If you have been watching the Ann Arbor real estate market, you already know it remains competitive, even as activity has started to normalize. Prices have stabilized compared to the peak frenzy, but demand is still strong, especially in well located neighborhoods. For many buyers, the $500,000 price point sits right at the sweet spot between affordability and long term value.

So what does a $500K budget actually buy you in Ann Arbor right now? Here is what buyers can realistically expect in today’s market.

A Wide Range of Homes Under $500K

Homes priced under $500,000 in Ann Arbor still offer meaningful variety. Buyers are not limited to one style or layout, especially if they are open to different parts of the city.

At this price point, you can typically find:

• Single family homes with 2 to 4 bedrooms in established neighborhoods
• Condos and townhomes with lower maintenance responsibilities
• Homes ranging from 1,200 to over 1,800 square feet
• Older homes with character, some updated and others ready for improvement
• Properties with finished basements, fenced yards, or detached garages

While turnkey homes move quickly, buyers who are flexible on finishes or timing often have more options than expected.

Where $500K Still Goes Further?

Location continues to matter, but $500K still has buying power in several parts of Ann Arbor.

Buyers often find better value in:

• West Ann Arbor, where lots tend to be larger and neighborhoods are more residential
• Northeast Ann Arbor, offering proximity to downtown with more modest price points
• Areas just outside the city core, where square footage increases without a dramatic price jump
• Condo communities near the university, ideal for buyers prioritizing walkability and convenience

Being open to multiple neighborhoods can significantly expand available inventory and improve overall value.

Market Conditions Are Creating More Opportunity

The market today looks different than it did a few years ago. Homes are spending slightly more time on the market, and buyers are seeing fewer extreme bidding wars.

Current conditions mean:

• More room for negotiation in certain price ranges
• Greater opportunity to complete inspections and due diligence
• Less pressure to waive contingencies
• Inventory that feels less constrained than in recent years

For buyers in the $500K range, this shift creates a more balanced environment without sacrificing quality or location.

The Bottom Line

A $500,000 budget in Ann Arbor can still open the door to great opportunities, but knowing where to look and how to act matters more than ever.

With the right strategy, buyers can find:

• Homes in desirable neighborhoods
• Multiple property types that fit different lifestyles
• Solid long term value in a competitive market
• Better negotiating opportunities than in recent years

If you are thinking about buying in Ann Arbor, now is the time to get clear on what your budget can truly deliver. A local, data-driven approach can help you identify the best options, understand current pricing, and move with confidence when the right home appears.

Curious what $500K buys you right now? Let’s take a look together and explore listings that match your goals, timeline, and priorities.