10 Most Affordable Housing Markets in Michigan

Michigan is one of the most affordable states in the U.S. with many cities offering homes well under $200,000.

Not bad considering the median home price in the U.S. now exceeds $417,000, says the St. Louis Federal Reserve.

The state has been a haven for homebuyers who might be locked out of homeownership in most areas of the country.

Ready to buy a home? The Great Lakes State could be the place to do it.

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Affordable City and Typical Home Price

1. Flint - $54,241
2. Detroit - $66,891
3. Inkster - $86,902
4. Bay City - $103,236
5. Saginaw - $113,515
6. Pontiac - $114,380
7. Benton Harbor - $129,806
8. Burton - $133,395
9. Lincoln Park - $137,957
10. Lansing - $139,979

1. Flint - $54,241

A mortgage payment in Flint is well under $500* – a claim not many U.S. cities can make. And according to a recent study, it costs $260 per month less to buy a home than to rent.

While the city has seen its struggles, revitalization efforts are underway. Is this a city where homebuyers can lock in low home prices before they rise?

*Payments mentioned in this article do not include taxes, insurance, or HOA dues. Example purposes only. Not a commitment to lend. See methodology for payment details.

Explore Michigan mortgage rates.

2. Detroit - $66,891

Another stalwart of affordability, the mortgage payment for a typical Detroit home weighs in at only $462 according to our methodology.

Regional employers keep 2.3 million people working: some well-known names are Rocket Companies Inc., Stellantis NV, Henry Ford Health, Ford Motor Company, Detroit Public Schools, and more.

3. Inkster - $86,902

At well below $100,000, the typical home in Inkster is a great value. The city's population grew nearly 6% from 2020 to 2021, says Data USA, indicating the potential for future home price increases as demand grows. It could already be happening: Zillow says home prices are up nearly 3% over the past year.

4. Bay City - $103,236

On the tip of Saginaw Bay in Lake Huron, Bay City offers easy access to activities such as boating, fishing, camping, and beachcombing.

Homes here are affordable – for now. Prices have increased over 7% in the past year, says Zillow, but less than 100 homes were on the market as of publication.

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5. Saginaw - $113,515

Just south of Bay City is Saginaw. This city of 43,000 is a center for agriculture and manufacturing. According to our estimates, a mortgage payment in this town is just $784 per month assuming 5% and including mortgage insurance.

6. Pontiac - $114,380

The namesake of the once-famous car brand, Pontiac is now more than just about the auto industry. The city hosts one of the biggest mortgage lenders in the U.S., United Wholesale Mortgage.

GM, Stellantis NV, and Corewell Health are some other notable employers. With such a robust job market, it’s surprising home prices are in the low 100s.

7. Benton Harbor - $129,806

Nearly due west of Detroit, on the other side of Michigan, is Benton Harbor. This smaller town on the shores of Lake Michigan has more than just low home prices. Just a few minutes outside town are areas eligible for the zero-down USDA home loan.

Get pre-approved for your Michigan USDA loan. Start here.

8. Burton - $133,395

Burton home prices are on the rise, increasing over 7% in the past year according to Zillow. Homes are in demand here. The average listing stays on the market just 14 days before going under contract.

9. Lincoln Park - $137,957

A southern Detroit suburb of around 40,000 residents, Lincoln Park is an affordable city with a high quality of life.

Learn how to scuba dive at Scuba Centers of Michigan, visit the famous Chesley’s Bar & Grille, and try local fare at the Lincoln Park Farmers Market. And with an estimated mortgage payment of $952 per month, you’ll have money left over each month to enjoy the city to the fullest.

See how much you can afford in Michigan.

10. Lansing - $139,979

The most “expensive” city on our list still offers a typical home well under $150,000 and a monthly mortgage payment under $1,000 by our estimates. Michigan’s state capital offers plenty of government employment opportunities. Set down roots in one of Michigan’s most historic cities.

Get Pre-approved for Your Michigan Home

Michigan is the perfect mix of quality of life and affordability. With countless miles of shoreline, big cities, and small towns, the state is worth considering as your permanent home.

Get pre-approved for your Michigan home now.

Methodology

To find the 10 most affordable housing markets in Michigan, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for February 2024. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.946%, the average rate published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per mortgage insurance provider MGIC. The stated mortgage payment does not include homeowner’s insurance, property taxes, or HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow’s report.