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 perfect time for investors to jump into the game.
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. Partnering with a good real estate agent can help ensure your investment is as sound as possible.
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 2.6%, well below the U.S. average of 3.9%.
Currently, the local market in Ann Arbor is extremely hot, favoring sellers and property owners. According to Zillow data, median home values are at $382,700, up 8.7% from the past year, and predicted to continue increasing by 4.8% over the next 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.
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 3.8%.
The local market in Sterling Heights is very hot right now. The median home value is $208,100, 6.7% higher than last year. Home values are also expected to increase by another 3.2% over the next 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.
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 2.6% increase in population growth since 2019.
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 11.6% over the past year to $161,900. Values will continue to increase by another 5.8% 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.
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 $137,900, and are expected to increase by another 5.8% over the next year. 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.
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 has experienced a 1.3% increase in the number of jobs available over the last year and it’s expected to continue growing by another 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 7.6% over the past year and currently stand at $87,600. Values are expected to continue increasing by another 2.1% over the next 12 months. Rent prices average $825 per month overall, but are slightly higher in metro areas, averaging $949 per month.
Some of the best and safest 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.
Before searching for an investment property in Michigan, it’s important to understand local market trends. An experienced local agent with a history in finding investment properties can help you make smart decisions.
Local agents have a good understanding of the market trends and can help you better time your purchase and sale. They can also help you find ideal investment properties quickly before other buyers have the chance to swoop in.