Michigan Housing Market 2024: Prices and Trends

Before buying a house, you must pay attention to the housing market to determine the best time and location in which to buy. If you're looking at homes in Michigan, now is the time to reflect on the major trends that occurred in 2023 and see what 2024 has in store.


Overall, prices rose in 2023, but thanks to high interest rates, the number of homes sold decreased, and growth has been relatively slow statewide. However, some areas like Jackson and Midland saw better numbers than other parts of Michigan, so it matters where you're looking to buy.


As 2024 gets underway, the big question is whether home sales will tick up or continue a slow downward trend. Nonetheless, it's clear that higher home prices are here to stay—for a while, at least. Curious to know more? Keep reading for the latest insights!


Trends in Michigan's 2023 Real Estate Market

When looking at the Michigan housing market in 2023, three major trends stand out. First, home prices were up across the board, and over a third of houses sold above market price. Second, the number of houses available and sold declined, indicating that while demand is high, buyers may not be able to afford more expensive properties (or take on elevated interest rates). Finally, some areas saw massive growth while others went down. Let's break each trend down into more detail.

Higher Housing Prices

By November of 2023, the median home price in Michigan was $281,186, which was a 10.3% increase from 2022. Additionally, about 32 percent of homes sold in 2023 were above market price, which was a 4.2 percent increase from the year before.


Overall, Michigan housing is pricier than ever, but demand is so high that buyers are willing to pay more than necessary to secure a property. The median time a house spent listed for sale was 16 days.

Fewer Homes Sold

For all of 2023, there were 88,677 homes sold in Michigan, which was about 18 percent less than in 2022, when over 109,000 homes were sold. In November alone, only 30,000 homes were listed for sale, which was about 9.5 percent less than the year before.


Several factors contributed to this decline. First, mortgage interest rates are at a record high, standing at about 7.3 percent. So, more buyers are wary about purchasing property because they fear a staggering mortgage payment.


Similarly, new home construction is down for the state. Overall, new builds for 2023 were behind 2022, and the state is well behind the number it needs to match housing demand.

Shifting Demographics

The top five cities with the fastest-growing home sale price in 2023 were:

  • Jackson (41 percent)
  • Midland (38.2 percent)
  • Battle Creek (32 percent)
  • Dearborn Heights (28.4 percent)
  • Warren (26.7 percent)

Higher prices are often a result of high demand and limited supply, leading to bidding wars and stiff competition. However, the most competitive cities in Michigan in 2023 were:

  • Eastwood
  • Fowlerville
  • Comstock Northwest
  • Level Park-Oak Park
  • Milford

What each of these places have in common is that they're outside of major cities like Detroit and Grand Rapids. Not only are home prices even higher in bigger cities, but residents have to contend with other issues of living in a metropolitan area, such as parking fees, higher crime rates, and overcrowding.


Overall, many new homebuyers in Michigan were searching for places in smaller towns and rural areas. Part of this could be that housing inventory is better in these towns or that the appeal of small-town living is worth paying higher prices for.

The Future of Michigan's Real Estate in 2024

Given how the Michigan housing market fared in 2023, we can predict how those factors will affect the market in the upcoming year. Some trends to pay attention to include:

  • Fewer First-Time Homebuyers - The National Association of Realtors reported that only 26 percent of homebuyers in 2022 were first-timers, which was the lowest the NAR had recorded in its history. That will likely continue as home prices increase and inventory doesn't keep pace with demand.

  • Some Parts of Detroit May See a Comeback - While the median home price in Detroit is one of the lowest in Michigan (around $102,000), some neighborhoods are seeing increases. Even though the city as a whole has a long way to go, buyers may be willing to invest in new properties in certain areas.

  • More Sellers Will Come to Market - Two factors may increase the number of homes for sale in 2024. First, high demand may entice sellers to list their homes now before the market settles down. Second, an aging population of Baby Boomers will likely try to downsize to smaller houses or condos, leading to more sales.

  • Interest Rates Will Come Down - Although the Fed hasn't indicated it plans to lower rates just yet, they are anticipated to come down in 2024. Once that happens, more buyers can likely get in on the action, leading to increased competition.

  • Fewer Second Home Sales May Become First Home Sales - While it's hard to get specific data on how many second homes are purchased throughout the year, there are indications of a slowdown in this niche market. Michigan has a ton of second homes, and with fewer buyers interested, inventory may be going to first-time buyers, especially once rates go down.

Price Trends Analysis

Throughout the state, the median home price in Michigan is around $230,000, with the median sales prices at around $235,000. However, different parts of the state vary wildly.


For example, in Kalamazoo, the median home price is $170,000 in November, marking a 6.2 percent decrease from 2022. However, what's even more remarkable is that the median price was close to $250,000 in June 2023, illustrating how volatile the market can be.


Conversely, in Grand Rapids, the median home listing price was $329,000 in December 2023, which was 13 percent higher than the year before. Similarly, the area saw a spike in home sales prices during the summer, which trailed off later in the year.


Overall, the Upper Peninsula is seeing a downward trend. For example, in Iron County (next to Wisconsin), median home prices are around $73,000, which is 2.6% less than the year before.

Impact of Economic Factors

In 2023, the cities with the hottest real estate markets in Michigan were:

  • Grand Rapids
  • East Grand Rapids
  • Wyoming
  • Traverse City
  • Dearborn (and Dearborn Heights)

Some of the main economic factors driving these markets include:

  • Relatively Low Cost of Living - Grand Rapids has a cost of living about five percent lower than the national average, and it's about the same in Traverse City.
  • Higher Quality of Life - Cities like Grand Rapids and Dearborn are developing quickly but without the downsides of living in a major metropolitan area. Residents have access to various amenities and attractions, but they don't have to worry as much about heavy traffic or high crime rates.
  • Job Opportunities - New development means new opportunities for jobs. While Grand Rapids doesn't have as much growth as other similar-sized cities, places like Dearborn are adding more jobs and growing at a steady pace.

Diverse Trends Across Michigan

As we've mentioned, different parts of Michigan are experiencing unique trends (both up and down), so it’s crucial to look at specific areas when comparing real estate in Michigan. Here's a detailed look at four cities: Detroit, Grand Rapids, Kalamazoo, and Traverse City.


  • Median Home Price - $85,000 (up 9 percent)
  • Number of Homes for Sale - Roughly 3,900
  • Buyer's or Seller's Market? - Buyer's
  • Price Range - up to $7,000,000

Grand Rapids

  • Median Home Price - $329,000 (up 13.8 percent)
  • Number of Homes for Sale - Roughly 530
  • Buyer's or Seller's Market - Seller's
  • Price Range - $20,000 to $3.5M


  • Median Home Price - $235,000 (down 2 percent)
  • Number of Homes for Sale - Roughly 500
  • Buyer's or Seller's Market - Seller's
  • Price Range - $8,000 to $1.5M

Traverse City

  • Median Home Price - $475,000 (down 6.4 percent)
  • Number of Homes for Sale - Roughly 600
  • Buyer's or Seller's Market - Neutral
  • Price Range - $2,000 to $8.5M

Buyers and Sellers in Michigan's Housing Market

As you can see, Michigan's real estate market is somewhat volatile and competitive, so you have to plan accordingly as a buyer or seller. Just because the market is favorable to one side or the other right now doesn't mean that won't change in the future. So, here are some top tips on how to navigate Michigan real estate on either side of the equation.

For Buyers:

  • Buy Now, Refinance Later - Yes, mortgage interest rates are high right now, but they'll go down in the future. When that happens, you may have the opportunity to refinance your mortgage and save money on your monthly payment. Overall, if you're ready to buy now, it's smarter to go this route than to wait. Once rates go down, more people will enter the market.
  • Get Pre-Approved - If you have a preapproval letter from a mortgage lender, you may have a better chance of your offer being accepted. Alternatively, if you have to wait for pre-approval once you find a place, it might get sold in the interim.
  • Buy a New Construction Home - Buying a house from a builder or developer is much easier than negotiating for a pre-owned home. The price is typically fixed, and you don't have to worry as much about upkeep and maintenance for a few years.
  • Get a Bigger Down Payment - The more you can pay upfront for your house, the easier it is to close the deal.

For Sellers:

  • Price High, Negotiate Down - If you're in a seller's market, you should consider listing your home for around 10 percent higher than the market price. However, use this as a negotiating tactic; don't assume you can sell it for that much. But this way, you have a buffer when working with buyers.
  • Make Your Home Move-In Ready - The more work that needs to be done on your home, the harder it can be to spark a bidding war. However, if your house is clean, well-kept, and ready for residents immediately, demand will be much higher.
  • Don't Pay Too Much for Fees - These days, it's never been easier to list your home, and some agents or sites only charge a one-percent commission fee. However, having a dedicated agent can help you sell quicker or for more money, so there's a bit of a trade-off.
  • Don't Wait Too Long - The housing market ebbs and flows, so things can change rapidly. In general, summer is the best season to sell because demand is higher. However, if you wait too long, you might wind up on a downward trend, forcing you to sell for less than you may want (or take your home off the market for a while).

The Future of Michigan Real Estate

People are moving to Michigan and clamoring for houses. As a result, because new construction is slow to keep pace, prices will likely keep rising in 2024 and beyond. That said, if the elderly population starts downsizing, homebuyers may see a steady influx of pre-owned homes hitting the market.


Also, the area matters a lot. For example, the Upper Peninsula is relatively cheap, but it doesn't have as many big cities or amenities. Similarly, Detroit is pretty affordable, but some parts of the city are far less desirable than others. Realistically, areas like Grand Rapids will probably see growth, but it will take work for Detroit to reclaim its former glory.

The Bottom Line on Michigan’s Housing Market

Buying a house in Michigan is somewhat complex but knowing the ins and outs of the market can help you make the smartest decision for your needs. Overall, as long as you're flexible with where you live and can wait for the right moment, you may be able to get the home of your dreams for less than you might expect.


Ready to start your search for a new home today? We’re here to help! Explore our wide selection of new construction homes for sale in some of Michigan’s most popular areas. 

The statements contained herein discuss general factors and do not constitute professional, investment and/or financial advice.


This is not an offering of property to residents in any jurisdiction that may have restrictions on interstate offerings of real estate, unless the property has been so registered, qualified or exemptions are available. It is the intent of Century to sell its residential homes pursuant to an exemption from the registration requirements the Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701, et seq.).