Why Americans Should Really Care About Rising Treasury Yields
10-year U.S. Treasury yields are at a 16-year high. Why does it matter? It could mean paying higher interest on loans.
Read more10-year U.S. Treasury yields are at a 16-year high. Why does it matter? It could mean paying higher interest on loans.
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(Last Updated – 02/2025)
If you’re looking to make a move and budget is top of mind, then you can add Michigan to your list of states to consider. When it comes to the cost of living, Michigan is the 9th cheapest state to live in. Combine affordability with the chance to enjoy all the beauty of Michigan’s many lakes, sand dunes, and waterfalls, and you’re looking at a great place to live. Let’s take a look at the best places to live in Michigan so potential movers can find the perfect spot to call home.
Budget, age, and family makeup — even whether you love water sports or like cross-country skiing — can affect how well-suited you are for a certain Michigan city. Most Michigan cities are on the smaller size (Detroit being the exception). If you like smaller-city or small-town living and don’t mind cold and snowy winters, there are many best places to live on the map for you.
To start, let’s have a look at some of the most affordable places to live in Michigan. Comparing Michigan to other possible locations for your move? Check out the cost of living across the 50 states.

Photo credit: iStock/DenisTangneyJr
If you’d like to land somewhere that isn’t quite a small town or a big city, then Jackson might be exactly what you’re looking for. With around 31,000 residents, this urban area is by no means tiny, but you won’t have to worry about the hustle and bustle of a big city. Top employers include CMS Energy Corporation and Allegiance Health. And there is plenty to do outside of work — with multiple museums and parks, you’ll never be bored. Jackson is a top spot for golf lovers, as well. Going for a smaller town can help you keep your budget nice and tight.
Population: 30,854
Median Household Income: $42,848
Cost of Living: 84% of U.S. average
Average Rent Price: $1,100
Home Price-to-Income Ratio: 4.1

Photo credit: iStock/Sean Pavone
When you want a bigger-city feel, but still like to keep things affordable, Kalamazoo enters the picture. You’ll appreciate that the rent prices here start at around $350. This area of Michigan is known for its craft beer, so you can’t miss out on brewery-hopping with the locals. The city is small but diverse, and there are plenty of outdoor recreation opportunities. You’ll also be located midway between Chicago and Ann Arbor. If you’re looking to purchase a home, to compete more effectively in the market, it may help to go through the mortgage preapproval process before your search heats up.
Population: 73,126
Median Household Income: $48,965
Cost of Living: 84% of U.S. average
Average Rent Price: $1,280
Home Price-to-Income Ratio: 4.5
💡 Quick Tip: Buying a home shouldn’t be aggravating. Online mortgage loan forms can make applying quick and simple.

Photo credit: iStock/Mark Hewer
Don’t let the idea of big city prices scare you off if you want to live in Michigan. Detroit is the biggest city on our list of the best affordable places to live in Michigan, with rental prices starting as low as $500. For a helpful point of reference: Portland, Oregon, has about the same number of residents as Detroit, but its average rent price is about 30% higher. Sure, there are areas in and around Detroit where you’re likely to need a jumbo mortgage loan, but home values in metro Detroit fall well below the national average. In the desirable (and walkable) Downtown and Midtown neighborhoods, there are condos and small homes priced below $500,000.
Population: 633,218
Median Household Income: $97,603
Cost of Living: 102% of U.S. average
Average Rent Price: $1,200
Home Price-to-Income Ratio: 1.0
Recommended: Mortgage Prequalification vs. Preapproval
Whether you already have a big brood or are just hoping to start a family one day, you may want to find a family-friendly spot to build a home and life. Here’s our take on the best places to live in Michigan for families.

Photo credit: iStock/Jacob Boomsma
Families may gravitate to Okemos due to its well-regarded public schools and solid job opportunities in government, health care, and manufacturing. The area benefits from its proximity to the state capital of East Lansing and to Michigan State University. Okemos is another example of a Michigan city that has much more affordable housing opportunities that can offer families on a budget some much-needed relief.
Population: 25,503
Median Household Income: $97,603
Cost of Living: 93% of U.S. average
Average Rent Price: $2,200
Home Price-to-Income Ratio: 3.6
Why is Huntington Woods such a great place for families? Like Okemos, it has well-regarded schools. It also offers a low-key social scene, not to mention there are a lot of opportunities for outdoor family fun. You’re also close to Detroit if you want to commute to work there but not raise kids there. There are first-time homebuyer programs in Michigan that can help make home ownership affordable, and buyers who have previously owned a home can qualify in some cases.
Population: 6,260
Median Household Income: $188,229
Cost of Living: 94% of U.S. average
Average Rent Price: $2,000
Home Price-to-Income Ratio: 2.6

Photo credit: iStock/Wirestock
If you have water babies, get ready for sun fun on the sand. Muskegon has a handful of waterfront state parks where you can enjoy days in the sun. Art museums, hiking trails, theme parks, and many other attractions make Muskegon a really cool spot to raise active and curious kids.
Population: 37,183
Median Household Income: $46,342
Cost of Living: 98% of U.S. average
Average Rent Price: $1,350
Home Price-to-Income Ratio: 3.6
Recommended: First-Time Homebuyer Guide
Looking for the best places to live in Michigan for young adults? From cities with great nightlife to ones that have ample career opportunities, we’ve helped you narrow down your search.

Photo credit: iStock/pawel.gaul
While Ann Arbor isn’t the cheapest place to live in Michigan, it is a very affordable big city. Finding a good job shouldn’t be a problem either. Education, health care, and automotive employers dominate, although the area is also home to the headquarters of Domino’s Pizza. There are also plenty of opportunities for young adults to let their hair down and have a little fun. For outdoor enthusiasts, the area offers kayaking, canoeing, and stand-up paddleboarding on the Huron River in the summer, as well as cross-country skiing, snowshoeing, and ice skating in the winter. Young creatives can explore renowned galleries, museums, and theatrical and musical organizations.
Population: 119,381
Median Household Income: $81,089
Cost of Living: 107% of U.S. average
Average Rent Price: $2,435
Home Price-to-Income Ratio: 6.1
Young adults looking to start their career off may be looking to move somewhere with a high median household income and good job opportunities. They may want to consider East Grand Rapids, which has a median household income of $168,000. If this is your first time purchasing a home, consult a home loan help center to learn more about the ins and outs of this transaction.
Population: 11,489
Median Household Income: $168,487
Cost of Living: 101% of U.S. average
Average Rent Price: $1,400
Home Price-to-Income Ratio: 3.6

Photo credit: iStock/DenisTangneyJr
Young people will appreciate all the fun things to do in Kalamazoo. From breweries to live theater and musical performances to impressive dining destinations, there’s no shortage of ways to fill your nights and weekends. The median age of the population in Kalamazoo is 29, and a quarter of the population is made up of people in their twenties, so young singles will appreciate the opportunities to meet and mingle with others in the same stage of life.
Population: 73,126
Median Household Income: $48,965
Cost of Living: 84% of U.S. average
Average Rent Price: $1,280
Home Price-to-Income Ratio: 4.5
Some of the best places to live in Michigan for retirees are the locations that have low average property taxes, affordable rent prices, and lots of fun things to do in your time off.

Photo credit: iStock/Laurent Fady
Most retirees live on a fixed income and may have a tight budget to stick to. Petoskey is an affordable spot for retirees whether they choose to rent or own. There are many opportunities to enjoy arts and culture in the area, and golf and ski resorts are plentiful. The Gaslight District boasts 90 specialty shops. And the area has several highly rated retirement communities and assisted-living facilities.
Population: 5,846
Median Household Income: $72,905
Cost of Living: 87% of U.S. average
Average Rent Price: $1,545
Home Price-to-Income Ratio: 5.8

Photo credit: iStock/DenisTangneyJr
Retirees just want to have fun, and they stand to have a lot of fun in Kalamazoo. Those looking for a slower pace can enjoy the farmer’s markets, antique shops, and museums. Seniors looking to stay active can hit the hiking and biking trails when they aren’t playing a round of golf or taking their grandkids to one of Kalamazoo’s many parks. The county has a local tax, approved by voters, that raises funds for community supports that enhance the quality of life for seniors.
Population: 73,126
Median Household Income: $48,965
Cost of Living: 84% of U.S. average
Average Rent Price: $1,280
Home Price-to-Income Ratio: 4.5

Photo credit: iStock/csterken
Retirees who dream of the charm of Europe but who also want to stay close to home can find everything they’re looking for in Holland, Michigan. The Dutch heritage of this town is still celebrated today with the preservation of unique architecture, blooming tulip fields, celebratory festivals, and of course, some impressive windmills.
Population: 34,540
Median Household Income: $72,905
Cost of Living: 91% of U.S. average
Average Rent Price: $1,696
Home Price-to-Income Ratio: 4.7
💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.
Ohio doesn’t offer access to the ocean or mountains, but it borders one of the Great Lakes and has plenty of smaller lakes and rivers to explore. These are some of the top locations in the state to live near the water.

Photo credit: iStock/Morgan Somers
Play tourist whenever you feel like it in Grand Haven. Visitors flock there to take advantage of the seven area beaches, as well as its museums, galleries, shops, and restaurants. Make your move here and you can take advantage of everything Grand Haven has to offer, which includes catching a show at the Grand Haven Musical Fountain or strolling down the boardwalk. Retirees who don’t like to drive can catch a ride on the Lakeshore Trolley each summer. And with miles of Lake Michigan beaches, the soft sand and beautiful sunsets make summers in Grand Haven especially inviting.
Population: 11,002
Median Household Income: $60,665
Cost of Living: 93% of U.S. average
Average Rent Price: $1,500
Home Price-to-Income Ratio: 6.0

Photo credit: iStock/RiverNorthPhotography
Morning strolls by the waterfront Bayfront Park sound like the perfect start to any day. From beach days to water sports, in Petoskey, there’s no shortage of ways to take advantage of being so close to the water.
Population: 5,846
Median Household Income: $72,905
Cost of Living: 87% of U.S. average
Average Rent Price: $1,545
Home Price-to-Income Ratio: 5.8

Photo credit: iStock/CT757fan
Traverse City is one of the pricier beachside towns we looked at but for good reasons. Families looking for an outdoorsy home will also appreciate that the area has a well-ranked public school system even as it also offers reasonable property taxes and all the waterfront amenities you could ask for. Residents here can make the most of weekends by indulging in wine tours, sailboat cruises, and hiking. When wine country combines with beaches, you know you’re in for a good time.
Population: 15,707
Median Household Income: $71,731
Cost of Living: 94% of U.S. average
Average Rent Price: $1,800
Home Price-to-Income Ratio: 5.9
It’s easy to see that if you want to make Michigan your home, you’ll have no trouble finding the perfect spot no matter what phase of life you currently find yourself in. Take some time to consider whether proximity to a lake is important (there are lots in Michigan!) or whether you want to be in a larger or smaller city.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
There are a lot of affordable places to live in Michigan. One of the most affordable is Petoskey, which has an average rent price of just $1,545 and an average home value around $425,000.
While there are plenty of nice places to live in Michigan, it would be hard not to call out the towns of Holland and Traverse City, which offer waterfront access and unparalleled opportunities to enjoy Michigan’s natural beauty.
Michigan is a fairly affordable state to live in, ranking among the top 10 least expensive states to live in overall. Housing costs tend to fall significantly below national averages here, and housing is a big chunk of most household budgets, making the Great Lakes State an affordable place to live.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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