Ann Arbor, MI Housing Market
AI-powered market intelligence for the Ann Arbor, MI metro area.
PropertyIQ Scores
Ann Arbor, MI Market Analysis
Market Overview
Ann Arbor’s PropertyIQ Score of 77 out of 100 signals a generally strong housing market, though the underlying drivers point to a market that is cooling at the edges. The score is shaped by four main factors: 12-month home value momentum of 6.65%, 3-month home value momentum of -0.86%, median days on market of 37 days, and a 15.3% share of listings with a price cut. In simple terms, home values have risen over the past year, but short-term price movement has turned slightly negative, and a meaningful minority of sellers are reducing asking prices.
Compared with state averages, Ann Arbor is a high-cost, high-income market. The median home value of $423,247 is roughly 57% above the state median of $269,576. The rent index of $2,015 is about 86% above the state average of $1,084. Median household income is $87,156, about 22% above the state figure of $71,149, and the unemployment rate is 4%, one percentage point below the state average of 5%. These metrics show that Ann Arbor has a more expensive housing stock and a stronger income base than Michigan as a whole.
At the same time, the market is not overheating. Homes are selling at a moderate pace, with a median of 37 days on market, but the 15.3% share of listings with a price cut and the 3-month momentum of -0.86% indicate that buyers are gaining some negotiating power. The year-over-year median home value change of $-5 is essentially flat, reinforcing that price growth has paused after the 12-month gain.
Key Trends
The most important trend is the contrast between annual and short-term price movement. The 12-month home value momentum of 6.65% shows that values have risen over the past year, but the 3-month momentum of -0.86% and the year-over-year median home value change of $-5 show that recent movement is flat to slightly negative. This aligns with the 15.3% of listings carrying a price cut, suggesting that some sellers are adjusting to softer immediate demand.
A second trend is the affordability gap relative to the state. Ann Arbor’s median home value is 57% above the state median, while its median household income is only about 22% above the state median. Put another way, the median home value is about 4.9 times the median household income locally, compared with about 3.8 times at the state level. That means housing costs in Ann Arbor require a larger share of income, even after accounting for higher local earnings.
Third, the rental market stands out. The rent index of $2,015 is nearly double the state average of $1,084, which suggests strong rental demand and may help support overall housing demand. It also means that renting in Ann Arbor is expensive relative to the rest of the state, which can push some higher-earning households toward buying.
Finally, inventory and market pace show a balanced but shifting environment. There were 782 homes for sale, and the median days on market of 37 days indicates that well-priced homes are still moving at a moderate pace. However, without historical inventory levels or population growth data—population growth is not available in this dataset—it is difficult to say whether 782 listings represents a meaningful buildup or a normal seasonal level. The 15.3% price-cut share suggests that the balance may be tilting slightly toward buyers.
Who Is This Market For
Ann Arbor is likely best suited to higher-income households, move-up buyers, and investors who are comfortable with a higher cost basis. With a median home value of $423,247 and median household income of $87,156, the local income-to-home-price ratio is tighter than the state average. First-time buyers earning the statewide median income of $71,149 would likely find this market difficult without substantial savings, but households earning at or above Ann Arbor’s median income may be able to enter, especially with the negotiating room indicated by 37 days on market and a 15.3% price-cut share.
Investors may be drawn by the rent index of $2,015, which is roughly 86% above the state average, and by an unemployment rate of 4%, which is below the state average of 5%. That suggests a relatively stable employment base and meaningful rental demand. However, investor buyers should weigh the high median home value and the recent short-term price softness. Move-up buyers may also benefit from the cooling trend, as price cuts and slightly negative 3-month momentum create opportunities to negotiate, while the longer 12-month momentum of 6.65% shows that values have held up over the past year.
Outlook
The most likely near-term outlook for Ann Arbor is one of stabilization with modest cooling. The 12-month home value momentum of 6.65% shows underlying annual strength, but the 3-month momentum of -0.86%, the year-over-year median home value change of $-5, and the 15.3% share of listings with price cuts all point to a market that has lost short-term upward momentum. Median days on market of 37 days suggests homes are still selling, but sellers may need to be realistic on pricing. On the demand side, the unemployment rate of 4%, above-state median household income of $87,156, and a rent index of $2,015 provide support. The main missing piece is population growth, which is not available; without that data, longer-term demand trends cannot be fully assessed. Based only on the numbers provided, Ann Arbor appears likely to see flat to slightly softer prices in the near term rather than rapid appreciation.
AI-generated analysis based on current market data. Last updated September 7, 2026.
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Ann Arbor, MI market data
Ann Arbor, MI Housing Market Overview
Ann Arbor, MI's median home value is $423K, up 6.6% over the past year. Homes here sell in a median 37 days. Its PropertyIQ Score of 77 sits well above the state average of 50, marking a market positioned to outperform its state over the next three years.
PropertyIQ tracks the Ann Arbor, MI housing market through two complementary lenses: price momentum from Zillow home-value trends over 3 and 12 months, and demand pressure from how quickly homes sell and how often sellers cut prices, drawn from Realtor.com. The PropertyIQ Score distills these into one number that predicts how this MI market is set to perform against its state benchmark.
Midwestern housing markets are characterized by affordability and economic diversification. From manufacturing hubs undergoing tech-sector transitions to university towns with stable demand, the region offers value-oriented opportunities with lower entry costs than coastal markets. Within the Midwest, Ann Arbor, MI's PropertyIQ Score of 77 ranks among the Midwest's stronger demand signals.
Each month, PropertyIQ updates its score for Ann Arbor, MI using four inputs: Zillow ZHVI twelve-month and three-month momentum, Realtor.com median days on market, and the Realtor.com share of listings with price cuts. These four signals are combined into a single 1 to 99 score computed across all metro markets and calibrated so 50 represents the state average, making it a direct read of how this market is positioned to perform relative to its state. Momentum here has been positive, with home values up 6.6% over the past year.
Use PropertyIQ's interactive analytics to compare Ann Arbor, MI against any other US metro on its PropertyIQ Score and underlying metrics. Generate a free AI market report, explore historical trends on the graphs page, or see how this market ranks on the scores dashboard.
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ZIP codes in the Ann Arbor, MI metro area
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Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Ann Arbor, MI a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Ann Arbor, MI currently scores 77, a rising-momentum reading that leaves it positioned to outperform its state over the next three years. For buyers, strengthening demand usually means rising competition and firmer prices, so waiting can cost you negotiating room. Backing that up, the median home value here is $423K, up 6.6% over the past year. So whether Ann Arbor, MI is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Ann Arbor, MI?
Ann Arbor, MI's PropertyIQ Score is 77, indicating rising momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 77 places Ann Arbor, MI above its state benchmark.
Are home prices in Ann Arbor, MI rising or falling?
Home prices in Ann Arbor, MI are rising. Over the past year, the median home value increased 6.6%, reaching $423K. Over the latest three months, values slipped 0.9%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Ann Arbor, MI's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Ann Arbor, MI?
In Ann Arbor, MI, homes sell in a median of 37 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 15% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Ann Arbor, MI market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.