Lansing is home to the best residential real estate investment market in Michigan.
The 48915 zip code in Lansing presents the greatest opportunity for the best real estate investments among the 1,872 individual real estate markets in Michigan we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
5 best places to invest in Michigan
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1. Lansing
We've identified the 48915 zip code in Lansing as Michigan's best real estate investment market. Here's why.
🔎 Key data about Lansing
| Data point | Value | Rank in state (of 1,872 markets) |
|---|---|---|
| Zip code | 48915 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $113,933[1] | 39th lowest |
| Five-year appreciation | 59.26%[2] | 76th highest |
| Household income | $54,583[3] | 376th highest |
| Affordability ratio | 2.1 | 23rd most affordable |
| Five-year population growth | 1.5%[4] | 225th highest |
| Unemployment rate | 4.1%[5] | 140th lowest |
| Property taxes | $2,185[6] | 170th lowest |
| Educational attainment | 34.6%[7] | 150th highest |
Lansing (zip code 48915) is the best residential real estate investment market in Michigan. It has the 76th highest property value appreciation among markets we evaluated, with a 59.26% appreciation of the typical property over the last five years.
Lansing is the 23rd most affordable market among the 1,872 Michigan markets we evaluated, with an affordability ratio of 2.1.
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2. Ironwood
The 49938 zip code in Ironwood is the runner-up spot for the best real estate investments in Michigan.
🔎 Key data about Ironwood
| Data point | Value | Rank in state (of 1,872 markets) |
|---|---|---|
| Zip code | 49938 | N/A |
| InvestScore | 99.1 | 2nd highest |
| Typical property value | $93,591[8] | 29th lowest |
| Five-year appreciation | 80.17%[9] | 7th highest |
| Household income | $43,990[10] | 425th highest |
| Affordability ratio | 2.1 | 24th most affordable |
| Five-year population growth | 2.5%[11] | 192nd highest |
| Unemployment rate | 8%[12] | 380th lowest |
| Property taxes | $1,473[13] | 45th lowest |
| Educational attainment | 23.8%[14] | 260th highest |
The 49938 zip code in Ironwood features a typical property value of $93,591, the 29th lowest in the state.
Property values have appreciated 80.17% over the past five years, the 7th highest increase among evaluated markets in the state. Ironwood homes have an affordability ratio of 2.1, the 24th most affordable in the state.
3. Kingsford
The 49802 zip code in Kingsford comes in at No. 3 in our ranking of the best residential real estate investment markets in Michigan.
🔎 Key data about Kingsford
| Data point | Value | Rank in state (of 1,872 markets) |
|---|---|---|
| Zip code | 49802 | N/A |
| InvestScore | 98 | 3rd highest |
| Typical property value | $136,010[15] | 51st lowest |
| Five-year appreciation | 56.43%[16] | 90th highest |
| Household income | $58,290[17] | 337th highest |
| Affordability ratio | 2.3 | 29th most affordable |
| Five-year population growth | -3.0%[18] | 363rd highest |
| Unemployment rate | 3.2%[19] | 68th lowest |
| Property taxes | $1,667[20] | 79th lowest |
| Educational attainment | 21.7%[21] | 295th highest |
With a typical property value of $136,010, Kingsford's 49802 zip code features the 51st lowest property values in the state.
Kingsford homes have an affordability ratio of 2.3, the 29th most affordable among the markets we evaluated.
4. Redford
The 48239 zip code in Redford ranks No. 4 among Michigan's residential real estate investment markets.
🔎 Key data about Redford
| Data point | Value | Rank in state (of 1,872 markets) |
|---|---|---|
| Zip code | 48239 | N/A |
| InvestScore | 95.1 | 4th highest |
| Typical property value | $167,484[22] | 102nd lowest |
| Five-year appreciation | 55.60%[23] | 96th highest |
| Household income | $67,570[24] | 96th highest |
| Affordability ratio | 2.5 | 40th most affordable |
| Five-year population growth | 4.6%[25] | 132nd highest |
| Unemployment rate | 5.3%[26] | 252nd lowest |
| Property taxes | $2,376[27] | 196th lowest |
| Educational attainment | 22.5%[28] | 282nd highest |
Property values in Redford's 48239 zip code have seen the 96th highest increase among evaluated markets in the state, with an appreciation of 55.60% over the past five years.
Redford's affordability ratio of 2.5 makes it the 40th most affordable among the 1,872 markets we evaluated.
5. Mancelona
The 49659 zip code in Mancelona rounds out our top five residential real estate investment markets in Michigan.
🔎 Key data about Mancelona
| Data point | Value | Rank in state (of 1,872 markets) |
|---|---|---|
| Zip code | 49659 | N/A |
| InvestScore | 94.8 | 5th highest |
| Typical property value | $175,443[29] | 114th lowest |
| Five-year appreciation | 71.07%[30] | 27th highest |
| Household income | $59,578[31] | 27th highest |
| Affordability ratio | 2.9 | 123rd most affordable |
| Five-year population growth | 5.8%[32] | 102nd highest |
| Unemployment rate | 6.7%[33] | 332nd lowest |
| Property taxes | $1,366[34] | 27th lowest |
| Educational attainment | 17.5%[35] | 359th highest |
Property values in Mancelona's 49659 zip code rose 71.07% over the last five years, ranking the city 27th highest among evaluated markets in Michigan.
Mancelona homes have an affordability ratio of 2.9, the 123rd most affordable among the markets we evaluated.
Investing in residential real estate can be one of the best passive real estate investments in Michigan.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Michigan
To determine the best real estate investments in Michigan we evaluated 1,872 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Michigan.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.
🚨 Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
