Yahoo Finance Could You Afford a Vacation Home in Michigan? Check Out the Prices in These 5 Cities
Michigan’s natural beauty makes it a top tourist destination in the United States, hosting over 125 million annual visitors. Despite the many attractions, the real estate market is currently undervalued compared to national averages, potentially making it a good choice for people looking to buy a vacation home for their own use or for future investment.
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The median home value in Michigan is $245,683, according to Zillow, well below the national average of $358,734. Besides having lower-than-average home prices, last year’s market saw a modest increase of 6%, so it may be worth checking out where you could afford to buy a vacation home in Michigan in 2024, if you don’t want to live there year-round.
Here’s an overview of the best vacation spots in Michigan and their average home values.
Traverse City: Best Place To Buy a Lake House
Average home value: $427,311
Value change over the past year: +7.6%
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Why Vacation in Traverse City?
Traverse City sits on the banks of Lake Michigan and boasts a wide range of activities for families, couples and all vacationers to enjoy year-round.
A food and drink destination, the lakeshore city is known as the Cherry Capital of the World and hosts the National Cherry Festival, attracting around half a million visitors annually. In recent years, Traverse City has also earned a reputation for the quality of its surrounding wineries and hosts a wine festival to celebrate the region’s wines every year. Other popular activities include attending the Traverse City Film Festival or taking a day trip to visit the nearby Sleeping Dunes National Lakeshore.
All of these highlights make Traverse City one of the best places to buy a lake house in the U.S. It’s hard to beat living in a naturally beautiful, culturally rich waterfront destination that features home values right around the median national price — which is $433,558, according to Redfin.
Grand Haven: Best for a Beachfront Summer Vacation
Average home value: $360,697
Value change over the past year: +0.8%
Why Vacation in Grand Haven?
Grand Haven is a small beach town located on the eastern shore of Lake Michigan, home to around 11,000 residents. While it might sound like a sleepy town due to its low population, Grand Haven is a popular summer destination for people who love the sun and the outdoors.
Whether you prefer to take a bike ride along a stretch of the city’s 100 miles of bike trails, charter a fishing boat or relax on a beautiful sandy beach, Grand Haven has you covered. Popular tourist attractions include a historic lighthouse and pier built in 1839, a beloved musical fountain and the summer Coast Guard festival.
If you can see yourself spending the summer by going to the beach to soak up the sun and taking leisurely strolls through a lively, historic downtown neighborhood, then Grand Haven might deserve a spot on your short list. Home prices are relatively affordable, falling well below the national median sales price.
Ann Arbor: Best for Investing in a Vacation Rental
Average home value: $508,176
Value change over the past year: +6.6%
Why Vacation in Ann Arbor?
Ann Arbor is a historic town near Detroit known for its rich arts and culture scene, home to dozens of galleries, museums and performing arts venues that provide entertainment and enrichment to the millions of tourists that visit each year.
Culturally diverse with a well-educated population, Ann Arbor is also the location of the University of Michigan, which attracts a huge number of visitors who attend sporting events throughout the year.
Its mix of rural and urban sensibilities and high quality of life ratings mean that Ann Arbor was ranked as the No. 1 best place to live in Michigan in 2023-2024 by U.S. News and World Report. While the average home value is higher than other spots on this list, many see buying a vacation home in Ann Arbor as an investment in a vibrant, growing community.
Mackinac Island: Best place To Buy a Summer House With Historic Charm
Average home value: $443,986
Value change over the past year: +11%
Why Vacation on Mackinac Island?
Ranked as the No. 3 best place to visit in Michigan, Mackinac Island will transport you to a bygone era of horse-drawn carriages and Victorian-era charm. Cars have been banned on the island since 1898, so the island is only accessible by boat, ferry or private plane. If you’re comfortable with walking, riding a bike or even horseback riding, then Mackinac Island is perfect for family vacations or romantic getaways.
Famous for its colonial-era fort, world-famous fudge shops and gorgeous views, Mackinac Island could be a perfect option for those looking for a summer house and who appreciate living life at a slower pace. Many of the island’s attractions shut down during the winter months, so this could be a pro or a con, depending on your priorities.
While home prices on the island are moderately higher than average compared to other Michigan markets, they still fall near the median national home value, making your Victorian-era dream house well within reach.
Holland: Best for Lakefront Living With a European Feel
Average home value: $337,242
Value change over the past year: +3.4%
Why Vacation in Holland?
As its name suggests, Holland has a rich Dutch heritage. Visitors to the town are invited to join residents during the many Dutch holiday celebrations and traditions that occur throughout the year. Between concerts, farmers markets, lake cruises and museums, there’s always something to do in Holland.
Whether visiting the Windmill Island Gardens or enjoying the breathtaking bloom of millions of tulips, tourists and long-time residents alike appreciate the town’s lively, friendly atmosphere. Holland is located on the shores of Lake Macatawa, just off Lake Michigan, so there’s no shortage of outdoor activities for the whole family.
Average home values and year over year value changes were sourced from Zillow, unless otherwise stated.
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