Renting in Michigan

Written by Aislinn Teachout

Renting can be a great step towards becoming a homeowner. It can teach you how to manage bills and give you some breathing room to save money for a down payment – renting can also give you the opportunity to live in an area before committing to purchasing a home there. However, depending on where you want to live, rent prices can vary widely. In Michigan, some argue there is a vast culture difference between the West and East sides of the state and usually a significant living cost variance as well.

East or West side isn’t the only variable that affects rent prices in Michigan. Suburban and urban areas throughout the state will likely be more expensive than rural towns, and rent prices generally increase as you get closer to city centers regardless of which part of the state you are in.

Urban

Grand Rapids – Although Grand Rapids has been rated one of the more affordable metro areas to live, rent prices still aren’t cheap. The average 2-bedroom apartment costs $1,135 per month, and if you want to live in one of Grand Rapids more trendy neighborhoods like East Town or Heritage Hill, expect to pay between $1,400 and $1,600 a month.

Detroit – Michigan’s largest city has seen major revitalization in the last decade after years of disinvestment and out-migration, and rent prices are still more affordable than many metro areas in the country. The average 2-bedroom apartment will run you about $1,375 and rent in a trendy neighborhood like Detroit Central will run you about $1,640, on average.

Ann Arbor – Renown for its walkability, vibrant culture, and amazing restaurants and amenities, Ann Arbor has something for everyone. Consistently rated one of the best cities to live in the US, living in the city comes at a cost. For a 2-bedroom apartment, the average rent cost is around $1,600.

Suburban

Metro Grand Rapids – Metro Grand Rapids is sprawling with many different neighborhoods and communities. The best part about any of the surrounding cities they are only a quick and easy drive away from downtown Grand Rapids where you can enjoy all that the city has to offer. The median two-bedroom rent in Ada is $1,388 whereas Hudsonville and Grandville will run you about $1,000 a month, on average for the same 2-bedroom.

Metro Detroit – It is no secret that Metro Detroit is a world of its own with over 1,337 square miles and a population almost 4 million. There are ample neighborhoods, suburbs, and towns to choose from all with different vibes. Farmington Hills’ average 2-bedroom rent is $1,345, and in Livonia and Saint Claire Shores the average is around $1,000 a month.

Ann Arbor Suburbs – Ypsilanti is the nearest suburb to Ann Arbor, and with only a 20-minute drive you can be back in the center of it all. The average 2-bedroom rental costs around $1,000 per month in Ypsilanti.

Rural

Travel outside of Michigan urban centers, and you are likely to run into miles and miles of farmland. Agriculture is one of Michigan’s top industries, so there is so shortage of rural towns throughout the state. In some of these more rural areas, rent and land is typically much cheaper, but it can come at the prices of fewer amenities. Rural areas surrounding Grand Rapids such as Coopersville or Belding and areas just outside of the Detroit Metropolitan such as Romeo or Lexington will run you between $550-$775 on average for a two-bedroom rental.

With more work from home flexibility, fewer people are choosing where to live based on their job, allowing you to search for living outside of expensive city centers. Not having to worry about a lengthy commute can give you the freedom to choose where to live which can often come with a savings in rent and living costs. Although renting does have it perks, the biggest downfall of renting is the inability to build wealth. Homeownership is one of the best ways to build wealth and earn equity, and if you’re considering purchasing a home, now may be the right time. With historically low mortgage rates and new mortgage programs for all buyer types, there are so many opportunities to become a homeowner!

Questions about a mortgage or buying a home? Reach out to one of our loan officer’s today!

References:

Renting can be a great step in becoming a homeowner!

Down payment requirements, closing costs, and loan amounts are for illustrative purposes only; subject to credit qualification, not all applicants may qualify. Not a commitment to lend. Not affiliated with or endorsed by any government institution. Please contact us for an exact quote and for more information on fees and terms.

Treadstone Funding propelled by Neighborhood Loans NMLS 222982 “Illinois Residential Mortgage Licensee No. MB.6759826. neighborhoodloans.com/licensing/  For licensing information, go to www.nmlsconsumeraccess.org