.png)
What’s Really Happening in the Ann Arbor Real Estate Market?
- Amelia Stevenson Howard
- 3 days ago
- 3 min read
Ann Arbor has always had a real estate market that feels a little… different. Thanks to the University of Michigan, a strong economy, and a steady stream of incoming faculty, professionals, and students, demand for homes in A2 tends to hold firm — even when other markets slow down.
But in 2025, the local market is going through some shifts. Interest rates, inventory, and ongoing construction across the city are reshaping how people buy and sell. Whether you’re thinking about listing your home, buying your first place, or just like to keep tabs on the local buzz, here’s what’s going on in the Ann Arbor housing market — and what it might mean for you.
📊 Inventory Is Still Tight — But Shifting
Ann Arbor has been in a low-inventory market for years, meaning there are more buyers than available homes. That’s still true in many neighborhoods (especially close to downtown, the Old West Side, and areas with top-rated schools), but there’s a slight uptick in listings this season.
Sellers are testing the waters, especially those who bought before interest rates went up and now want to cash in on equity.
Buyers are still active, but more cautious — looking for value, space, and walkability.
Condos and townhomes near campus are seeing steady demand from investors and parents of U-M students.
💡 Hot take: Homes that are move-in ready, well-staged, and priced right are still getting strong offers. Homes needing major updates? Sitting longer than before.
💰 Prices Are Holding — But Not Skyrocketing
After a few years of steep price jumps, Ann Arbor home prices are stabilizing. That doesn’t mean they’re dropping — it just means the frenzy has cooled slightly, and sellers can’t expect $100K over asking on day one anymore.
Median sale price is still among the highest in Michigan.
Price per square foot is strongest near downtown, Kerrytown, and Burns Park.
North and west side neighborhoods are seeing more balanced activity — good news for first-time buyers.
In short: It’s still a seller’s market — just not an anything-goes market.
🏗️ Construction Is Changing the Landscape
If you’ve driven through South U, Main Street, or Packard lately, you’ve seen the cranes. New residential buildings, mixed-use developments, and infrastructure upgrades are everywhere.
This means:
More housing options — but mostly rentals or luxury units
Ongoing noise and traffic near construction zones
Increased long-term appeal in neighborhoods gaining walkability and retail
For homeowners, nearby development can increase future property values — but it might make showings trickier if you're selling mid-construction.
🏡 What Buyers Want in 2025
Buyers in Ann Arbor have shifted their priorities slightly post-pandemic:
Flexible space for working from home or hobbies
Energy efficiency and updated systems (newer roof, furnace, AC)
Walkability to parks, trails, and downtown
Low-maintenance yards and native landscaping
And yes — parking still matters. Especially in older neighborhoods with tight streets.
📅 Timing Your Move
Traditionally, spring and early summer are the hottest times to list in Ann Arbor. That’s still true in 2025, but buyers are moving more slowly and cautiously due to rates and higher cost of living.
If you're a seller: 📦 Prep your home well — clean, declutter, and price strategically.
If you're a buyer: 🔍 Be ready to act fast, but don't be afraid to negotiate or walk away if it’s not quite right.
Ann Arbor’s real estate market in 2025 is evolving — still competitive, still in demand, but with a touch more balance and realism. Whether you’re buying, selling, or just watching from the sidelines, the biggest wins go to those who understand the local trends and make smart, timely moves.