Top 5 Best Real Estate Investment Markets in Michigan

Ben Mizes

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Ben Mizes

May 11th, 2022
Updated May 11th, 2022

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The real estate market in Michigan is very hot, making it an ideal time for current and aspiring investors to purchase property in the Wolverine State. To minimize your risk and maximize your chances of high ROI, learn more about the top five Michigan cities experiencing growth that you should invest in.

Top 5 Best Real Estate Investment Markets in Michigan

Real estate investing can be a lucrative opportunity, particularly if you do your market research and act quickly when the right properties come along. Right now, the market in Michigan is very hot, favoring sellers and property owners, making it a decent time to buy and flip a house.

While most of Michigan is experiencing market growth, it’s important to do focused research on the hottest areas in the Wolverine State, to ensure your investment risk is minimal.

If you’ve been thinking about investing in Michigan, we've listed five markets that are favorable for investors, and offer tips on how to find profitable deals.

Top 5 Real Estate Markets in Michigan

1. Ann Arbor

Ann Arbor is a charming city and home to the University of Michigan and several science-based and cultural attractions. West of Detroit, Ann Arbor has been experiencing overall population growth in the past nine years.

Over the past year, the job market in Ann Arbor has increased by 1.3% and is expected to increase by 38.1% over the next 10 years. The unemployment rate is also at 3.5%, below the U.S. average.

Currently, the local market in Ann Arbor is extremely hot, favoring sellers and property owners. According to Zillow data, median home values are at $470,751, up 12.6% from the past year. Average monthly rent prices range from $1030 for a studio to $2,110 for a 4-bedroom unit.

Investors should look into buying property in top neighborhoods in Ann Arbor, including downtown, South Main, West Park, Lower Burns Park, and the Old West Side.

»FIND: Top Real Estate Agents in Ann Arbor

2. Sterling Heights

Another top city investors should explore is Sterling Heights. Located right across the border from Canada, this bustling Detroit suburb is experiencing great growth right now, with the population up 1.8% since 2010.

Sterling Heights has seen subtle increases in job growth, up 0.2% since last year, with a 37.6% prediction for growth over the next 10 years. The unemployment rate in Sterling Heights is also low, clocking in at 4.80%.

The local market in Sterling Heights is very hot right now. The median home value is $276,559, up 13.7% from last year. Likewise, rent prices have also increased, averaging $1,300 across the city.

This suburb is a great area for investors to look into thanks to low crime rates, great schools, and easy access to entertainment, transit, and amenities.

»FIND: Top Real Estate Agents in Sterling Heights

3. Grand Rapids

One of the most well-known cities in Michigan, Grand Rapids is located along Grand River, is a community that has blended arts and nature. As a result, residents can enjoy a variety of gardens and cultural museums. The charming city has experienced a 8.30% population increase since 2010.

Over the past year, Grand Rapids has experienced a 2% increase in the number of jobs and should increase by another 35.8% over the next 10 years. Sales tax here is also lower than the U.S. average, clocking in at 6%.

The local real estate market in Grand Rapids is currently hot, with home values having increased by 17.1% over the past year to $252,688. Values will continue to increase over the next year. Rent prices are also up, averaging around $1,450 per month.

The top neighborhoods investors should look into in Grand Rapids include Ottawa Hills, Eastgate, Eastown, Fulton Heights, and South Hill.

»FIND: Top Real Estate Agents in Grand Rapids

Make money off Michigan investment property.

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4. Warren

Warren is the third largest city in the state of Michigan and the largest suburb in the Detroit metro area. Located along the Detroit River, this expansive city has decreased just slightly in population since 2010.

While the population dropped slightly, Warren’s job market has improved. Over the next 10 years, the number of jobs in Warren is predicted to increase by 35.1%.

The local real estate market in Warren is also booming, with the advantage going to sellers and property owners. Home values have increased by 11% over the past year to a median value of $179,281, making Warren a more affordable market for investors. Rent prices average $1,000 per month across Warren, with metro areas seeing an average of $1,150 per month.

Investors will be able to rent properties or resell homes for the highest prices along East 13 Mile Road, Chicago Road, and Bunert Road in Warren.

»FIND: Top Real Estate Agents in Warren

5. Lansing

The capital city of Michigan, Lansing is a historic area that’s home to a popular zoo, handful of museums, and renowned science center. This busy city is home to 115,222 residents and is expected to grow in population over the next decade.

Lansing's job growth is expected to climb 32.4% over the next 10 years. Sales tax in Lansing is also below the U.S. average at 6%.

Right now, the local real estate market in Lansing is very hot, favoring rental property owners and sellers. Home values have increased by 16.1% over the past year and currently stand at $139,197, making Lansing an affordable option for investors.

Some of the best neighborhoods in high demand in Lansing include Delta River Drive and Josette Lane, South Dewitt Road and West Clark Road, and Lochewoode Court and Moorwood Drive.

»FIND: Top Real Estate Agents in Lansing

How to Find Investment Property in Michigan

The best investment deals in Michigan are usually off-market properties, including foreclosures, pre-forecloses, short-sales, and abandoned or neglected properties. Here's how to find them.

1. Use real estate investment software

One of the biggest challenges of flipping homes or finding rental properties in Michigan is finding great deals, as it's a strong seller's market with limited inventory.

Real estate software or apps can help you find deals. Popular real estate software or websites for investors to consider include:

DealMachine: DealMachine's app helps Michigan investors find and research distressed homes (think: pre-foreclosures, foreclosures, short sales, etc), and get in touch with owners fast via batch skip tracing and direct mail campaigns.

Its driving for dollars app is fast and easy to use. When you're driving around town and spot a home that looks like it could be a great deal, pull up the DealMachine app to get the owner's contact info. or send the owner direct mail (no post office visits required).

Download the DealMachine app to find undervalued Michigan properties as you drive, and read our DealMachine review for more information.

The company offers a 7-day free trial and $15 in free credits that can be used towards marketing (like sending out direct mail to homeowners).

Flipster: Primarily targeting house flippers, this app helps user find motivated seller leads, while also providing valuable comparable property information to help you estimate a home's fair market value before making an offer.

Flipperforce: The Flipperforce app helps BRRRR method investors analyze home values to calculate the maximum purchase price to offer on a property before making a purchase.

Zillow foreclosure center: Zillow makes it easy to find foreclosed and bank-owned properties in your area. However, unlike off-market properties you'd find on DealMachine and other software, most of Zillow's properties are publicly listed - meaning you'll likely face stiff competition from other investors.

Find properties that meet your criteria with DealMachine

2. Partner with an investor-friendly realtor

Partnering with an investor-friendly realtor is the best way to ensure a favorable, easy home purchase.

Agents have expertise in Michigan's variety of markets, understand real estate laws and practices specific to the state, and can provide access to lesser-known neighborhoods and properties that just may be your dream investment.

Clever's real estate agents can guide you through Michigan's real estate market and make your house hunting journey a breeze - and eligible buyers can get back 0.5% of their home's purchase price after closing, potentially saving you thousands on your home purchase.

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