Michigan Beach Homes (2026): Best Places to Buy

Looking for a beach house in Michigan? You’re not alone. With 3,200+ miles of freshwater shoreline and towns like Traverse City and Saugatuck surging in demand, Michigan is a rare mix of affordability and investment appeal.

• Lower prices than coastal states like Florida or California
• Strong Airbnb potential in top towns (some 70%+ summer occupancy)
• From Lake Huron hideaways to upscale west coast retreats-there’s a fit for every buyer

Whether you're eyeing the best places to live on the water in Michigan or simply want a peaceful Lake Huron beach house, this 2025 guide breaks it down by town, lifestyle, and ROI.

Bottom line: Beach homes in Michigan range from $250K in Caseville to $600K+ in Saugatuck-offering coastal value far below other states.

Want a cost breakdown by state? See how much it costs to build in Michigan

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Michigan’s real estate market has seen steady appreciation, particularly in waterfront communities. In 2025, Michigan’s median home price remains more affordable than in many other coastal states, making it a smart investment for buyers looking for long-term value.

Michigan’s beach towns attract millions of tourists each year, thanks to their sandy shores, state parks, and vibrant downtowns. Cities like Traverse City and South Haven are Airbnb-friendly, offering strong short-term rental demand with occupancy rates exceeding 70% during peak summer months.

Unlike Florida or California, Michigan offers beachfront properties at a fraction of the price, with lower property taxes and more affordable homeowners’ insurance rates, as there’s no hurricane risk.

From summer boating and beach lounging to winter snowmobiling and cross-country skiing, Michigan’s coastal towns provide year-round recreation, increasing the desirability of vacation homes.

Michigan has several incredible beach towns, each offering unique benefits to homebuyers. Below, we compare seven of the best locations for investing in a beach house in Michigan in 2025.

Traverse City is known as the Crown Jewel of Michigan’s Coast, offering stunning views and a charming small-town atmosphere.

Why Buy Here?

• High appreciation rates (5-8% annually)

• Thriving tourism industry (1M+ visitors per year)

• Wine country, fine dining, and festivals draw affluent buyers

Median Home Price (2025): $450,000

Rental Potential: High (Airbnb & vacation rental-friendly)

Best For: Investors, luxury buyers, retirees

• Pros: Strong short-term rental demand, excellent dining, vibrant community
• Cons: Higher home prices, competitive market

South Haven offers a family-friendly beach lifestyle with sandy shores, great schools, and a charming lighthouse.

Why Buy Here?

• Sandy beaches & lighthouse charm

• Family-oriented with excellent schools

• Summer vacation hotspot

Median Home Price (2025): $350,000

Rental Potential: Moderate to High

Best For: Families, vacation homebuyers

• Pros: Walkable downtown, safe community, good appreciation potential
• Cons: Seasonal tourism means fluctuating rental demand

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Discover Grand Haven, a classic Michigan beach town with an iconic pier, a famous state park, and a booming rental market, perfect for investors and second-home buyers.

Why Buy Here?

• Rated one of the best beach towns in the Midwest

• Thriving short-term rental market

• Home to one of Michigan’s most famous state parks

Median Home Price (2025): $400,000

Rental Potential: High

Best For: Investors, second-home buyers

• Pros: Iconic pier, strong summer rental income, easy drive from Grand Rapids
• Cons: Higher property prices due to demand

Saugatuck offers a blend of artistic charm, upscale beachfront living, and a vibrant community, making it ideal for luxury buyers and investors.

Why Buy Here?

• Known for its art galleries, boutique shops, and high-end real estate

• LGBTQ+ friendly and a popular tourist spot

• Strong second-home and rental market

Median Home Price (2025): $600,000

Rental Potential: High (Premium vacation rental market)

Best For: Luxury buyers, investors

• Pros: Beautiful homes, excellent appreciation, vibrant community
• Cons: Expensive compared to other Michigan beach towns

Ludington offers affordable living with beautiful sand dunes and hiking trails, perfect for retirees and nature lovers.

Why Buy Here?

• More affordable than Traverse City & Grand Haven

• Stunning sand dunes and hiking trails

• Ideal for outdoor lovers and retirees

Median Home Price (2025): $300,000

Rental Potential: Moderate

Best For: Retirees, budget-conscious buyers

• Pros: Low cost of living, peaceful environment
• Cons: Less nightlife and dining options

Caseville is a charming, budget-friendly spot on Lake Huron, perfect for vacation home buyers and investors looking for a peaceful getaway with great beach access and a fun local festival.

Why Buy Here?

• Known for its "Cheeseburger in Caseville" festival

• Beautiful, sandy Lake Huron beaches

• Lower home prices with strong potential for appreciation

Median Home Price (2025): $250,000

Rental Potential: Moderate

Best For: Budget investors, vacation home buyers

• Pros: Low cost of entry, charming small-town vibe
• Cons: Limited year-round entertainment

Mackinaw City is a charming historic town with beautiful lake views and a unique chance for investors and history lovers to thrive in a busy tourist market.

Why Buy Here?

• Gateway to Mackinac Island, a major tourist destination

• Historic charm with stunning lakefront views

• Unique short-term rental market (limited real estate availability)

Median Home Price (2025): $375,000

Rental Potential: High (Seasonal tourism-driven)

Best For: Investors, history buffs

• Pros: High demand for vacation rentals, historic appeal
• Cons: Harsh winters, seasonal rental market

Michigan’s real estate market remains strong in 2025, with increasing home values and growing demand for beachfront properties. Premium waterfront markets like Traverse City, Saugatuck, and Grand Haven have seen 5-8% annual appreciation, while South Haven, Ludington, and Mackinaw City offer 6-10% growth, driven by vacation rental demand and second-home buyers.

• Seller’s Market: Traverse City, Saugatuck, Grand Haven (High demand, low inventory, rising prices)

• Balanced Market: South Haven, Ludington, Mackinaw City (Strong rental demand but opportunities still available)

• Buyer’s Market: Caseville, Tawas City, Manistee (Affordable homes, growing investment potential)

• High Rental Yield (7-12%): South Haven, Mackinaw City, Grand Haven (Strong Airbnb potential)

• Steady Growth (5-7%): Ludington, Manistee, Tawas City (Long-term rental appeal)

• Luxury Appreciation (4-6%): Traverse City, Saugatuck, Grand Haven (Best for resale value and high-end buyers)

With a mix of affordable beachfront homes, strong vacation rental demand, and increasing property values, Michigan continues to be a prime destination for those looking to invest in a beach house in 2025.

Owning a beach house in Michigan comes with ongoing expenses such as property taxes, homeowners insurance, maintenance, and utilities. These costs vary based on location, property type, and whether the home is used as a primary residence, vacation home, or rental property.

• Most Expensive → Traverse City, Saugatuck, Grand Haven (1.6%-1.8% taxes, $2,500–$5,000 insurance)

• Mid-Range Costs → South Haven, Ludington, Mackinaw City (1.4%-1.6% taxes, $1,800–$3,500 insurance)

• Most Affordable → Caseville, Tawas City, Manistee (1.2%-1.4% taxes, $1,200–$2,500 insurance)

• Luxury Markets (Traverse City, Saugatuck, Grand Haven) → $6,000–$12,000 per year in maintenance, higher costs for dining and entertainment

• Mid-Range (South Haven, Ludington, Mackinaw City) → $4,000–$8,000 per year, moderate grocery and utility costs

• Affordable (Caseville, Tawas City, Manistee) → $3,000–$6,000 per year, lower cost of living and utilities

• Best Airbnb ROI → Traverse City, Grand Haven, South Haven (Rental income can cover 100%+ of expenses)

• Moderate ROI → Mackinaw City, Ludington, Saugatuck (Covers 60-80% of ownership costs)

• Lower Rental Demand → Caseville, Tawas City, Manistee (Better for long-term ownership rather than short-term rental income)

• For affordability → Caseville, Tawas City, Manistee

• For luxury buyers → Traverse City, Saugatuck, Grand Haven

• For investors → South Haven, Grand Haven, Mackinaw City (high rental ROI)

Michigan’s coastal towns offer a diverse range of lifestyles, from luxury lakefront communities to quiet, nature-focused retreats. Whether you’re seeking a vibrant vacation hotspot, a family-friendly beach town, or a peaceful retirement haven, Michigan has an ideal location for you.

Unlike Florida’s year-round warmth, Michigan offers four distinct seasons, each bringing unique outdoor opportunities. Summer temperatures range from 75°F to 85°F, perfect for swimming, boating, and beachside relaxation. Winters can be cold and snowy, making way for snowmobiling, ice fishing, and cozy lakefront getaways.

• Traverse City & Saugatuck: Mild summers with cool breezes, ideal for wine tasting, sailing, and fine dining along the waterfront.

• South Haven & Grand Haven: Popular for beach lovers, featuring sandy shores, scenic piers, and iconic lighthouses.

• Ludington & Mackinaw City: Best for nature lovers, with hiking trails, sand dunes, and access to national parks.

• Caseville & Lake Huron Towns: Quieter, small-town feel with beautiful beaches and a strong sense of community.

Michigan’s beach towns offer high-quality education and healthcare, making them ideal for families and retirees. Below is a snapshot of top schools and medical facilities in these areas:

Michigan’s beach towns each offer a unique community atmosphere, whether you’re looking for a lively destination or a peaceful retreat.

• Traverse City & Saugatuck: Upscale and vibrant, featuring boutique shopping, wineries, and cultural events.

• South Haven & Grand Haven: Family-friendly with picturesque beaches, waterfront dining, and bustling summer tourism.

• Ludington & Mackinaw City: Ideal for outdoor lovers, offering state parks, nature preserves, and charming small-town life.

• Caseville & Lake Huron Towns: Relaxed and quiet, great for retirees or those seeking a laid-back beach lifestyle.

Buying is best if you:

• Plan to use the home for vacations or as a permanent residence
• Want long-term appreciation & rental income
• Prefer lower costs vs. other coastal states

Renting is best if you:

• Only visit seasonally and want flexibility
• Don’t want to worry about maintenance or market fluctuations

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