Michigan's population stabilizes, housing market sees modest gains
What's driving growth
Job growth in Michigan is primarily occurring in non-cyclical industries such as healthcare, leisure and hospitality, and government. Manufacturing, professional and business services, and trade, transportation, and utilities sectors are largely holding steady. Detroit's economy is also showing resilience, with a projected increase in general tax revenue for fiscal year 2026.
Housing market right now
Michigan home prices are experiencing stable growth, with the typical home value in the mid-$250,000s and prices rising roughly 3% year over year. Forecasts project 3-5% price growth into 2026 for regions like Southeast and West Michigan. Inventory levels are increasing, offering buyers more choices, and sellers are more willing to negotiate on repairs and closing costs.
Migration patterns
Michigan's inbound and outbound migration reached near parity in 2025, according to data from moving companies like U-Haul, Atlas Van Lines, and United Van Lines. The state recorded a net gain of 1,796 people from domestic migration between July 2024 and June 2025, marking the first such gain since at least 1990. High-earning individuals are more likely to move into the state, while lower-income residents tend to leave.
Headwinds
Michigan faces a demographic "speed limit" due to an aging population and stagnant workforce participation, which could constrain economic growth. New tariffs on steel and aluminum imports are expected to reduce employment in transportation equipment manufacturing by approximately 600 jobs by 2026, with a broader impact of around 2,300 total job losses statewide. Talent attraction and retention remain a significant challenge for Michigan organizations, particularly in service industries.
Key facts
- Michigan's personal income per capita is projected to average 3.6% per year between 2025–2026, reaching $68,200 in 2026. (University of Michigan, February 2025)
- The state's general minimum wage is set to rise from $12.48 to $13.73 per hour on January 1, 2026. (ClickOnDetroit, December 2025)
- The FY 2026 state budget includes nearly $2 billion for roads, bridges, and public transit. (NAIOP, October 2025)
- Six Michigan-headquartered companies, including Plante Moran and Rocket Companies, were named to Fortune's 100 Best Companies to Work For 2026 list. (Patch, April 2026)
- Michigan's overall population grew to 10,127,884 as of July 2025, an increase of 0.3% from the previous year. (U.S. Census Bureau, January 2026)