When you spend a long time in real estate in Lansing, you often hear similar questions. More people are looking for single-story homes without stairs. Recently, a couple came to me wanting to sell their two-story house and move to a ranch-style home, meaning all rooms are on one level. As people age, it's natural for mobility to become more burdensome. However, there are questions to consider before moving to a single-story home or a condo.

The first question that arises is the price difference. The median home price in Lansing is around $150,000, with condos at $149,900 and single-family homes at $145,000. Compared to other major cities in Michigan, prices are generally lower, so it's good to know that even if you downsize, you might not see a significant price difference.

The next common question is about property taxes. The average property tax rate in Michigan is 1.54%, but Ingham County, where Lansing is located, has a relatively high effective tax rate. This means that even within Lansing, the tax burden can vary significantly depending on which county you are in. When looking for a home, it's important to first check whether the address is in Ingham County or Eaton County.

The third question concerns heating costs. Michigan winters are long and cold. The average electricity rate in Michigan is about 19.35 cents per kilowatt-hour, with an average monthly bill of around $121.71, and heating and cooling account for nearly half of that bill. It's worth considering that single-story homes may have larger roof areas, which could lead to higher heating costs compared to two-story homes. On the other hand, condos share walls with neighboring units, resulting in less heat loss and relatively lower heating costs.

The fourth question is about tax relief. Michigan offers a Homestead Property Tax Credit, allowing households with an income of $71,500 or less as of 2025 to receive a refund of up to $1,900. If you are over 62, you can also defer summer property taxes. Additionally, if you stay in the same home, Proposal A helps keep the taxable value increase tied to the lower of inflation or 5%, meaning that older homes often have lower assessed values compared to market prices.

The final question is about maintenance responsibilities. Even though it's a single-story home, the yard, roof, and plumbing are ultimately the homeowner's responsibility. If you move to a condo or an active senior community, lawn care and snow removal are included in the HOA fees, but don't forget that this comes with a fixed monthly expense ranging from $200 to $400.

When moving to a condo, repairs for common areas like roofs or exterior walls are covered by the HOA reserves, but if the reserves are insufficient, special assessments may arise, so it's wise to check the financial status beforehand. Lansing has a steady rental demand due to the presence of the Michigan state government, so some families are considering renting out their current homes instead of selling. However, becoming a landlord comes with new responsibilities for insurance and management, so it's not just a matter of comparing taxes.

There are also differences in insurance costs. Single-story homes may have larger roof areas, leading to similar or even higher insurance premiums compared to two-story homes, while condos share the cost of insurance for the building's exterior and roof through the HOA, requiring individuals to only obtain insurance for their interior facilities. East Lansing and downtown Lansing, while in the same metropolitan area, have differing school districts and rental demands, so if you're considering renting, it's advisable to compare the two areas separately.

The couple looking for a single-story home ultimately calculated the taxes and maintenance costs and decided to make some improvements to their current home instead of moving. They concluded that renovation costs were more reasonable than moving. Since tax and HOA regulations can vary by county and community, it's important to verify the specific address before making a final decision. This article is not investment or legal advice, and consulting a professional before making any agreements is recommended.