ANN ARBOR
As of May 2025, the Ann Arbor real estate market presents a dynamic landscape characterized by high demand, limited supply, and notable price variations across neighborhoods. Here’s an overview to guide prospective buyers, sellers, and investors:
Market Snapshot
Average Home Value | Median Sold Price | Median Listing Price | Average Days on Market |
Approximately $526,671, marking a 3.9% increase over the past year | Around $510,856 as of April 2025, up 2.4% year-over-year | Approximately $578,500, reflecting a slight 1.7% decrease compared to the previous year | Homes typically sell within 6 to 30 days, indicating a competitive market |
1. Supply Constraints Driving Prices
Ann Arbor faces a significant housing shortage, with an estimated need for 10,000 additional units to meet current demand. This imbalance contributes to elevated home prices, which are approximately 78% higher than the Michigan state average.
2. Neighborhood Price Variations
Home values vary notably across different neighborhoods:
- Old West Side: Approximately $583,617.
- Virginia Park: Around $576,282.
- South Maple: More affordable, at about $257,977
These disparities offer diverse options for buyers with varying budgets.
3. Rental Market Competitiveness
The rental sector is notably competitive, with average rents around $2,379, exceeding the national average. The Lansing-Ann Arbor area ranks among the top 10 most competitive rental markets in the U.S., driven by low vacancy rates and high demand.
Investment Considerations
High Demand: The presence of the University of Michigan and a robust tech sector sustain strong housing demand.
Rental Opportunities: Given the competitive rental market, investment properties may yield favorable returns.
Recommendations
For Sellers: The market favors sellers, but pricing competitively remains crucial to attract offers.
For Investors: Focus on areas with strong rental demand and potential for appreciation, such as neighborhoods near the university or tech hubs.