How Construction in Ann Arbor Is Shifting the Real Estate Market

Amelia Stevenson Howard
May 25
3 min read

If you’ve driven down South U, Packard, or Main Street lately, you’ve probably noticed it: Ann Arbor is building — a lot. From shiny new apartment towers to infrastructure upgrades and reimagined intersections, the city is undergoing one of its most visible transformation periods in recent memory.

But all this construction isn’t just changing the skyline — it’s also reshaping the real estate market. Whether you're buying, selling, or just living here, it’s worth paying attention to how development is shifting the way homes are valued, marketed, and experienced.

Let’s take a closer look at what’s going on — and how it could impact you.

🏗️ What Kind of Construction Are We Seeing?

Here’s a quick breakdown of what’s in the works across Ann Arbor:

Multi-story residential buildings downtown and near campus (mostly rentals or condos)
Mixed-use developments with retail, dining, and living space
Major infrastructure projects, including road repaving, bike lane expansions, and underground utility upgrades
Neighborhood infill construction, where older homes are being replaced or added onto

This level of growth is more than cosmetic — it’s a signal of how Ann Arbor is preparing for future demand and population shifts.

🏡 For Sellers: Opportunity with a Side of Challenge

If you’re thinking about selling your home, construction can affect your experience in a few key ways:

✅ Increased Future Value

New buildings and infrastructure often signal a long-term rise in neighborhood desirability — which can help bump up your property’s value over time.

🚫 Short-Term Disruption

However, if you’re listing your home while jackhammers are active down the street, it can be a tough first impression. Noise, dust, limited parking, and blocked roads can be a turn-off for buyers.

💡 Pro Tip:

Work with your real estate agent to frame the construction positively in your listing — highlight walkability improvements, future retail amenities, or the coming energy upgrades.

🔍 For Buyers: More Inventory, but New Tradeoffs

Construction may seem like it would flood the market with more options, but here’s the catch:

🏙️ Most new builds are rentals or high-end condos

The vast majority of new construction in Ann Arbor caters to students, professionals, or retirees, often in the form of small condos or apartments with luxury finishes and high prices.

🚗 Parking and traffic patterns are changing

More development means more people and vehicles — which can affect how buyers assess the livability of certain areas, especially around downtown or campus.

💬 Buyer mindset is shifting

Buyers are becoming more attuned to noise, walkability, access to public transit, and energy-efficient upgrades — all things affected by or highlighted through new development.

🏘️ Neighborhoods Most Affected

Here are a few areas where construction is especially visible — and where market behavior is starting to shift:

South University & the U-M Core: High-rise rentals and retail reshaping student housing and investment property interest.
Kerrytown & Downtown: Mixed-use construction is making these already-hot areas even more walkable and expensive.
Lower Burns Park & Packard Corridor: Infrastructure work is increasing livability but slowing showings temporarily.
North Main & Miller Areas: Infill projects are turning old lots into modern homes — raising comps and interest.

🚀 The Big Picture: Growth = Change

Ann Arbor isn’t just reacting to current housing demand — it’s actively planning for growth. The city’s goal is to support walkable neighborhoods, create more housing options, and keep pace with a rising population.

And while the short-term impact may include noise and slower commutes, the long-term effect is clear: rising home values, more diverse housing stock, and stronger neighborhood identity.

Final Thoughts

Construction in Ann Arbor is more than a seasonal inconvenience — it’s a sign of transformation. Whether you’re selling a century-old home in Burns Park or buying your first condo near Kerrytown, the cranes and concrete are shaping how we live, move, and invest in this city.

And if you’re wondering how these changes affect your specific block? That’s where local insight — and the right real estate team — really matters.