Looking to stretch your dollars in Michigan? Let's explore some of the affordable areas in this welcoming state. Michigan, known for its Great Lakes, vibrant seasons, and deep-rooted Midwestern charm, also boasts a range of cities where your money can go further.
Affectionately known as the Mitten State, Michigan is best known for being sculptured by four of the Great Lakes. There’s more to love about Michigan than the massive freshwater lakes; the automobile industry, breweries, lighthouses, and more all give the Great Lakes State its special charm. From amazing outdoor recreation to entertainment, Michigan has something for everyone.
Whether you're a first-time homebuyer, a growing family, or someone seeking a lower cost of living without sacrificing quality of life, the Great Lakes State has affordable gems that offer both value and community. If you are ready to build, Michigan is a great place to put down roots.
In this article, we will explore the most budget-friendly cities in Michigan—places where you can find affordable housing, lower living expenses, and a high quality of life.
10 Most Affordable Cities
1. Jackson
Home Price to Income Ratio: 2.2
Average Property Tax: 0.97%
Median Household Income: $42,848
Jackson, Michigan, known as the “Rose City,” sits in the southern part of the state, about 40 miles west of Ann Arbor and roughly an hour away from Detroit. It's a city that maintains that classic Midwestern charm. Living here is considerably more affordable than in larger Michigan cities. Jackson’s cost of living is well below the national average, and housing prices reflect that. Whether you’re looking for a historic property with character or a new build on the edge of town, Jackson has a diverse home market that caters to many tastes and budgets.
Employment opportunities in Jackson have a solid foundation in manufacturing, healthcare, and education, with major employers including Allegiance Health, Consumers Energy, and Jackson College. The recent push toward revitalizing the downtown area has brought new businesses and amenities, creating a more vibrant job market and lifestyle hub. For those seeking a community with potential for both career growth and a reasonable cost of living, Jackson can be a great fit.
Jackson is famous for its parks, notably Cascades Park, where an iconic illuminated waterfall draws visitors throughout the warmer months. History enthusiasts appreciate Jackson as one of the birthplaces of the Republican Party, with the “Under the Oaks” park commemorating the founding meeting held here in 1854. Check out state military history at the Michigan Military Heritage Museum. There’s a tight-knit community feel, bolstered by events like the Hot Air Jubilee and Bright Walls mural festival, which brings vibrant street art to the downtown.
With Ann Arbor and Detroit within commuting distance, you have access to major sports, cultural events, and universities, while still enjoying Jackson’s laid-back atmosphere. The city has a range of amenities without the hustle of a major metropolis, making it an attractive option for anyone looking for a balanced lifestyle.
2. Mount Morris
Home Price to Income Ratio: 2.1
Average Property Tax: 0.39%
Median Household Income: $43,379
Mount Morris, often referred to as “The Township of Friendly People,” is a compact, affordable town in Genesee County. Mount Morris is a small township with all the essentials, including grocery stores, restaurants, parks, and places of worship. With a cost of living well below the national average, Mount Morris offers an appealingly low barrier for homeownership.
Housing options here range from established mid-century homes to some newer developments, making it a solid place to consider if you're looking for an affordable entry into the Michigan real estate market. The new home market has a steady interest in this quiet suburb, particularly from those working in nearby Flint who are drawn to its close-knit, small-town feel.
Mount Morris stands out with its mix of suburban peace and proximity to larger cities. Flint is only about 10 minutes away, offering residents quick access to more extensive shopping, dining, and employment opportunities.
People here take pride in local events and traditions, and they are fiercely loyal to their township. Parks and outdoor spaces offer a respite from city life, with Crossroads Village & Huckleberry Railroad—a historic park nearby—providing a step back in time with 19th-century buildings, steam locomotives, and seasonal events. Additionally, nearby Flint is home to cultural attractions like the Flint Institute of Arts, Sloan Museum, and Longway Planetarium, all of which are within an easy drive.
For those who appreciate a suburban environment with a touch of rural charm and prefer a location where everyone knows each other’s name, Mount Morris has affordability, ease of access to Flint, and an inviting community atmosphere making it an attractive, practical choice for anyone considering a fresh start in Michigan.
3. Battle Creek
Home Price to Income Ratio: 2.4
Average Property Tax: 1.07%
Median Household Income: $51,699
Known as “Cereal City,” Battle Creek, Michigan, has earned a place on the map thanks to its history with the breakfast food industry, anchored by Kellogg’s, which still has a major presence here. Battle Creek is in southern Michigan along the Battle Creek River and Kalamazoo River. The city is a blend of industry, affordability, and Midwestern charm.
Living costs in Battle Creek are considerably lower than in Michigan's larger cities, with a reasonable housing market that appeals to those looking for value in homeownership. Many new homebuyers find the area’s prices attractive, and the recent growth in suburban developments adds variety to the housing options. Newer builds in family-friendly neighborhoods provide space and nature often just steps away.
Outdoor enthusiasts will love the riverside parks, nature preserve, and Goguac Lake Willard Beach Pavilion. Further north, residents can enjoy farmers markets, museums, and the cultural Art Center of Battle Creek. Binder Park Zoo and the sprawling Fort Custer State Recreation Area are two perks in this area.
Leila Arboretum, a 72-acre gem, offers art installations and a children’s garden, making it a favorite for families. The city’s Festival of Lights, holiday parades, and regular downtown events bring the community together. Another bonus is the excellent schools and easy access to Western Michigan University’s nearby facilities.
Employment-wise, find opportunities across manufacturing, healthcare, and education, supported by major employers like Denso Manufacturing and Bronson Battle Creek Hospital. The Kellogg Company and Post Consumer Brands have roots here that date back to the city’s history as a health and wellness destination, making Battle Creek a place of opportunity for those interested in food production, research, and development.
The city is also near Kalamazoo and Grand Rapids, so you’re never far from big-city amenities. In Battle Creek, you get the perk of living in a place where community and history meet—where life is affordable, and where nature, industry, and community pride create a unique spot in Michigan’s landscape.
4. Burton
Home Price to Income Ratio: 2.3
Average Property Tax: 1.28%
Median Household Income: $57,767
Burton is located in Genesee County, just east of Flint. Burton combines suburban comfort with an affordable cost of living. A short drive from major Michigan cities, Burton offers lower housing costs than state and national averages, making it an appealing option for families, young professionals, and retirees. For anyone seeking to put down roots without breaking the bank, the city’s affordable new home market provides an attractive range of choices from modest single-family homes to newer developments. Overall, the cost of living in Burton is lower than many other Michigan locales, allowing residents to enjoy a good quality of life without stretching budgets thin.
Employment opportunities in Burton benefit from its proximity to Flint’s economic resources and institutions. While Flint’s automotive past is well-known, the area is now pivoting toward diversified industries, including healthcare and education, thanks to nearby institutions like the University of Michigan-Flint and Hurley Medical Center. The growing medical field, local small businesses, and nearby industrial jobs help create a stable employment scene for Burton residents.
One major point of interest is the For-Mar Nature Preserve & Arboretum, which features 383 acres of trees, trails, and a playhouse. Burton residents also enjoy activities such as skating at Crystal Fieldhouse Ice Arena, and fishing at Kelly Lake Park. Opt for a connected lifestyle, one that’s close to both outdoor experiences and urban conveniences in Burton.
5. Kalamazoo
Home Price to Income Ratio: 3.3
Average Property Tax: 0.74%
Median Household Income: $48,965
Kalamazoo, Michigan, often called “Kzoo” or “The Zoo” by locals, is a city known for its creative spirit and affordability, located right between Detroit and Chicago. The cost of living here is refreshingly low compared to other parts of the country. Housing costs are below the national average, and while the city offers a mix of historic homes, new developments are also on the rise.
From nature preserves, country clubs, music theaters, and shopping centers, you’ll never be bored in Kalamazoo. The downtown district is packed with attractions, including museums, art centers, and a state theater. The Kalamazoo River snakes through the city’s northeast side, and you’ll find parks and golf courses with a riverside view.
Kalamazoo is home to Western Michigan University and Kalamazoo College, two institutions that not only contribute to the vibrant academic and cultural scene but also fuel local employment. Major employers include the medical and pharmaceutical industries, with companies like Pfizer and Stryker headquartered here, alongside a lively craft beer industry led by Bell's Brewery, one of the most famous breweries in the Midwest.
The Kalamazoo Promise, a program that provides free college tuition for local high school graduates, is a huge draw for families and a unique part of the city’s appeal. Kalamazoo River Valley Trail offers miles of hiking and biking, and nearby lakes and parks provide ample options for recreation. For a family-friendly experience, the Air Zoo Aerospace & Science Museum is both educational and fun, with interactive exhibits and flight simulators.
From quality schools and diverse job opportunities to a welcoming demeanor, Kalamazoo offers a unique blend of opportunity and affordability that makes it an increasingly popular choice for a new home.
6. Saginaw
Home Price to Income Ratio: 1.4
Average Property Tax: 0.49%
Median Household Income: $37,298
Saginaw, Michigan, sometimes called “The Saginaw Valley,” is a city with a blend of historic character, affordability, and Michigan resilience. The city is bisected by the Saginaw River, which features many parks along its banks. For those interested in affordable living, Saginaw offers some of the best value in Michigan. The cost of living here is lower than the national average, with housing costs standing out for their affordability. Many find that their dollar stretches further in Saginaw.
In terms of employment, Saginaw has long been a center of manufacturing and healthcare, with a notable resurgence in these industries in recent years. Covenant HealthCare is one of the city’s largest employers, providing a steady base of jobs in healthcare. The local economy also benefits from the presence of Dow Chemical in nearby Midland and Hemlock Semiconductor further afield, offering career opportunities in the chemical and manufacturing sectors. Though Saginaw has faced economic challenges in the past, it has adapted, and recent developments in skilled trades and health services add to the city’s employment base.
Attractions like the Castle Museum, Saginaw Railway Museum, and the Saginaw Art Museum add depth and insight into this area’s heritage. The Dow Gardens in Midland and Saginaw Children’s Zoo are favorite spots for families, providing year-round recreational and educational experiences. There’s also a unique sense of community, with events like the Saginaw County Fair and annual Riverfront Arts Festival bringing people together in celebration.
For those moving to the area, Saginaw represents an opportunity to enjoy a more relaxed pace of life while still having access to employment, education, and a deep-rooted community spirit. Its proximity to Lake Huron and other natural attractions adds an extra appeal. Whether it's for the affordability, the job prospects, or simply the chance to live in a place with a strong sense of identity, Saginaw is a solid choice for a new home.
7. Flint
Home Price to Income Ratio: 1.3
Average Property Tax: 2.1%
Median Household Income: $36,194
Flint, Michigan—often referred to as "Vehicle City" for its automotive heritage—is a place with a reputation shaped by both resilience and reinvention. Once a powerhouse in the automobile industry, Flint has transformed over the years, grappling with economic challenges while actively working toward renewal.
The city is affordable compared to the national average, with low housing costs and a reasonable cost of living, making it attractive to both first-time homebuyers and those looking for investment opportunities in an emerging market. Housing prices here are some of the most budget-friendly in Michigan, and a range of revitalization efforts have brought new life into various neighborhoods, with more attention on restoring historic homes and redeveloping urban spaces.
Located 66 miles northwest of Detroit, Flint is the seat of Genesee County. The Flint River winds through downtown, where you can find art museums, historical landmarks complete with museums, and the University of Michigan-Flint. Enjoy a myriad of parks throughout the city, many of which feature golf courses and skate parks. Flint’s parks and nearby natural areas offer hiking, fishing, and picnicking, while Kearsley Park and Flint River Trails connect people to scenic parts of the area.
Flint is unique in its cultural assets, from the Flint Institute of Arts to the Sloan Museum of Discovery, which highlight the city’s commitment to history, science, and the arts. Downtown Flint has undergone significant revitalization, with local breweries, eateries, and art galleries drawing in residents and visitors alike. The Flint Cultural Center campus, home to theaters, planetariums, and museums, is a standout attraction.
Despite its well-known challenges, Flint has an unmistakable resilience that continues to shape its identity. This is an ideal place for those who value community, affordability, and the chance to be part of a story of renewal.
8. Muskegon
Home Price to Income Ratio: 2.6
Average Property Tax: 0.40%
Median Household Income: $46,342
Muskegon is situated on the western part of the state, bordering the shores of Lake Michigan. Interested in an idyllic beach getaway? Living in Muskegon, you won’t need to travel far to enjoy sailing and fishing. Muskegon, sometimes called “The Port City” for its bustling harbor on Lake Michigan, is a place that promises both affordability and adventure.
With a cost of living well below the national average, Muskegon attracts young families, professionals, and retirees looking to stretch their dollar without sacrificing quality of life. Housing is affordable, and though real estate prices have edged up in recent years, they’re still significantly lower than in larger Michigan cities like Grand Rapids or Ann Arbor. The new home market offers a variety of choices, from charming lakefront cottages to modern suburban developments.
Summers here are especially popular, as Muskegon draws thousands to its sandy shores, state parks, and the famed Michigan’s Adventure amusement park. Residents enjoy a unique mix of lakefront activities, festivals, and miles of bike paths along Lake Michigan. With the Muskegon Winter Sports Complex, you’ll even find one of the state’s best spots for winter sports, from luge tracks to ice skating.
You will also want to check out one of the exhibits such as Muskegon South Pierhead Lighthouse and the USS Silversides Submarine Museum. Further inland, visit the wealth of stores, parks, and restaurants that await you. For a smaller city, it boasts impressive cultural spots like the Muskegon Museum of Art and the Frauenthal Center for the Performing Arts.
With a low cost of living, strong community, and scenic lakeshore setting, Muskegon stands out as a Michigan gem for anyone considering a fresh start.
9. Bedford
Home Price to Income Ratio: 2.2
Average Property Tax: 0.41%
Median Household Income: $57,360
Bedford, Michigan, is a charter township located just northwest of Battle Creek. Featuring lakes, parks, and golf courses, Bedford is a charming town that offers an easygoing lifestyle. The North Branch Kalamazoo River meanders through the southern section of the township and makes a perfect place to fish or hike.
Positioned close to the Ohio border, Bedford sits just north of Toledo and offers a manageable commute to Detroit. This proximity to larger cities means residents can enjoy a quieter, suburban life while having job and leisure options a short drive away. Cost of living in Bedford is modest, with housing costs below the national average, making it an appealing place to put down roots without the financial strains typical of more urban locations.
The area’s affordability extends to housing, which has a robust market for new homes. Many find Bedford appealing for its mix of rural landscapes, affordable real estate, and strong community spirit. New developments cater to growing families and retirees alike, offering a variety of housing styles that are generally less costly than in neighboring Ohio or the Detroit metro area.
What makes Bedford unique is its combination of Michigan countryside and convenient amenities. The community has access to nature trails, parks, and the scenic beauty typical of southeastern Michigan. Popular nearby attractions include the Monroe County Museum and Sterling State Park, both of which provide historical and recreational outings.
Overall, Bedford appeals to those seeking an affordable, peaceful place with the option to enjoy nearby urban amenities.
10. Detroit
Home Price to Income Ratio: 1.9
Average Property Tax: 2.24%
Median Household Income: $39,575
One of the most affordable cities in Michigan is also the biggest – Detroit! Motor City has no shortage of character and things to do. Detroit, famously dubbed "The Motor City" and "Motown," is a place where past, present, and future collide in ways that make it one of the most intriguing cities in the country.
For those looking to settle here, Detroit offers a surprisingly affordable lifestyle, with housing prices and cost of living generally below the national average. The real estate market is on the rise again, with renewed interest in neighborhoods like Midtown, Corktown, and Eastern Market. Developers are pouring resources into the city, creating everything from urban lofts to family-friendly homes, making this an attractive moment to buy before prices rise further.
Employment in Detroit has seen a resurgence, especially in tech, healthcare, and the automotive sector, which has always been at the heart of Detroit’s identity. Companies like General Motors, Ford, and Stellantis still anchor the local economy, but there’s also been a recent surge in startups and innovation hubs.
Visit the Detroit Institute of Art and view the paintings by Diego Rivera, catch a concert at Campus Martius Park, or take a bike ride through the greenway, Dequindre Cut. The scenic Detroit RiverWalk, Belle Isle Park, and Campus Martius offer residents plenty of options to get outdoors. And the food scene, influenced by the city’s multicultural heritage, is an adventure all its own, with some of the best coney dogs, shawarma, and craft cocktails you’ll find anywhere.
If you’re drawn to a place that’s affordable and brimming with character and resilience, then Detroit might just be the ticket.
Cities with the Best Home Price to Income Ratio
While the list above is sorted by the lowest overall cost of living index, the following cities have the lowest home price to income ratio, meaning you can get more home for your money.
Flint
Saginaw
Detroit
Other Michigan Resources
Your Complete Guide to Moving to Ann Arbor, MI
Best Modular Homebuilders in Michigan
10 Healthiest Cities in Michigan
Best Tiny Home Builders in Michigan
Top 8 Cities in Michigan to Buy a New Home
How to Build a House in Michigan
The Top 10 Most Affordable Cities in Michigan
Your Guide to Closing Costs in Michigan in 2021
Sarah Scott
Sarah graduated from Trinity University in 2012 with a degree in International Relations and Political Science. She writes blogs on new homes, decor, communities, and more for NewHomeSource. When she's not writing, you can find her spending time with her three cats.