Property Taxes – The Budget Breaker Nobody Explains

Let’s start with property taxes.

Michigan’s effective property tax rate is often cited between 1.15% and 1.35%, depending on the source and methodology, which places it above the national average (Tax Foundation, SmartAsset, Michigan Department of Treasury).

That means a $300,000 home could carry anywhere from $4,000 to $5,000+ per year in property taxes — and depending on the city, township, village, and school district, it can be thousands more.

Now here’s the part people really miss: uncapping.

Michigan’s property tax system allows the taxable value to reset after a sale, usually the year following the purchase. The taxes you see online are often based on the seller’s capped taxable value — not yours (Michigan Department of Treasury, Proposal A of 1994).

I’ve had buyers fall in love with homes where the payment worked perfectly on paper — until we ran post-purchase taxes. Suddenly, the numbers didn’t work anymore. They were disappointed, but relieved they knew before closing.

This is why I harp on taxes so much. In Michigan, they can make or break your budget.

Auto Insurance – Michigan Plays by Its Own Rules

Michigan is a no-fault auto insurance state, meaning your own policy plays a large role in covering certain medical costs regardless of fault (Michigan Department of Insurance and Financial Services).

That system comes at a price.

Average auto insurance costs in Michigan are frequently cited around 20% higher than the national average, depending on coverage and location (Insurance Information Institute, Bankrate).

In Detroit specifically, it’s not uncommon to see hundreds of dollars per month just to keep a vehicle insured (Bankrate, Michigan DIFS reports).

So yes — the house might be cheaper than California. But your car insurance may introduce itself very aggressively.

Housing Stock – Affordable, But Often Old

Michigan homes are generally cheaper than the national average — but many are 50 to 100 years old, especially in Southeast Michigan.

That means charm… and also:

• drafty windows
• older plumbing
• aging sewer lines
• outdated electrical systems
• basements that love water

Basements are extremely common here, which means sump pumps, drain tiles, and sewer inspections matter. That’s why I always push sewer scopes during inspections — a few hundred dollars can save you $10,000 (U.S. Census Bureau housing data, HUD housing stock reports).

Weather – Four Seasons With a Disclaimer

Realtors love to say “four beautiful seasons,” and honestly — that part is true. Michigan summers and fall are elite.

But here’s the translation: one hot summer, a postcard fall, a decent spring… and five months of winter that will test your patience.

Detroit averages about 70–75 fully sunny days per year, with many additional cloudy or partly cloudy days (NOAA climate data, WeatherSpark).

Seasonal mood challenges are common in northern states. Michigan health experts note that a meaningful portion of residents experience some level of seasonal impact during winter months (Michigan State University Extension, National Institute of Mental Health).

Snowfall varies wildly:

• Southeast Michigan: roughly 3 feet annually
• Northern Michigan: 80+ inches
• Upper Peninsula: well over 200 inches in some areas

If you move here, you need a winter strategy — hobbies, routines, light, movement — not just a warm coat.

Slower Pace – A Pro or a Con Depending on You

Michigan isn’t New York or California. It’s slower. People are more laid back. Commutes are shorter. Life feels less frantic.

Some research suggests slower-paced environments create fewer daily stress triggers — fewer emotional landmines, less constant overstimulation, more space to breathe and think (psychology and behavioral health research summaries).

For me, slower is better for what’s between the ears. But if you thrive on speed, hustle, and constant stimulation, Michigan can feel… quiet.

Bugs, Allergies, and Ice-Cold Lakes

Let’s talk about the unglamorous stuff:

• Mosquitoes — thick enough to deserve their own ZIP code
• Ticks — yes, even in Metro Detroit
• Allergies — ragweed and pollen that turn antihistamines into daily vitamins

And the lakes? Gorgeous. World-class. Also cold. Even in July, Lake Michigan and Lake Superior can feel like a polar plunge (NOAA water temperature data).

Beautiful — but not exactly bathwater.

Income Reality – The Math Matters

Michigan’s median household income is roughly $69,000, below the national average of around $80,000 (U.S. Census Bureau).

That means higher taxes and insurance hit harder here. Schools also vary widely — there are excellent districts and others that struggle, and that directly impacts resale value and long-term equity (U.S. Department of Education, Niche).

Cheap homes usually exist for a reason. The key is understanding why.

Roads, Transit, and Infrastructure

Michigan’s freeze-thaw cycle destroys pavement. Infrastructure grades have historically ranked below average nationally, though improvements are underway (American Society of Civil Engineers, Michigan Department of Transportation).

Public transit outside a few core areas is limited. Metro Detroit remains one of the largest metros without a cohesive regional transit system.

If you don’t drive, Michigan can be challenging.

Water, Wells, Radon, and the Stuff Nobody Mentions

Many Michigan homes use private wells. The state recommends regular testing because contaminants like arsenic and iron can occur naturally in groundwater (Michigan Department of Environment, Great Lakes, and Energy).

Radon is also common. The EPA recommends testing all homes regardless of location (U.S. Environmental Protection Agency).

Older lake cottages can have outdated septic systems, and future sewer projects often come with special assessments that hit wallets hard.

Not scary — just important to know.

The Balance – Why People Still Choose Michigan

Living in Michigan can be incredible:

• Lakes everywhere
• Strong community pride
• Four true seasons
• A path to homeownership that’s still realistic in many areas

But it comes with terms and conditions:

• High taxes and insurance
• Older homes
• Winter
• Infrastructure quirks
• Bugs, allergies, and potholes

Every state has trade-offs. Michigan just puts them all on the table.

So let me ask you — does knowing the real Michigan make you hesitate… or does it make you want it even more?

FAQ – Living in Michigan (Copy-Friendly Sources)

Is Michigan actually affordable?

Often yes on home prices, but true affordability depends on taxes, insurance, utilities, and maintenance (U.S. Census Bureau, Michigan Realtors).

Why do taxes jump after buying a home?

Because Michigan allows taxable value to uncap after ownership transfers (Michigan Department of Treasury, Proposal A).

Why is car insurance so expensive?

Michigan’s no-fault system and ZIP-code-based pricing drive higher premiums (Michigan DIFS, Insurance Information Institute).

Are winters really that bad?

They’re long, cloudy, and cold — but manageable with the right expectations (NOAA, WeatherSpark).

Should I worry about radon or well water?

Testing is recommended statewide; issues vary by location (EPA, EGLE).