Michigan, known for its stunning lakeshores and vibrant communities, has a range of ZIP codes where home values soar. From the quaint lakeside towns to up-and-coming areas, the housing market in Michigan reflects a growing disparity in wealth, especially in areas surrounding the Great Lakes.
In this article, we reveal the most expensive ZIP codes in Michigan as of 2024, based on Zillow’s home value index, giving you a snapshot of the state’s housing trends.
Introduction: What Drives Home Prices in Michigan?
Michigan’s housing market has witnessed significant shifts, with lakefront properties becoming increasingly sought after, pushing home prices to new heights. For potential homeowners or real estate investors, understanding where the most expensive properties lie can help navigate opportunities and challenges in the state’s diverse housing market.
Background: The Role of Lake Michigan and Surrounding Areas
Many of Michigan’s most expensive ZIP codes are clustered along its scenic lakeshores, particularly around Lake Michigan. These areas are known for their luxurious lakeside homes, which significantly contribute to the high median home values.
The state’s home values have been rising due to increasing demand for these desirable locations, combined with limited supply.
Let’s take a look at the specific ZIP codes that have made the list in 2024.
The Top 5 Most Expensive ZIP Codes in Michigan
1. 49654 – North and South Manitou Islands, Leland
- Median Home Value (Sept 2024): $1.237 million
- Median Household Income: $99,167
- 5-Year Growth: +76.4% This ZIP code tops the list due to its breathtaking lakeside properties, with the median home value increasing by 3.8% from August to September 2024. Homebuyers here enjoy exquisite homes along the shores of northern Lake Michigan. The area’s economic profile includes a solid household income, with 22.5% of households earning between $150,000 and $200,000. Key Insight: Waterfront properties drive high home values, with a 5-year growth of 76.4%, reflecting both the area’s desirability and rising demand.
2. 49674 – Grand Traverse Bay
- Median Home Value (Sept 2024): $943,733
- Median Household Income: $115,536
- 5-Year Growth: +38% Known for its elegant lakeside homes, ZIP code 49674 features strong income levels, with the median household income above $115,000. The area has seen a 38% rise in median home values from September 2019 to September 2024. Key Insight: This area represents a blend of high demand and steady growth, making it a prime spot for high-value homes.
3. 49116 – Southern Lake Michigan
- Median Home Value (Sept 2024): $941,168
- Average Household Income: $179,832 Located near the Indiana border, 49116 stands out with a high average household income of nearly $180,000. Despite having some income disparities, the area has consistently ranked among the most expensive ZIP codes, thanks to its proximity to the lake and luxury homes. Key Insight: This ZIP code shows that high household incomes and attractive waterfront locations contribute significantly to escalating home values.
4. 49648 – Torch Lake, Eastport, Kewadin
- Median Home Value (Sept 2024): $801,431
- 5-Year Growth: +92% Incomes in this region are slightly lower than others, yet the real estate market here is rapidly growing. With a staggering 92% increase in median home values over five years, this area is emerging as a top contender for high-value properties. Key Insight: With property values nearly doubling over five years, 49648 is becoming a hotspot for both investors and luxury home buyers.
5. 49796 – Walloon Lake
- Median Home Value (Sept 2024): $766,741
- Average Household Income: $141,607 This ZIP code, centered around Walloon Lake, is another lakeside community that has seen substantial home value growth. The area’s median home value grew by over 60% in the last five years, reflecting the increasing demand for upscale lakefront properties. Key Insight: High-income households and a stunning location near Walloon Lake make this area one of the state’s priciest real estate markets.
Key Takeaways: Michigan’s Expensive Housing Landscape
The most expensive ZIP codes in Michigan share common traits:
- Waterfront Locations: Nearly all of the top ZIP codes are located along lakeshores, especially Lake Michigan and its surrounding bodies of water.
- Strong Home Value Growth: Many of these areas have seen substantial increases in home values over the past few years, with some markets experiencing growth of more than 70%.
- High Incomes: While there is income inequality within these ZIP codes, many areas report high median and average household incomes, contributing to the overall appeal of these upscale markets.
Conclusion: What Does This Mean for You?
If you’re considering a move to Michigan or looking to invest in real estate, these high-value ZIP codes offer some of the best opportunities in the state. With waterfront views and increasing demand, these areas are likely to continue appreciating in value.
Keep in mind that while these locations can be expensive, they also offer a quality of life that’s hard to beat, especially for those who value scenic beauty and an affluent lifestyle.
As you reflect on the data, think about what fits your needs—whether it’s investing in a luxury property, exploring new opportunities in markets like 49648, or simply understanding the dynamics of Michigan’s housing market.
Stay informed, and use this knowledge to make smarter real estate decisions.
