10 Cheapest Places to Live in Michigan [2025]

Good morning, Dwellers! Welcome to another edition of Dwellings Digest, a realtor and investor driven newsletter simplifying real estate, exploring the economy-stock-real estate link, adding a fun twist with niche topics and more. Enjoy!

In today’s edition - Darden Restaurants is set to add 60–65 new locations with a $725M investment, signaling growth despite economic uncertainties. U.S. existing home sales rose 4.2% in February, with median prices reaching $398K for the 20th straight month of gains. The Boston Celtics sold for a record $6.1B, possibly paving the way for a new arena. Meanwhile, home flipping declined 7.7% in 2024, though margins improved in key metros. "Affordability remains a challenge, but growing inventory offers new opportunities for buyers," says a Redfin economist. Stay updated on the latest real estate trends and market shifts.

If you missed yesterday’s newsletter, click here

Mortgage & Stocks

New? Join our newsletter – no cost!

🏛️ Economic & Market Sentiment

Darden Expands, Housing Market Gains, Celtics Sold for Record $6.1B, and Jobless Claims Rise

• Darden Restaurants plans major expansion, adding 60–65 new locations and investing up to $725 million in new developments and upgrades, despite economic concerns. (Source: Earnings Call)

• U.S. existing home sales rose 4.2% in February, though still 1.2% below last year. Median prices hit $398,000, marking 20 consecutive months of increases. (Source: National Association of Realtors)

• Boston Celtics sold for a record $6.1 billion, with private equity firm Sixth Street and Bruce Beal Jr. leading the deal, potentially sparking plans for a new arena. (Source: Multiple news sources)

🎢 Impact on Real Estate

U.S. Home Flipping Declines 7.7% in 2024, But Margins Improve in Key Metros

• Home flipping activity dropped 7.7% in 2024, with 297,885 homes flipped, down from 322,782 in 2023 and 441,000 in 2022.

• Flips made up 7.6% of total home sales, down from 8.1% in 2023.

• Gross profits rose to $72,000 per flip, up from $67,846 in 2023, with a 29.6% ROI before expenses—still well below the 54.2% peak in 2016.

• Top metro areas with the biggest ROI increases:

  • Cleveland, OH: 39.2% → 72%

  • Buffalo, NY: 83.9% → 109.1%

  • Rochester, NY: 60.2% → 71.5%

  • St. Louis, MO: 34% → 45.1%

  • Memphis, TN: 58.2% → 66.7%

🎙️ RE Spotlight

New Home Sales Rise 1.8% in February as Lower Mortgage Rates Boost Demand

• New home sales climbed 1.8% in February, reaching a seasonally adjusted annual rate of 676,000 units, as lower mortgage rates provided a slight boost to demand.

• The median new home price dipped 1.5% to $414,500, driven by increased sales in the $300K-$400K price range, improving affordability for buyers.

• Inventory of completed, move-in-ready homes surged 35% year-over-year, hitting 119,000 units, the highest level since 2009, as builders work to meet demand.

Nearly 60% of U.S. Households Unable to Afford a $300K Home

• 57% of U.S. households (76.4M) cannot afford a $300K home, according to NAHB’s 2025 affordability analysis, as home prices and mortgage rates remain high.

• The median new home price sits at $459,826, putting homeownership out of reach for 75% of U.S. households, based on a 6.5% mortgage rate.

• NAHB's 10-point plan aims to tackle the affordability crisis, advocating for policy changes at local, state, and federal levels to boost housing supply.

🏰 RE State Zone

DC’s Apartment Market Defies Trends: Steady Supply & Surging Demand Drive 3.2% Rent Growth

• DC’s apartment occupancy hit 96% in February 2025, up 140 basis points YoY, surpassing the national average by 100 bps, thanks to steady supply and surging demand.

• Effective asking rents jumped 3.2% YoY, ranking among the top 10 increases nationwide—well above the 0.8% national average, with Class A properties leading at 4.5% growth.

• DC absorbed 21,900 units in 2024, outpacing new supply by 7,700 units, securing its position as the nation’s strongest demand market despite evolving employment trends.

Top 10 Budget-Friendly Places to Live in 2025

• Detroit offers urban affordability, with a median rent of just $762 for a one-bedroom apartment, significantly lower than the national average, making it an attractive option for young professionals and families.

• Flint ranks as Michigan’s cheapest city, with a cost of living 14.9% below the U.S. average, allowing residents to stretch their budget while benefiting from ongoing revitalization efforts.

• Midland balances affordability with high income potential, boasting a median household income of $74,906, strong job opportunities, and a thriving arts and nature scene.

🏕️ Niche-RE

U.S. Office Market Stabilizing: Key Cities Show Signs of Rebound Amid Leasing Uptick

• New York City leads office market rebound, with leasing volume surging 16% year-over-year in 2024, totaling over 27 million square feet. Vacancy rates have stabilized at 13.5%, down from a peak of 14%, driven by financial and legal firms competing for top-tier space. (Source: CoStar News)

• San Francisco sees AI-driven office demand, with AI firms leasing 2.4 million square feet in 2024 and searching for another 1.4 million square feet. Vacancy remains high at 23.5%, but recent high-profile investments—like the $1B Transamerica Pyramid redevelopment—suggest confidence in a turnaround. (Source: CBRE Tech Insights Center)

• Miami maintains lowest vacancy rate among major markets, holding at 8.6%, as firms like JPMorgan Chase, Apple, and Amazon expand regional footprints. Office values remain above 2019 levels, defying broader national trends. (Source: CBRE)

🖼️ Chart-Tastic

🌍 Dwelling of the Day

And…that's a wrap on this edition!

Got questions or feedback? write to us [email protected] - we'd love to hear from you.