Michigan Housing Market Vitality

Market Rank

seventeen

Michigan metro area house prices are forecasted to track the national market over the next twelve months. Currently, the market is tracking the overall U.S. market. Compared to 12-months ago, Michigan’s housing market has weakened. Current local economic conditions support an estimated 7.5% increase in house prices over the next twelve months. Based on the housing market vitality of the sixteen metro housing markets which comprise it, Michigan’s housing market ranks seventeenth amongst all states and D.C. The three-month outlook is neutral.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

Michigan Metro Housing Markets

Michigan is comprised of sixteen metro housing markets that account for nearly 82% of the state’s population. The Great Lakes State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

METRO AREA SITUATION OUTLOOK US METRO RANK (/402)
Ann Arbor, MI Underperforming Negative 346
Battle Creek, MI Outperforming Negative 169
Bay City, MI Outperforming Positive 92
Detroit-Dearborn-Livonia, MI Outperforming Positive 129
Flint, MI Outperforming Positive 109
Grand Rapids-Wyoming, MI Outperforming Positive 85
Jackson, MI Outperforming Negative 180
Kalamazoo-Portage, MI Tracking Positive 142
Lansing-East Lansing, MI Tracking Neutral 181
Midland, MI Underperforming Negative 302
Monroe, MI Tracking Positive 131
Muskegon, MI Outperforming Positive 62
Niles-Benton Harbor, MI Outperforming Positive 89
Saginaw, MI Tracking Negative 241
South Bend-Mishawaka, IN-MI Outperforming Positive 121
Warren-Troy-Farmington Hills, MI Underperforming Neutral 249

Industry Specialization

Michigan’s state economy is specialized in Manufacturing, Other svcs, and Pro Bus svcs. Mining, Construction, and Information industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Demographics

Compared to the U.S., there is a higher incidence of poverty amongst Michigan residents and they have less purchasing power. There are more high school graduates and a smaller proportion of the population is college educated. Michigan’s population is comparatively less diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Data through February 2021