Housing

Since the Pandemic, Home Prices Have Doubled in These Michigan Cities

Sam Stebbins

Published: September 13, 2024 11:24 am

24/7 Wall St. Insights

• Since the start of the COVID-19 pandemic, supply and demand dynamics have sent home prices surging by nearly 38% nationwide and about 37% in Michigan.
• But location matters in the U.S. housing market, and in some parts of Michigan, list price increases have been far more modest than in others.
• Also: 2 Dividend Legends To Hold Forever

The COVID-19 pandemic was a public health crisis of a scale and magnitude unlike any other in modern American history. Even though more than a year has passed since the end of the COVID-19 national emergency, the U.S. is still grappling with many of the pandemic’s economic knock-on effects — most notably, a surge in housing costs. According to data from Realtor.com, the median list price among all homes on the market in the U.S. was $439,950 in July 2024, up nearly $121,000 from the beginning of the pandemic in March 2020.

Due to pandemic-related work restrictions, in addition to supply chain issues, new-home construction has not kept pace with demand in recent years, exacerbating an already decades-old housing shortage. According to estimates from The Pew Charitable Trusts, closing the gap would require between 4 to 7 million new homes. Now, with mortgage rates at historic highs, many homeowners who are locked in at lower rates are reluctant to sell, further limiting housing inventory.

The surge in home prices has been driven not only by supply constraints, but also rising demand. The shift to remote work, in addition to social distancing rules, confined millions of Americans to their homes during the pandemic — and resulted in a spike in home sales. In October 2020, the sales volume of new, single-family homes topped 1.03 million, a high not seen in nearly a decade and a half.

Few parts of the country have been spared from surging home prices. In Michigan, the median list price among all homes on the market was $308,450 in July 2024, up 37.1% — or $83,500 — from the start of the pandemic. (Here is a look at the most affordable housing market in each state.)

Notably, when it comes to the housing costs, location matters — and in some parts of Michigan, housing prices have climbed much faster than average. In others, meanwhile, increases have been far more modest. Of the 29 metropolitan and combined statistical areas in the state with available data, median list prices have increased anywhere from 11.1% to 133.3% since the start of the pandemic. In these same communities, a typical home now costs anywhere from $20,050 to $158,275 more than it did in March 2020. (Here is a look at the 23 cities where most homes are selling for less than $125,000.)

It is important to note that the cities reporting the most significant increases in home prices are not necessarily the most expensive cities in which to buy a home. For example, there are five metro areas in Michigan where most homes were listed for over $400,000 in July 2024, and none of them rank among the 10 cities on this list with the largest price increases.

This is how home prices have changed since the pandemic in every city in Michigan. Cities are ranked by the percent change in the media list prices from March 2020 to July 2024.

Why It Matters

Since the start of the pandemic, limited supply and rising demand have fueled a surge in home prices. Now, with mortgage rates at their highest levels in over a decade, many would-be sellers are staying out of the market, further exacerbating a long-standing inventory shortage. Historically, homeownership has been a reliable means of building wealth — but rising prices and elevated borrowing costs have priced millions of Americans out of the market. Still, location matters in the real estate business, and some parts of Michigan have borne the brunt of rising prices, while others have been largely shielded.

29. Flint, MI

• Change in median list price since start of pandemic: +11.1% (+$20,050)
• Median home list price: $199,950 in July 2024; $179,900 in March 2020
• Median list price per square foot: $131 in July 2024; $107 in March 2020
• Size of a typical listed home: 1,390 sq. ft. in July 2024; 1,621 sq. ft. in March 2020

28. Detroit-Warren-Dearborn, MI

• Change in median list price since start of pandemic: +17.7% (+$42,100)
• Median home list price: $279,950 in July 2024; $237,850 in March 2020
• Median list price per square foot: $185 in July 2024; $140 in March 2020
• Size of a typical listed home: 1,531 sq. ft. in July 2024; 1,604 sq. ft. in March 2020

27. Iron Mountain, MI-WI

• Change in median list price since start of pandemic: +22.8% (+$32,525)
• Median home list price: $174,925 in July 2024; $142,400 in March 2020
• Median list price per square foot: $131 in July 2024; $87 in March 2020
• Size of a typical listed home: 1,536 sq. ft. in July 2024; 1,555 sq. ft. in March 2020

26. Traverse City, MI

• Change in median list price since start of pandemic: +27.3% (+$103,825)
• Median home list price: $483,725 in July 2024; $379,900 in March 2020
• Median list price per square foot: $321 in July 2024; $208 in March 2020
• Size of a typical listed home: 1,618 sq. ft. in July 2024; 1,618 sq. ft. in March 2020

25. Niles, MI

Niles Depot (CC BY 2.0) by FotoGuy 49057

• Change in median list price since start of pandemic: +30.8% (+$100,700)
• Median home list price: $427,700 in July 2024; $327,000 in March 2020
• Median list price per square foot: $205 in July 2024; $158 in March 2020
• Size of a typical listed home: 1,962 sq. ft. in July 2024; 1,962 sq. ft. in March 2020

24. Midland, MI

• Change in median list price since start of pandemic: +32.9% (+$75,275)
• Median home list price: $303,750 in July 2024; $228,475 in March 2020
• Median list price per square foot: $163 in July 2024; $109 in March 2020
• Size of a typical listed home: 1,747 sq. ft. in July 2024; 1,832 sq. ft. in March 2020

23. Ann Arbor, MI

• Change in median list price since start of pandemic: +35.1% (+$139,841)
• Median home list price: $538,791 in July 2024; $398,950 in March 2020
• Median list price per square foot: $240 in July 2024; $196 in March 2020
• Size of a typical listed home: 2,146 sq. ft. in July 2024; 2,100 sq. ft. in March 2020

22. Mount Pleasant, MI

• Change in median list price since start of pandemic: +37.6% (+$68,225)
• Median home list price: $249,450 in July 2024; $181,225 in March 2020
• Median list price per square foot: $139 in July 2024; $94 in March 2020
• Size of a typical listed home: 1,713 sq. ft. in July 2024; 1,834 sq. ft. in March 2020

21. Holland, MI

• Change in median list price since start of pandemic: +39.6% (+$133,675)
• Median home list price: $471,175 in July 2024; $337,500 in March 2020
• Median list price per square foot: $225 in July 2024; $168 in March 2020
• Size of a typical listed home: 2,069 sq. ft. in July 2024; 1,984 sq. ft. in March 2020

20. Kalamazoo-Portage, MI

• Change in median list price since start of pandemic: +40.6% (+$114,550)
• Median home list price: $396,950 in July 2024; $282,400 in March 2020
• Median list price per square foot: $173 in July 2024; $123 in March 2020
• Size of a typical listed home: 2,028 sq. ft. in July 2024; 2,068 sq. ft. in March 2020

19. Grand Rapids-Kentwood, MI

• Change in median list price since start of pandemic: +41.7% (+$125,000)
• Median home list price: $424,900 in July 2024; $299,900 in March 2020
• Median list price per square foot: $207 in July 2024; $148 in March 2020
• Size of a typical listed home: 2,038 sq. ft. in July 2024; 2,027 sq. ft. in March 2020

18. Big Rapids, MI

• Change in median list price since start of pandemic: +43.2% (+$86,300)
• Median home list price: $286,000 in July 2024; $199,700 in March 2020
• Median list price per square foot: $171 in July 2024; $103 in March 2020
• Size of a typical listed home: 1,800 sq. ft. in July 2024; 1,840 sq. ft. in March 2020

17. Monroe, MI

• Change in median list price since start of pandemic: +45.2% (+$94,950)
• Median home list price: $304,900 in July 2024; $209,950 in March 2020
• Median list price per square foot: $178 in July 2024; $125 in March 2020
• Size of a typical listed home: 1,743 sq. ft. in July 2024; 1,675 sq. ft. in March 2020

16. Sturgis, MI

• Change in median list price since start of pandemic: +48.2% (+$88,500)
• Median home list price: $271,925 in July 2024; $183,425 in March 2020
• Median list price per square foot: $149 in July 2024; $97 in March 2020
• Size of a typical listed home: 1,849 sq. ft. in July 2024; 1,783 sq. ft. in March 2020

15. Houghton, MI

• Change in median list price since start of pandemic: +52.5% (+$95,500)
• Median home list price: $277,500 in July 2024; $182,000 in March 2020
• Median list price per square foot: $141 in July 2024; $107 in March 2020
• Size of a typical listed home: 1,867 sq. ft. in July 2024; 1,604 sq. ft. in March 2020

14. Cadillac, MI

• Change in median list price since start of pandemic: +53.2% (+$99,775)
• Median home list price: $287,225 in July 2024; $187,450 in March 2020
• Median list price per square foot: $161 in July 2024; $100 in March 2020
• Size of a typical listed home: 1,703 sq. ft. in July 2024; 1,618 sq. ft. in March 2020

13. Lansing-East Lansing, MI

• Change in median list price since start of pandemic: +58.5% (+$95,925)
• Median home list price: $259,900 in July 2024; $163,975 in March 2020
• Median list price per square foot: $147 in July 2024; $99 in March 2020
• Size of a typical listed home: 1,757 sq. ft. in July 2024; 1,664 sq. ft. in March 2020

12. Ludington, MI

• Change in median list price since start of pandemic: +60.5% (+$143,000)
• Median home list price: $379,500 in July 2024; $236,500 in March 2020
• Median list price per square foot: $223 in July 2024; $124 in March 2020
• Size of a typical listed home: 1,762 sq. ft. in July 2024; 1,611 sq. ft. in March 2020

11. Sault Ste. Marie, MI

• Change in median list price since start of pandemic: +64.1% (+$102,550)
• Median home list price: $262,450 in July 2024; $159,900 in March 2020
• Median list price per square foot: $171 in July 2024; $115 in March 2020
• Size of a typical listed home: 1,514 sq. ft. in July 2024; 1,404 sq. ft. in March 2020

10. Adrian, MI

• Change in median list price since start of pandemic: +72.3% (+$120,200)
• Median home list price: $286,350 in July 2024; $166,150 in March 2020
• Median list price per square foot: $157 in July 2024; $109 in March 2020
• Size of a typical listed home: 1,794 sq. ft. in July 2024; 1,679 sq. ft. in March 2020

9. Muskegon, MI

• Change in median list price since start of pandemic: +73.7% (+$137,300)
• Median home list price: $323,700 in July 2024; $186,400 in March 2020
• Median list price per square foot: $180 in July 2024; $106 in March 2020
• Size of a typical listed home: 1,484 sq. ft. in July 2024; 1,550 sq. ft. in March 2020

8. Jackson, MI

• Change in median list price since start of pandemic: +79.1% (+$118,575)
• Median home list price: $268,475 in July 2024; $149,900 in March 2020
• Median list price per square foot: $149 in July 2024; $91 in March 2020
• Size of a typical listed home: 1,796 sq. ft. in July 2024; 1,595 sq. ft. in March 2020

7. Marquette, MI

• Change in median list price since start of pandemic: +80.4% (+$153,050)
• Median home list price: $343,500 in July 2024; $190,450 in March 2020
• Median list price per square foot: $190 in July 2024; $128 in March 2020
• Size of a typical listed home: 1,676 sq. ft. in July 2024; 1,534 sq. ft. in March 2020

6. Battle Creek, MI

• Change in median list price since start of pandemic: +80.6% (+$117,600)
• Median home list price: $263,573 in July 2024; $145,973 in March 2020
• Median list price per square foot: $153 in July 2024; $86 in March 2020
• Size of a typical listed home: 1,622 sq. ft. in July 2024; 1,690 sq. ft. in March 2020

5. Hillsdale, MI

• Change in median list price since start of pandemic: +82.3% (+$135,325)
• Median home list price: $299,675 in July 2024; $164,350 in March 2020
• Median list price per square foot: $157 in July 2024; $90 in March 2020
• Size of a typical listed home: 1,754 sq. ft. in July 2024; 1,740 sq. ft. in March 2020

4. Coldwater, MI

• Change in median list price since start of pandemic: +84.5% (+$125,975)
• Median home list price: $274,975 in July 2024; $149,000 in March 2020
• Median list price per square foot: $152 in July 2024; $89 in March 2020
• Size of a typical listed home: 1,744 sq. ft. in July 2024; 1,682 sq. ft. in March 2020

3. Alma, MI

• Change in median list price since start of pandemic: +112.0% (+$124,025)
• Median home list price: $234,725 in July 2024; $110,700 in March 2020
• Median list price per square foot: $119 in July 2024; $70 in March 2020
• Size of a typical listed home: 1,807 sq. ft. in July 2024; 1,576 sq. ft. in March 2020

2. Bay City, MI

• Change in median list price since start of pandemic: +122.0% (+$114,025)
• Median home list price: $207,500 in July 2024; $93,475 in March 2020
• Median list price per square foot: $129 in July 2024; $72 in March 2020
• Size of a typical listed home: 1,591 sq. ft. in July 2024; 1,400 sq. ft. in March 2020

1. Escanaba, MI

• Change in median list price since start of pandemic: +133.3% (+$158,275)
• Median home list price: $277,000 in July 2024; $118,725 in March 2020
• Median list price per square foot: $148 in July 2024; $83 in March 2020
• Size of a typical listed home: 1,780 sq. ft. in July 2024; 1,480 sq. ft. in March 2020