Ann Arbor, Michigan Housing Market

What stands out in Ann Arbor?

• Asking price per square foot has moved -1.3% a year over five years: among the weakest five-year price growth of 763 tracked cities. Appreciation has been weak, so buy for cash flow.
• Prices were above the year before in 58% of months: among the least consistent price growth of 763 tracked cities. Price growth here is unreliable. Do not count on it.

How far have Ann Arbor prices fallen?

Asking price per square foot in Ann Arbor is 16.8% below its Apr 2022 high and down 4.0% over the last year. Prices were above the year before in 58% of months since the data starts, so drops here have not always reversed quickly. 21% of sellers have cut their price. Underwrite with no price growth for now and let the seller carry the next cut.

Is now a good time to buy in Ann Arbor?

The median asking price is 31.6% below its Jan 2024 peak. Per square foot the gap is smaller: 16.8% below the Apr 2022 high. Part of the drop is smaller homes coming to market. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. Ann Arbor prices rose in only 65 of the last 112 months. This market goes up and down. Timing matters here. Growth will not rescue a bad price.

This market is turning. Which way is not settled yet. Check the monthly numbers above before you commit.

How does Ann Arbor compare with other Michigan markets?

Ranked among the 24 Michigan markets we track:

• Asking price: the priciest of 24. Ann Arbor is at $472,659. Closest: Troy.
• Buyer competition: 2nd least competitive of 9. Ann Arbor is at 0.34 buyers per home. Closest: Warren and Flint.
• Time on market: 3rd longest time on market of 24. Ann Arbor is at a median of 57 days on market. Closest: Saginaw and Flint.
• Price cuts: 8th fewest price cuts of 24. Ann Arbor is at 21% of sellers cutting. Closest: Warren and Detroit.

Who will rent from you in Ann Arbor?

In Ann Arbor, 47 out of every 100 households rent. That is nearly half. That share has held steady for five years. Ann Arbor added about 1,800 renter households in five years. Renter households average 2.1 people. Singles and couples rent here. Two bedrooms beat four.

Households grew 7% in five years. The housing stock grew 7%. The two are moving in step. 6.5% of homes sit empty. That is normal for a healthy market.

The median Ann Arbor household earns $93,414 a year. Incomes here have grown 3.9% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 5.1 times the median income. That is the national middle. Neither cash flow nor appreciation is free here. At 30% of income, a tenant on the median income can pay about $2,335 a month.

To see what one Ann Arbor address would rent for and cash flow, run it through the app.

How much can you negotiate in Ann Arbor?

For every 100 homes still for sale, 34 are under contract. In 2017–2019 at this time of year it was 47. The rest are still waiting for a buyer. About 1 in 5 sellers has already dropped their price. Each one has learned their first price was too high. Start your offer below their new price.

Ann Arbor listings spend a median 57 days on the market. That is 16% longer than a year ago. There are 456 homes for sale in Ann Arbor. That is 3.6 times the tightest month on record, but below the peak of 525. Supply is growing against last year.

What to do about it

• Judge each listing on its own.
• Homes listed 60+ days ago with a price cut are where your discount is.
• Fresh, well-priced homes will not move on price. Do not waste offers on them.

What numbers should you underwrite an Ann Arbor deal with?

• Price growth to assume — -1.3%/yr. Ann Arbor grew 2.8% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Ann Arbor loses about 1.3% a year. That is the number to type in. Prices fell 4.0% over the last year. Use it for timing. The five-year rate is the better guide.
• Comp on price per square foot — $275/sqft. The typical Ann Arbor listing shrank from 2,173 to 1,789 sqft since Jul 2016. So median price hides real growth: 29% per sqft versus 4% on the median. Comp on median price and you will overpay for small homes.
• Competition when you exit — +35%. Homes for sale in Ann Arbor are up 35% on last year, so your resale faces more competition than today's comps did.

Read how price cuts signal a market turning and how we read these numbers, then run the numbers on a deal.

What is the median home price in Ann Arbor?

The median asking price in Ann Arbor is about $473,000 as of Oct 2026, down 7.9% from a year ago. This is the asking price on homes listed for sale. Sites that report sold prices or estimated home values will show a different number. Our Ann Arbor figures cover the 8 ZIP codes with an Ann Arbor mailing address, which can reach past city limits.

Is Ann Arbor a buyer's or seller's market in 2026?

Neither side has the upper hand in Ann Arbor right now. We compare Ann Arbor with 2017–2019 at this time of year: there are 34 pending sales per 100 listings, against 47 then; 21% of sellers have cut their price, against 18% then; there are 8% more homes for sale.

Are Ann Arbor home prices going up or down?

The median asking price is 31.6% below its Jan 2024 peak. Per square foot the gap is smaller: 16.8% below the Apr 2022 high. Part of the drop is smaller homes coming to market. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What is the best month to buy a house in Ann Arbor?

Across 9 full years, Ann Arbor asking prices ran lowest in November, about 3.7% below the year's average. They peaked in May. The most homes for sale show up in August, about 22% above the yearly average.

What price growth should I assume for Ann Arbor?

Assume -1.3% a year. Ann Arbor grew 2.8% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Ann Arbor loses about 1.3% a year. That is the number to type in. Prices fell 4.0% over the last year. Use it for timing. The five-year rate is the better guide.

What is the fair market rent in Ann Arbor?

HUD's fiscal year 2026 fair market rent for Washtenaw County is $1,656 a month for 2 bedrooms and $1,986 for 3 bedrooms. The figures include tenant-paid utilities and cover the whole county.