Michigan Land Values Explained: From $9,333 to $247,000 Per Acre

Discover why Michigan land prices vary so dramatically across the state. This episode breaks down the 26-to-1 price difference between Michigan's most expensive and cheapest land, exploring the three key factors that determine value: location premiums, proximity to major cities, and parcel size.

Learn why Leelanau Peninsula commands nearly $247,000 per acre while Upper Peninsula counties offer land for under $10,000. We cover the hidden challenges of buying cheap UP land, how remote work is reshaping rural property demand, and why future climate trends could dramatically shift regional values.

Whether you're a land investor, prospective buyer, or simply curious about Michigan real estate, this episode provides data-driven insights into what drives land values across the Great Lakes State.

Read the full data analysis: cost of land by acre and county in Michigan

Looking to sell land in Michigan for cash? Get a fair offer today.

Episode Transcript

Emma (00:00):
Welcome to the Land Deal, the podcast where we explore
land opportunities andinvestment strategies and market
insights across America.
I'm your host, Emma Dezima, andthis is episode two.
Today we're diving deep intothe Michigan land market, where
price disparities are absolutelywild.
Did you know you could buy 26acres in the Upper Peninsula for

(00:22):
the cost of just one acre inMichigan's most expensive
region?
We're breaking down exactlywhat drives these extreme
differences, from waterfrontpremiums to the hidden
challenges of buying cheap ruralland.
Whether you're a seasonedinvestor or just curious about
Michigan real estate, you'llwalk away understanding the

(00:43):
three key factors that determineland values across the Great
Lakes State.
Let's get started.
The price gap betweenMichigan's most expensive and
cheapest land is so extreme.
You could buy 26 acres in theUpper Peninsula for the cost of
just one acre in the state'spriciest region.
Let's explore what's drivingthese wild differences.

Jake (01:05):
Those numbers are mind-boggling.
What exactly creates such amassive disparity in land
values?

Emma (01:11):
Well, it really comes down to three main factors.
First, you've got the up northpremium.
Places like Lillanao Peninsulacommanding nearly $247,000 per
acre because of their LakeMichigan frontage and vacation
appeal.

Jake (01:26):
That's an incredible premium for waterfront property.
What about the other factors?

Emma (01:31):
The second big driver is proximity to major cities.
Take Washtenau County aroundAnn Arbor.
Land there goes for over$152,000 per acre for small
parcels.
And Oakland County near Detroitshows similar premium pricing.

Jake (01:48):
Hmm, and I'm guessing the third factor has to do with
parcel size?

Emma (01:52):
Exactly.
The price per acre dropsdramatically as parcels get
bigger.
In Lilanao County, it fallsfrom $246,733 for small lots to
just $92,610 for two to fiveacre parcels.
By the time you're looking at20 to 100 acres, even the most
expensive counties are under$10,000 per acre.

Jake (02:14):
That's fascinating how the economics of scale works in
land prices, though I imaginemanaging larger properties comes
with its own challenges.

Emma (02:22):
You know, that's a great point.
When you're dealing with biggerparcels, you've got to think
about maintenance equipment,property taxes, and whether you
actually need all that space.
Plus, the features of the landitself become much more
important.

Jake (02:34):
Like how agricultural potential affects prices for
larger parcels in places likeHuron County.

Emma (02:39):
Exactly right.
And speaking of land features,let's talk about the Upper
Peninsula.
It consistently offers thelowest prices across all parcel
sizes.
Gaugabic, Iron, and Antonagoncounties are always at the
bottom of the range.
But there's definitely abuyer-beware aspect to those low
prices.

Jake (02:59):
I've heard some horror stories about people buying
cheap UP land without doingtheir homework first.

Emma (03:05):
Oh man, you wouldn't believe some of the situations.
People buy these parcelssight-unseen, only to discover
they've purchased aninaccessible swamp or a heavily
wooded lot with no legal roadaccess.
And don't even get me startedon the seasonal challenges.

Jake (03:22):
Like how a property that looks perfectly accessible in
July might be completelydifferent under five feet of
snow.

Emma (03:29):
Right.
And here's somethinginteresting.
These regional pricedifferences might shift
dramatically in the comingdecades.
Climate change could actuallymake those UP properties more
attractive, while coastal areasmight face new challenges.

Jake (03:45):
That's an intriguing point about future value.
The current price disparitiesmight look very different in 20
or 30 years.

Emma (03:51):
You know what else fascinates me?
How these price patternsreflect historical development.
The old logging and miningregions in the UP still show the
effects of those industries intoday's land values.

Jake (04:03):
So if we're looking at current trends, what's driving
the newest changes in landvalues?

Emma (04:08):
Well, remote work is really reshaping these price
distributions.
We're seeing increased demandfor rural properties with good
internet access, something thatwasn't even a consideration just
a few years ago.

Jake (04:19):
That makes sense.
The pandemic really changed howpeople think about where they
can live and work.

Emma (04:24):
And here's something surprising.
The price differentials betweencounties tend to narrow as
parcel size increases.
That 26 times difference we seein small lots becomes much
smaller when you're looking atlarger acreage.

Jake (04:37):
Well, that certainly changes the equation for
investors looking at differentsized parcels.

Emma (04:42):
Speaking of investors, we're seeing different types of
buyers dominating differentsegments of the market.
The small lot market is allabout primary residences, while
larger parcels attract everyonefrom farmers to hunting clubs to
land speculators.

Jake (04:57):
The recreational aspect is particularly interesting in
Michigan, given the stronghunting and outdoor culture.

Emma (05:02):
And let's not forget about water rights and mineral
rights.
Those can create somesurprising value variations,
even within the same county.
Michigan's water-richenvironment makes those
considerations particularlyimportant.

Jake (05:15):
It really shows how complex land valuation can be in
this market.

Emma (05:19):
You know what it all comes down to?
While these price differencesare dramatic, they're not
arbitrary.
Each region's values reflect acomplex interplay of factors
that smart buyers need tounderstand.
From soil quality to roadaccess, from future development
potential to current userestrictions.

Jake (05:39):
That's why local knowledge is so crucial in this market.
The raw numbers only tell partof the story.

Emma (05:45):
Looking ahead, I think we'll see these regional
differences continue to evolve,but probably not disappear
entirely.
The key is understanding whatdrives value in each specific
area and market segment.