After October ended, I took a moment to summarize the numbers for Ann Arbor. To get straight to the point, rents have slightly increased, while home prices are showing signs of stabilization.

However, there's something to note. As of mid-November, the official monthly sales statistics for October based on local MLS data have not yet been released within the scope I checked.

Therefore, this article will include updated data up to the end of October along with the most recently confirmed figures. I will also provide sources and reference points for each statistic.

First, let's talk about rents. According to RentCafe, the average rent in Ann Arbor, updated on October 30, 2026, is $2,092 per month.

This is a 1.93% increase from $2,052 a year ago. While it's not a huge jump, considering the atmosphere from this time last year, it represents a significant change.

The real estate data company RealPage reported that effective rents in Ann Arbor dropped by 6.1% over the year leading up to October 2025. During the same period, the overall U.S. saw a decline of only 0.8%, indicating a notably larger drop in our area.

If the term effective rent sounds unfamiliar, think of it this way: it's the amount tenants actually pay after discounts like the first month free are deducted from the advertised price.

At that time, the largest drop was seen in Class C properties, which are older buildings with average amenities, at 9.7%. In contrast, Class A properties, which are newer, only saw a 1.2% decline.

Since the sources differ, we shouldn't directly compare these two figures. However, in terms of trends, it seems that after last year's significant adjustment, this year is a phase of stabilization.

By unit type, according to RentCafe, the average rent for a one-bedroom is $1,698, for a two-bedroom is $2,001, and for a three-bedroom is $2,784. The burden definitely increases starting from three bedrooms.

Next, let's discuss home prices. The transaction aggregation site Resideline reported on November 4 that the median value for 663 transactions over the past six months is $466,400.

The median value is different from the average. Simply put, it's the price of the house that falls right in the middle when all the sold houses are lined up by price, making it less susceptible to a few high-priced outliers.

According to the same data, the median time from listing to contract was 25 days. This means that decent homes are still being sold within a month.

According to data from Realcomp, the median home price in Ann Arbor was $483,500 in February 2026. This is lower than the $520,000 from the same month last year.

Zillow's estimates show a different figure. As of the end of June, the typical home value was $540,694, indicating a 3% increase over the past year.

This is not the actual sale price but an index calculated based on estimated values of homes in the neighborhood. Therefore, it's not unusual for it to be higher than the median sale price.

In summary, I believe the actual sale prices are fluctuating in the high $400,000 range and have not shown a clear increase compared to last year. I recommend checking the exact October figures once Realcomp's monthly report is released.

This season's hot topic is short-term rentals. On July 20, the Ann Arbor City Council passed a resolution directing the city's legal team to draft an ordinance to pause new short-term rental licenses for six months.

The voting results vary in reports, with some stating 8 to 1 and others 7 to 1. What's clear is that the renewal of licenses for existing legal establishments has been allowed to continue.

The issue raised by the city was the discovery of numerous unregistered short-term rentals, many of which are located in residential areas. The logic is that they encroach on homes that should be available for long-term rentals.

Importantly, this resolution does not immediately impose a ban. The actual ordinance must be separately introduced and go through public hearings and a second reading, and I have not confirmed whether it will ultimately be enacted.

If you are considering investing in Airbnb, be sure to check the city council's Legistar records or ask the relevant department at city hall about the current status. If you purchase a home and cannot obtain a license, your profit calculations will be completely off.

Another significant trend is land use planning. On March 16, the city council unanimously approved a comprehensive land use plan outlining development directions through 2050.

The key point is that it proposes to allow duplexes and triplexes in residential areas where only single-family homes can currently be built, with duplexes housing two families and triplexes housing three families.

However, a plan is not the same as a law. The planning commission is responsible for translating this into actual zoning codes, and there are concerns from residents about preserving historical integrity.

From an investor's perspective, the value of older single-family homes with large lots could change in the long term. On the other hand, current residents may worry about changes in neighborhood density.

So, what should you do now? If you're a tenant, since rents haven't significantly increased, there may be room to negotiate the increase when renewing your lease.

If you're a buyer, remember that the average time from listing to contract is 25 days. There's no need to rush, but if you take weeks to decide on a home you like, you might miss out.

If I were looking to purchase for short-term rental income, I would hold off for now. Until regulations are finalized, it's safer to only consider homes that meet long-term rental criteria for profitability.

Once the November statistics are released, I will compare them with the confirmed figures from October. Since numbers can vary by source, it's crucial to avoid making decisions based on just one site's figures.