Michigan Housing Market Vitality

Market Rank


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 strengthened. Current local economic conditions support an estimated 8.3% 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.

Ann Arbor, MI Underperforming Negative 365
Battle Creek, MI Tracking Neutral 219
Bay City, MI Outperforming Neutral 120
Detroit-Dearborn-Livonia, MI Outperforming Positive 121
Flint, MI Outperforming Positive 99
Grand Rapids-Wyoming, MI Outperforming Positive 82
Jackson, MI Tracking Negative 199
Kalamazoo-Portage, MI Tracking Negative 218
Lansing-East Lansing, MI Tracking Positive 109
Midland, MI Underperforming Positive 176
Monroe, MI Outperforming Negative 167
Muskegon, MI Outperforming Neutral 110
Niles-Benton Harbor, MI Tracking Negative 209
Saginaw, MI Underperforming Negative 281
South Bend-Mishawaka, IN-MI Outperforming Negative 166
Warren-Troy-Farmington Hills, MI Underperforming Positive 174

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.


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.

Updated July 30, 2021 with data through June 2021