Rankings/Ann Arbor, MI

Ann Arbor, MI

NeutralTier 1CBSA 11460Compare

Risk Rank: #77 of 273Month: 2026-08Score change (12m):↑ +19

56score

Composite risk percentile vs 273 metros (higher = higher risk)

Executive Summary

Ann Arbor's housing market shows average risk, ranking 77th of 273 metros. The market recently entered Hypersupply. Inventory levels are elevated, warranting monitoring. Inventory accumulating faster than demand — the market is shifting toward buyers.

Ann Arbor experienced a market correction from early 2025 through mid-2025. Elevated inventory persists, suggesting the market hasn't fully normalized.

Inventory is elevated (+23% YoY) and days on market are up -2% — supply is building but not yet at stress levels.

Rent growth is roughly keeping pace with price appreciation, suggesting valuations are not stretched.

Cycle Phase

RecoveryExpansionHypersupplyRecession

1 month in current phase

Building activity may be outpacing demand absorption

Key Dynamics

Risk is primarily driven by permit growth and migration, while affordability provides the most support.

Top Drivers

Permit Growthp81

YoY permit change

Migrationp81

Net AGI migration (risk inverted)

Price Momentump73

12-month HPI change

Market Signals

Inventory is elevated (+23% YoY) and days on market are up -2% — supply is building but not yet at stress levels.

Liquidity

Watch↑

Active Listings YoY

+22.6%p73

Days on Market YoY

-2.5%p42

Months in status1

Data through Aug 2026

Valuation

Balanced—

Rent vs. Price Growth

-2.0%p33

Months in status1

Data through Aug 2026Rent growth vs price growth (rent support). Note: Affordability and Valuation measure different structural dimensions and can diverge.

Factor Details

Lower riskHigher risk

Low RiskBelow AvgNeutralElevatedHigh Risk

Price MomentumElevated

+3.3%p73

12-month HPI change — higher = overheating

Permit GrowthHigh Risk

+22.6%p81

YoY permit change — higher = supply pressure

Permits per CapitaNeutral

4.25p52

Permits per 1,000 residents — higher = overbuilding risk

AffordabilityLow Risk

0.23p8

Mortgage payment / income — higher = more burdened

EmploymentBelow Avg

+0.7%p38

12-month employment change (risk inverted)

MigrationHigh Risk

-$40Kp81

Net AGI migration (risk inverted)

National Context

Credit Conditions

Credit Regime

Stable—

Oversupply with deteriorating transactions and no credit excuse. Supply-driven correction risk is elevated.

Bank Lending Standards

+0.0Normal

Rate Change (YoY)

+11 bpsNormal

Mortgage Risk Premium

+196 bpsElevated

Stable for 10 quartersData through 2026-Q3

Supply Pipeline

Supply Regime

Accumulating—

Supply pipeline is building up while credit remains available. New units are accumulating in the system — watch for delivery pressure in coming quarters.

Pipeline Ratio

0.89Elevated

Completion-Permit Divergence

-19.2 ppNormal

Accumulating for 6 quartersData through 2026-Q3

Local Signals

Metro Permit Activity

Permit Activity

Normal

YoY Permit Growth

+22.6%Within norm

Raw signal — not the composite percentile

Relative to 2016–2019 norms for this metro

Based on limited permit volume

Permit activity is typical but demand is softening. Price pressure is forming on the demand side — this is not a supply problem.

Employment Concentration

Employment

Concentrated

Largest SectorGovernment 38.8%

QCEW 2024 annual averages

Internal Structure

County-level structural analysis.

County-level structural analysis is not available for this metro due to fewer than 3 qualifying counties.

Score History

Month	Phase	Score	Price	Permits	Afford	Employ	Migr
2026-06	Rec	59	64	84	8	66	81
2025-12	Hyp	49	30	89	7	37	81
2025-10	Hyp	38	54	12	8	20	91
2025-09	Rec	37	56	12	7	17	91
2025-07	Hyp	38	55	12	8	20	91
2025-05	Ress	40	71	12	8	20	91
2025-03	Ress	40	60	12	7	28	91
2025-02	Hyp	41	64	12	7	29	91
2024-12	Rec	40	54	12	8	34	91
2024-10	Hyp	42	50	12	8	51	91
2024-09	Ress	46	50	12	8	75	91
2024-07	Ress	45	58	12	8	61	91
2024-05	Exp	45	68	12	8	50	91
2024-03	Rec	45	72	12	9	46	91
2024-01	Rec	47	86	12	9	45	91
2023-12	Exp	49	86	12	11	53	91
2023-10	Exp	46	78	12	11	44	91
2023-09	Rec	45	59	12	10	55	91
2023-07	Rec	34	35	12	10	14	91
2023-04	Rec	46	55	12	10	65	91
2023-03	Hyp	42	24	12	8	74	91
2023-01	Hyp	37	24	12	8	48	91
2022-12	Exp	43	27	12	11	79	91
2022-11	Hyp	42	25	12	11	76	91
2022-10	Exp	43	25	12	11	80	91
2022-08	Exp	42	50	12	15	45	91
2022-05	Exp	32	14	12	12	24	91
2022-02	Exp	36	12	12	13	48	91
2022-01	Rec	32	13	12	13	22	91
2021-11	Rec	32	11	12	9	34	90
2021-09	Exp	34	11	12	11	40	90
2021-07	Exp	32	11	12	11	26	90
2021-05	Rec	34	15	12	11	37	90
2021-03	Rec	42	12	12	11	91	90
2021-02	Exp	42	11	12	11	87	90
2020-12	Exp	42	13	12	7	94	85
2020-11	Rec	41	12	12	7	93	85
2020-09	Rec	41	13	12	8	91	85
2020-07	Exp	40	8	12	8	91	85
2020-05	Exp	39	5	12	8	84	85
2020-04	Rec	38	5	12	8	80	85
2020-02	Rec	37	15	12	9	62	85
2020-01	Exp	35	19	12	9	47	85
2019-11	Exp	35	17	12	9	40	92
2019-10	Rec	34	18	12	9	33	92
2019-08	Rec	33	30	12	9	17	92
2019-07	Hyp	32	27	12	9	15	92
2019-05	Hyp	35	47	12	10	9	92
2019-04	Ress	40	52	12	10	35	92
2019-02	Ress	45	74	12	9	45	92
2019-01	Ress	51	81	12	9	73	92

Data Vintages

Price (HPI)2026-Q2

Permits2026-08

Income2024

Employment2026-08

Migration2023