate@Oltersdorf.com





LEELANAU COUNTY MILLAGE RATES









GRAND TRAVERSE COUNTY MILLAGE RATES


(Click HERE to Download)







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Grand Traverse County - Traverse City - Millage - Property Taxes

Grand Traverse County – Traverse City - Millage – Property Taxes



THIS POST HAS BEEN UPDATED IN A NEW POST FOR 2011, VIEW IT HERE!



Below is the apportionment chart provided by the Grand Traverse County – Traverse City Equalization Department showing anticipated 2010 millage rates. This is the chart that is used to figure your estimated 2010 tax bill. Within the next couple of weeks all Grand Traverse County – Traverse City property owners will be mailed their new notice of assessment informing them of their updated 2010 State Equalized Value and Taxable Value on their property. Have you ever wondered what your property taxes would be if you lived in another township, or if you switched your homestead status to your non-primary home? The chart below is extremely helpful in comparing property taxes in all Grand Traverse County Townships whether you are in the City of Traverse City or Long Lake Township, etc. You can download the PDF by clicking HERE or on the image below. To figure your estimated tax bill, take your taxable value from your notice of assessment (or approximate house value divided by 2) and multiply it by your township millage rate on the chart (make sure you have the correct school district and homestead status).



For Example – Downtown Traverse City primary home with a Taxable Value of $100,000 (house value of $200,000)



100,000 * (0.0378046) = A yearly tax bill of $3,780



Please contact us if you have any additional questions!

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2009 Grand Traverse Millage/Property Tax Rates

THIS POST HAS BEEN UPDATED FOR 2010, THE NEW POST CAN BE FOUND BY CLICKING HERE.

Have you ever wondered what your property taxes would be if you lived in another township, or if you switched your homestead status to your non-primary home? By clicking the photo below you can download a PDF chart of current Grand Traverse County property tax rates (post November 2008 election) along with a description of how to figure your own taxes. I hope this helps!

Click HERE to download.

2009 Leelanau Millage/Property Tax Rates

THIS POST HAS BEEN UPDATED FOR 2010, THE NEW POST CAN BE FOUND BY CLICKING HERE.

Have you ever wondered what your property taxes would be if you lived in another township, or if you switched your homestead status to your non-primary home? By clicking the photo below you can download a PDF chart of current Leelanau County property tax rates (post November 2008 election) along with a description of how to figure your own taxes. I hope this helps!

Click HERE to download.

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3 Tax Saving Opportunities!

Welcome to 2009. I have gathered a list of important 2008 tax issues that everyone should be aware of.

1) First Time Homebuyers $7,500 Tax Credit

Legislation passed in 2008 allowing for first time home buyers to receive up to $7,500 tax credit for a home purchase between April 9, 2008 and June 30, 2009 (A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS) Of course this will have to be repaid to the federal government over 15 years. It acts more like an interest free loan which can be very beneficial for new homeowners or young couples just starting out! There are several guidelines to who is eligible and more information can be found at the government’s official website http://www.federalhousingtaxcredit.com/index.html or by consulting with your accountant.

2) Transfer Tax Exemption

In case you are unaware, when you sell a home in Michigan you must pay a transfer tax (a name for real estate sales tax) generally in the amount of $8.60 per $1,000.00 of the sales price. There was an important opinion by Michigan Attorney General Mike Cox in 2008 clarifying the proper application of this obscure exemption of the Michigan Transfer Tax Act. A seller may seek an exemption from paying the state transfer tax if the following criteria are met:

  • The property must have been occupied as a principle residence, classified as homestead property;
  • The property’s State Equalized Value (“SEV”) for the calendar year in which the transfer is made must be less than or equal to the property’s SEV for the calendar year in which the transferor acquired the property; and
  • The property cannot be transferred for consideration exceeding its true cash value (twice the SEV) for the year of the transfer.

Evidently this exemption will only apply to a select few sellers (of the 50 transaction sides that Oltersdorf Realty closed in 2008 none met the criteria) but this number could increase in 2009. This is one of the many reasons it is very important to be informed about your properties taxable and SEV assessments. For example a sale price of $500,000 would save the seller $4,300 if they meet all 3 of the criteria. Please consult your accountant regarding the specifics of this exemption.

3) Receive Principal Residence Tax Exemption on 2 Homes!

In 2008 Governor Granholm signed House Bill 4215, enacting Public Act 96 of 2008, which amended Section 211.7cc of the General Property Tax Act of 1893. The amendment enables a person who has established a NEW principal residence IN MICHIGAN to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner's principal residence. All of the following must be met:

  • Must have previously been the owner's principal residence
  • The home is currently for sale
  • It is not occupied
  • It is not leased
  • It is not used for any business or commercial purposes

    You must apply for this principal residence exemption by May 1, for the 2009 tax year. This is simply another benefit for home owners who have moved to another home within Michigan and are yet to find a buyer for their previous primary home. Please visit the official Michigan.Gov website for more information by clicking HERE.

    This was a lengthy blog entry and if you would like more information on any of these topics, please contact Jonathan or Vicky Oltersdorf at 231-271-7777 or through email at RealEstate@Oltersdorf.com.

    Entry Written By Jonathan Oltersdorf