Ann Arbor’s Housing Problem
Housing prices in Ann Arbor continue to rise, both for rent and for purchase. The private market is no longer building middle-income and “starter” homes while more and more luxury apartments inflate rental costs for students, graduates, and workers.
Rising Home Ownership Costs
Single-family home prices in Ann Arbor continue to rise, pricing middle-income earners out of the market. Since September 2019, the median sale price has risen by 37.2% while the available supply of affordable homes continues to fall.
$502k
September 2023 median home price
$415k
September 2021 median home price
$365k
September 2019 median home price
29.6%
Decrease in home sales year-over-year
77%
Of renters are priced out of ownership
https://www.mlive.com/news/ann-arbor/2023/05/average-ann-arbor-home-price-over-683000-in-april-new-report-shows.html
The Problem Extends to Rentals
Rental prices in Ann Arbor continue to skyrocket, making it difficult for students, graduates, and university workers alike to find housing they can afford. Renters out number home owners in Ann Arbor 54% to 46%, and many of those are students with even tighter housing budgets.
The average rent in Ann Arbor is $1,940 per month, compared to $1,528 in East Lansing, $1,212 in Detroit, and $1,437 in Grand Rapids.
Ann Arbor Apartment Rent Ranges
Students
The recent increase in housing prices has made it very unaffordable for students to find off-campus housing. A 20% YoY increase has furthered worsened the problem, which is exacerbated by a lack of on-campus options offered by the university. High-rise offerings can reach $2,500 for a studio. Consequentially, the Ann Arbor student housing market ranks among the most expensive in the Midwest.
The University recently broke ground on a new residence hall located on Elbel Field that will house over 2,300 undergraduate students with plans for expansion. As enrollment continues to rise, the new residence hall alone will not solve the student housing issue in Ann Arbor.
University & City Employees
As the University student population continues to grow, so does its workforce. Michigan Medicine alone is projected to add 1,600 new jobs with the opening of a new 12-story hospital in 2025.
Many university and city employees are middle-income earners that have been priced out of living in Ann Arbor, even if they want to. This includes essential workers such as police officers, teachers, nurses, and more. If these people are essential to our community, shouldn’t they be able to live in Ann Arbor?