Overview
Michigan offers the Great Lakes lifestyle with over 3,000 miles of shoreline, four-season recreation, and affordable housing. Detroit's remarkable comeback has drawn attention, while Grand Rapids and Ann Arbor thrive. The auto industry's EV transition creates both opportunities and uncertainties for the state's economy.
Michigan Real Estate Market
Michigan's housing market has strengthened significantly, with Detroit and Grand Rapids seeing robust appreciation. Detroit's downtown revival has spread to surrounding neighborhoods, though significant disparities remain. The EV transition has attracted major investments from GM, Ford, and battery manufacturers. Northern Michigan lake properties have become increasingly desirable.
Property Taxes in Michigan
Michigan has above-average property taxes with Proposal A limiting increases for existing owners.
Average effective rate: 1.54%
Annual tax on median home: ~$3,696
Homestead exemption: 18-mill school operating tax exemption for primary residence
First-Time Buyer Programs
MSHDA Programs: Michigan State Housing Development Authority offers:
- MI Home Loan - Competitive rates for first-time buyers
- Down Payment Assistance - Up to $7,500
- MI 10K DPA - $10,000 assistance in specific areas
- Mortgage Credit Certificate - Tax credit program
Closing Costs in Michigan
Michigan closing costs are moderate, typically 2-3% of purchase price.
Common costs include:
- Title insurance: Based on purchase price
- Transfer tax: $8.60 per $1,000 (county: $1.10, state: $7.50)
- Recording fees: County-dependent
- Survey: Often required
Frequently Asked Questions
Detroit offers extremely low entry points and high rental yields in stable neighborhoods. The city's revival is real but uneven. Due diligence on specific neighborhoods, property conditions, and rental regulations is essential.
Proposal A (1994) limits annual increases in taxable value to 5% or inflation, whichever is lower, for existing owners. When property sells, it's reassessed to market value, which can significantly increase taxes for new buyers.
Major EV and battery investments in Michigan have boosted employment and housing demand in affected areas. Cities near new plants have seen increased interest from workers and investors.