Best Affordable Places to Live in Michigan in 2024

Best Places to Live in Michigan

Budget, age, and family makeup — even whether you love water sports or like cross-country skiing — can affect how well-suited you are for a certain Michigan city. Most Michigan cities are on the smaller size (Detroit being the exception). If you like smaller-city or small-town living and don’t mind cold and snowy winters, there are many best places to live on the map for you.

Best Affordable Places to Live in Michigan

To start, let’s have a look at some of the most affordable places to live in Michigan. Comparing Michigan to other possible locations for your move? Check out the cost of living across the 50 states.

1. Jackson

Photo credit: iStock/DenisTangneyJr

If you’d like to land somewhere that isn’t quite a small town or a big city, then Jackson might be exactly what you’re looking for. With more than 31,000 residents, this is by no means tiny, but you won’t have to worry about the hustle and bustle of a big city. Top employers include CMS Energy Corporation and Allegiance Health. And there is plenty to do outside of work — with multiple museums and parks, you’ll never be bored. Jackson is a top spot for golf lovers, as well.

Population: 31,031

Median Household Income: $38,298

Cost of Living: 83% of U.S. average

Median Rent Price: $900

Home Price-to-Income Ratio: 4.5

Average Property Tax: 1.48%

Housing Affordability: A cool rental market should make it easy for would-be Jackson residents to find an affordable place to rent until they’re ready to buy. You can expect to save a lot compared to renters in towns like Holland, who pay an average of $1,775 per month on rent. The average Jackson home value is an affordable $173,347, far below the national average of $348,126.

2. Kalamazoo

Photo credit: iStock/Sean Pavone

If you are looking for a bigger city feel but still want to keep things affordable, then you’ll appreciate that the rent prices in Kalamazoo start at just $375. This area of Michigan is known for its craft beer, so you can’t miss out on brewery-hopping with the locals.

Population: 72,873

Median Household Income: $44,296

Cost of Living: 77.5 of U.S. average

Median Rent Price: $1,195

Home Price-to-Income Ratio: 1.10

Average Property Tax: 1.80%

Housing Affordability: Even though median rent prices are higher in Kalamazoo ($1,195) compared to smaller cities like Jackson, prices remain reasonable. And the average Kalamazoo home value is an affordable $223,841, well below the national average.

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3. Ann Arbor

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While Ann Arbor isn’t the cheapest place to live in Michigan, it is considered to be very affordable for a big city. Finding a good job shouldn’t be a problem either. Education, health care, and automotive employers dominate, although the area is also home to the headquarters of Domino’s Pizza.

Population: 119,875

Median Household Income: $73,276

Cost of Living: 106% of U.S. average

Median Rent Price: $2,250

Home Price-to-Income Ratio: 3.80

Average Property Tax: 1.84%

Housing Affordability: While at first glance, Ann Arbor may not seem that affordable, if you’re looking to balance big city opportunities and amenities with affordable pricing, Ann Arbor can help you save compared to more expensive cities like East Grand Rapids, which has average rental prices of $2,800 a month.

4. Burton

Housing Affordability: You’ll be hard pressed to find a city with lower rent prices when rentals are so in-demand. Even in a hot rental market, Burton saw a $271 year-over-year drop in rental prices. If you’re looking to purchase a home, to compete more effectively in the market, it may help to go through the mortgage preapproval process before your search heats up.

5. Detroit

Photo credit: iStock/Mark Hewer

Don’t let the idea of big city prices scare you off if you want to live in Michigan. Detroit is the biggest city on our list of the best affordable places to live in Michigan, with rental prices starting as low as $425. For a helpful point of reference — Portland, Oregon, only has about 15,000 more residents than Detroit, but rent prices are 32% higher.

Population: 620,376

Median Household Income: $34,762

Cost of Living: 104.3 of U.S. average

Median Rent Price: $1,200

Home Price-to-Income Ratio: 1.26

Average Property Tax: 2.16%

Housing Affordability: You’ll spend half as much on rent in Detroit ($1,200) compared to other Michigan cities with sky-high rental prices like Troy ($2,119). And sure, there are areas around Detroit where you’re likely to need a jumbo mortgage loan, but home values in metro Detroit fall well below the national average.

Best Places to Live in Michigan for Families

Whether you already have a big brood or are just hoping to start a family one day, you may want to find a family-friendly spot to build a home and life. Here’s our take on the best places to live in Michigan for families.

1. Okemos

Photo credit: iStock/Jacob Boomsma

Families may gravitate to Okemos due to its well-regarded public schools and solid job opportunities in government, healthcare and manufacturing. The latter is thanks to its proximity to the state capital of East Lansing and to Michigan State University.

Population: 25,121

Median Household Income: $83,019

Cost of Living: 85% of U.S. average

Median Rent Price: $1,500

Home Price-to-Income Ratio: 4.2

Average Property Tax: 2.26%

Housing Affordability: Okemos is another example of a Michigan city that has much more affordable housing opportunities compared to pricier cities like Troy (median rent: $2,119), which can offer families on a budget some much-needed relief.

2. Huntington Woods

Housing Affordability: The cool housing market is likely contributing to why Huntington Woods has seen a month-over-month drop of $1,350 in average rental prices. The average home value is $473,014.

3. Beverly Hills

Housing Affordability: A cool rental housing market has contributed to a year-over-year drop of $1,100 in rental prices in Beverly Hills. The average Beverly Hills home value is $508,733. There are first-time homebuyer programs in Michigan that can help make home ownership affordable, and buyers who have previously owned a home can qualify in some cases.

4. Muskegon

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If you have water babies, get ready for sun fun on the sand. Muskegon has a handful of waterfront state parks where you can enjoy days in the sun. Art museums, hiking trails, theme parks, and many other attractions make Muskegon a really cool spot to raise active and curious kids.

Population: 38,220

Median Household Income: $37,827

Cost of Living: 94.7 of U.S. average

Median Rent Price: $985

Home Price-to-Income Ratio: 4.3

Average Property Tax: 1.63%

Housing Affordability: Even with a warm housing market, Muskegon renters are paying less on average than other Michigan cities such as Detroit ($1,200). Buyers find an average home value in this market of $162,403.

5. East Grand Rapids

Housing Affordability: Rental prices in East Grand Rapids can range from $1,680 to $8,100, so families with large housing needs may want to look to a more affordable city like Jackson where prices range from $500 to $3,456. The average home value, at $588,190, is among the higher ones on our list.

Best Places to Live in Michigan for Young Adults

Looking for the best places to live in Michigan for young adults? From cities with great nightlife to ones that have ample career opportunities, we’ve helped you narrow down your search.

1. Ann Arbor

Photo credit: iStock/pawel.gaul

As briefly noted above, there are a lot of great career opportunities in Ann Arbor. There are also a lot of opportunities for young adults to let their hair down and have a little fun. For outdoor enthusiasts, the area offers kayaking, canoeing, and stand-up paddle boarding on the Huron River in the summer, as well as cross-country skiing, snowshoeing, and ice skating in the winter. Young creatives can explore renowned galleries, museums, and theatrical and musical organizations.

Population: 119,875

Median Household Income: $73,276

Cost of Living: 106% of U.S. average

Median Rent Price: $2,250

Home Price-to-Income Ratio: 3.80

Average Property Tax: 1.84%

Housing Affordability: The warm rental market is keeping prices in this popular Michigan city in check — which is likely why Ann Arbor only saw a $51 year-over-year increase in rental prices.

2. East Grand Rapids

Housing Affordability: Housing prices are rising in East Grand Rapids, but the good news is not by much. A year-over-year change of just $100 has been seen in this popular city.

3. Okemos

Photo credit: iStock/Jacob Boomsma

As we mentioned earlier, Okemos is a great spot for families, but it’s also a good area for young adults who are just starting out, thanks to its proximity to East Lansing and the career opportunities there. Low rent prices here are just another plus on the list of the attributes of this town located squarely in the “palm” of Michigan’s mitten-shaped Lower Peninsula.

Population: 25,121

Median Household Income: $83,019

Cost of Living: 85% of U.S. average

Median Rent Price: $1,500

Home Price-to-Income Ratio: 4.2

Average Property Tax: 2.26%

Housing Affordability: Okemos has seen shockingly substantial drops in housing prices thanks to a cool housing market — a $1,000 year-over-year change.

4. Huntington Woods

Housing Affordability: Small town life can come at a high price, but may be the best fit for families. That being said, families on a budget may want to consider a bigger and more affordable city like Ann Arbor. Rent in Huntington Woods is 29% higher than in Ann Arbor.

5. Kalamazoo

Photo credit: iStock/DenisTangneyJr

Young people will appreciate all the fun things to do in Kalamazoo. From breweries to live theater and musical performances to impressive dining destinations, there’s no shortage of ways to fill your nights and weekends. Only 30% of residents are married, so young singles will appreciate the opportunities to meet and mingle with other Kalamazoo residents in the same stage of life.

Population: 72,873

Median Household Income: $44,296

Cost of Living: 77.5

Median Rent Price: $1,195

Home Price-to-Income Ratio: 1

Average Property Tax: 1.80%

Housing Affordability: A cool housing market is keeping prices low in Kalamazoo, which saw a year-over-year drop of $155 in rental prices.

Best Places to Live in Michigan for Retirees

Some of the best places to live in Michigan for retirees are the locations that have low average property taxes, affordable rent prices, and lots of fun things to do in your time off.

1. Petoskey

Photo credit: iStock/Laurent Fady

Most retirees live on a fixed income and may have a tight budget to stick to. Rent prices in Petoskey start at $470, and property taxes come out at under $2,000 a year, making Petoskey an affordable spot for retirees whether they choose to rent or own. There are many opportunities to enjoy arts and culture in the area, and golf and ski resorts are plentiful. The Gaslight District boasts 90 specialty shops.

Population: 5,865

Median Household Income: $60,054

Cost of Living: 84% of U.S. average

Median Rent Price: $550

Home Price-to-Income Ratio: 5.46

Average Property Tax: 1.04%

Housing Affordability: Looking to score a deal? Petoskey’s rent is 14% below the national average. The average home value in Petoskey is $400,824 and has remained relatively flat over the last year.

2. Kalamazoo

Photo credit: iStock/DenisTangneyJr

Retirees just want to have fun and they stand to have a lot of fun in Kalamazoo. Those looking for a slower pace can enjoy the farmer’s markets, antique shops, and museums. Seniors looking to stay active can hit the hiking and biking trails when they aren’t playing a round of golf or taking their grandkids to one of Kalamazoo’s many parks.

Population: 72,873

Median Household Income: $44,296

Cost of Living: 77.5 of U.S. average

Median Rent Price: $1,195

Home Price-to-Income Ratio: 1

Average Property Tax: 1.80%

Housing Affordability: As briefly noted above, rental prices have been dropping in Kalamazoo due to a cool rental market. Locals have enjoyed a month-over-month drop of $5 in average rental prices, whereas many cities have seen increases.

3. East Grand Rapids

Housing Affordability: Rising rental prices in East Grand Rapids may be caused by the fact that there are very few available rentals at the moment. However, East Grand Rapids renters are still paying less than Huntington Woods renters ($1,600 vs. $2,900).

4. Grand Haven

Photo credit: iStock/John_Wijsman

The best part about retirement is deciding how to spend your many free days and nights. We wouldn’t mind catching a show at the Grand Haven Musical Fountain or strolling down the boardwalk. Retirees who don’t like to drive can catch a ride on the Lakeshore Trolley each summer. And with miles of Lake Michigan beaches, the soft sand and beautiful sunsets make summers in Grand Haven especially inviting.

Population: 10,982

Median Household Income: $52,929

Cost of Living: 94.7 of U.S. average

Median Rent Price: $1,500

Home Price-to-Income Ratio: 6.6

Average Property Tax: 1.37%

Housing Affordability: For those looking to save on rent, Grand Haven offers some affordable housing opportunities compared to Michigan cities like Northville, where rent prices average 29% higher. The average home value, at $348,311, has climbed slightly in the last year.

5. Holland

Photo credit: iStock/csterken

Retirees who dream of the charm of Europe but who also want to stay close to home can find everything they’re looking for in Holland, Michigan. The Dutch heritage of this town is still celebrated today with the preservation of unique architecture, blooming tulip fields, celebratory festivals, and of course, some impressive windmills.

Population: 39,811

Median Household Income: $70,293

Cost of Living: 94.7

Median Rent Price: $1,775

Home Price-to-Income Ratio: 2.5

Average Property Tax: 1.37%

Housing Affordability: Don’t let an average rent price of $1,775 scare you off from the charming town of Holland — you can find much higher sticker shock in Michigan in cities like Huntington Woods with average rent prices of $2,900. Looking to purchase? The average home value is $324,883.

💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.

Best Places to Live in Michigan Near the Beach

1. Grand Haven

Photo credit: iStock/Morgan Somers

Play tourist whenever you feel like it in Grand Haven. Visitors flock there to take advantage of the seven area beaches, as well as its museums, galleries, shops, and restaurants. Make your move here and you can take advantage of everything Grand Haven has to offer, all while enjoying low rent prices starting at $1,100.

Population: 10,982

Median Household Income: $52,929

Cost of Living: 94.7 of U.S. average

Median Rent Price: $1,500

Home Price-to-Income Ratio: 6.6

Average Property Tax: 1.37%

Housing Affordability: A warm rental market contributed to a pleasant $300 drop in rental prices in Grand Haven.

2. Petoskey

Photo credit: iStock/RiverNorthPhotography

Morning strolls by the waterfront Bayfront Park sound like the perfect start to any day. From beach days to water sports, there’s no shortage of ways to take advantage of being so close to the water. And with a median rent price of $550, who can complain?

Population: 5,865

Median Household Income: $60,054

Cost of Living: 84% of U.S. average

Median Rent Price: $550

Home Price-to-Income Ratio: 5.46

Average Property Tax: 1.04%

Housing Affordability: You stand to save a lot of money by moving to Petoskey compared to pricier cities like East Grand Rapids which experiences 80% higher rent prices on average ($2,800).

3. Holland

Photo credit: iStock/Westhoff

As charming as we made Holland sound earlier, we forgot to mention this pretty town is by the water. Enjoy your summer weekends at the beach, or take nice fall walks by the lighthouse. This town really does have a lot of fun activities to keep you entertained no matter what stage of life you’re in.

Population: 72,873

Median Household Income: $44,296

Cost of Living: 77.5 of U.S. average

Median Rent Price: $1,195

Home Price-to-Income Ratio: 1.10

Average Property Tax: 1.37%

Housing Affordability: If you have a desire to move to Holland, you’ll be happy to find out that rental prices are dropping in this area. Holland has seen month-over-month drop of $100 and a year-over-year drop of $25 — likely due to the cool rental market in the area.

4. Muskegon

Photo credit: iStock/Davslens Photography

Being by the water usually comes with sky-high housing prices, but in Muskegon, you can make your waterfront dreams possible on a budget. The median rent price is just $985 and average property taxes are only $1,670, making Muskegon an affordable option for young professionals, retirees, or families.

Population: 38,220

Median Household Income: $37,827

Cost of Living: 94.7

Median Rent Price: $985

Home Price-to-Income Ratio: 4.3

Average Property Tax: 1.63%

Housing Affordability: A warm housing market means there is quite a bit of rental demand in Muskegon, but even so, monthly rental prices dropped by an average of $65 year-over-year. With an average home value of $162,403, Muskegon is a good place to make dreams of home ownership a reality. If this is your first time purchasing a home, consult a home loan help center to learn more about the ins and outs of this transaction.

5. Traverse City

Photo credit: iStock/CT757fan

Traverse City is one of the pricier beachside towns we looked at but for good reasons. Families looking for an outdoorsy home will also appreciate that the area has a well-ranked public school system even as it also offers reasonable property taxes and all the waterfront amenities you could ask for. Residents here can make the most of weekends by indulging in wine tours, sailboat cruises, and hiking. When wine country combines with beaches, you know you’re in for a good time.

Population: 15,702

Median Household Income: $64,033

Cost of Living: 92% of U.S. average

Median Rent Price: $2,100

Home Price-to-Income Ratio: 6.5

Average Property Tax: 1.33%

Housing Affordability: There are plenty of available rentals in Traverse City, which contributes to the cool rental market. However, prices in this lake town are still a lot higher than others like Petoskey ($550). The average home value is $417,714.

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The Takeaway

It’s easy to see that if you want to make Michigan your home, you’ll have no trouble finding the perfect spot no matter what phase of life you currently find yourself in. Take some time to consider whether proximity to a lake is important (there are lots in Michigan!) or whether you want to be in a larger or smaller city.

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FAQ

Where is the most affordable place to live in Michigan?

There are a lot of affordable places to live in Michigan. One of the most affordable is Petoskey, which has a median rent price of just $550 and an average home value of $400,824.

Where is the nicest place to live in Michigan?

While there are plenty of nice places to live in Michigan, it would be hard not to call out the towns of Holland and Traverse City, which offer waterfront access and unparalleled opportunities to enjoy Michigan’s natural beauty.

Is Michigan an affordable state to live in?

Michigan is a fairly affordable state to live in. While it isn’t one of the cheapest states, it also isn’t the most expensive. Housing costs tend to fall significantly below national averages here, and housing is a big chunk of most household budgets, making the Great Lakes State an affordable place to live.

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