Home Values in Ann Arbor, Michigan — 2026 Market Report
Updated March 2026 | Balanced Market | +3.4% YoY
The median home value in Ann Arbor, Michigan is $415,000 as of March 2026, which is above the national median of $400,000. Home values in Ann Arbor have increased by 3.4% over the past year and 18.2% over the last five years. With a population of 123,851 and a median household income of $65,250, the price-to-income ratio stands at 6.4x, making Ann Arbor affordable for the average household.
Ann Arbor Housing Market Conditions
| Metric | Ann Arbor | National Avg |
|---|---|---|
| Median Home Value | $415,000 | $400,000 |
| YoY Appreciation | +3.4% | +3.8% |
| 5-Year Appreciation | +18.2% | +22.4% |
| Price per Sq Ft | $121 | $222 |
| Days on Market | 47 days | 45 days |
| Months of Supply | 3.2 | 3.5 |
| List-to-Sale Ratio | 96.6% | 98.5% |
| Monthly Homes Sold | 98 | — |
| Foreclosure Rate | 0.39% | 0.3% |
Home Value Trends in Ann Arbor
A homeowner who purchased at the median price of $351,100 five years ago in Ann Arbor would have gained approximately $63,900 in equity, representing a 18.2% return on investment. Over the past year alone, the typical homeowner gained $13,646 in home equity.
Affordability in Ann Arbor, MI
With a median household income of $65,250 and a median home price of $415,000, the price-to-income ratio in Ann Arbor is 6.4x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $2,193 compared to estimated monthly ownership costs of $2,448 gives a rent-vs-buy ratio of 1.12. In Ann Arbor, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Ann Arbor
The effective property tax rate in Michigan is 1.38%. On a home valued at $415,000, the estimated annual property tax bill is $5,727, or approximately $477/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Ann Arbor is 107.5 (100 = national average), indicating living costs are near the national average.
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Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Ann Arbor, MI?
The median home value in Ann Arbor, Michigan is $415,000 as of March 2026. Home values have changed +3.4% over the past year, with a 5-year appreciation of 18.2%.
Is Ann Arbor a buyer's or seller's market?
Ann Arbor is currently a balanced market with 3.2 months of housing supply. Homes spend an average of 47 days on market, and the list-to-sale price ratio is 96.6%. Supply and demand are relatively balanced.
Are home values going up in Ann Arbor?
Yes, home values in Ann Arbor have increased by 3.4% over the past year. The 5-year appreciation rate is 18.2%, meaning a home worth $351,100 five years ago is now worth $415,000.
Is it better to rent or buy in Ann Arbor?
The average monthly rent in Ann Arbor is $2,193, while estimated monthly homeownership costs are approximately $2,448. The price-to-rent ratio is 15.8. Based on current conditions, buying may be more cost-effective than renting in this market.
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Disclaimer: Home value data for Ann Arbor, Michigan is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.