DEARBORN
As of May 2025, Dearborn, Michigan, presents a dynamic real estate market characterized by affordability, steady appreciation, and strong buyer interest. Here’s a concise overview for prospective buyers, sellers, and investors:
Market Snapshot
Average Home Value | Median Listing Price | Median Sold Price | Median Days on Market: |
Approximately $243,752, reflecting a 6.9% increase over the past year. | Around $266,567 as of April 2025. | Approximately $265,000, marking a 6.2% year-over-year rise. | Homes typically go pending in about 10 days, indicating a competitive market. |
1. Affordability with Appreciation
Dearborn remains more affordable compared to national averages, with home prices significantly lower than the U.S. median. This affordability, coupled with steady appreciation, positions the city as an attractive option for first-time buyers and investors.
2. Neighborhood Variations
Home values vary across neighborhoods:
- Dearborn Hills: Median listing price of $399,900, down 9% year-over-year.
- Highland: Median listing price of $350,000, offering options for mid-range buyers.
These disparities offer diverse options for buyers with varying budgets.
3. Rental Market Dynamics
Average Rent: Approximately $1,200, which is 43% lower than the national average.
Rental Vacancy Rate: Around 3%, indicating a relatively tight rental market.
Renter Demographics: Renters constitute about 51% of Dearborn’s housing market, with a median household income of $28,992.
Investment
Steady Appreciation: Home values have shown consistent growth, with forecasts suggesting continued moderate increases.
High Demand: The city's economic vitality and population growth 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 downtown or the University of Michigan-Dearborn campus.