Ann Arbor’s Housing Problem
Housing prices in Ann Arbor continue to rise while new middle-income and “starter” homes are not being built to accommodate the growing need.
Instead, Ann Arbor continues to build “luxury” apartment buildings for students, graduates, and workers. As the University of Michigan continues to grow, housing availability and affordability are reaching unattainable levels. The University alone has added over 21,000 staff members in the last two decades.
Rising Home Ownership Costs
Single-family home prices in Ann Arbor continue to rise, pricing middle-income earners out of the market. Since November 2019, the median sale price of a single-family home in Ann Arbor has risen by 34.3%.
$544k
November 2025 median home price
$480k
November 2022 median home price
$405k
November 2019 median home price
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 $2,003 per month, compared to $1,212 in Ypsilanti, $1,752 in East Lansing, $1,303 in Detroit, and $1,555 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 the new D. Dan and Betty Kahn Health Care Pavilion, a 12-story, 690,000 square foot hospital on East Ann Street.
The University alone has added over 21,000 staff members over the last two decades. 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. This group is unable to purchase a home in Ann Arbor and many cannot afford to rent. If these people are essential to our community, shouldn’t they be able to live in Ann Arbor?