Michigan land prices vary wildly, with one acre in Leelanau County costing as much as 26 acres in the Upper Peninsula. You'll learn the three factors driving these dramatic differences: waterfront location premiums, proximity to major cities, and parcel size.
This episode reveals why Upper Peninsula land sells cheaply, what hidden risks come with bargain properties, and how remote work trends are reshaping Michigan's land market.
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Key Takeaways
- Waterfront locations like Leelanau Peninsula command nearly $247,000 per acre due to Lake Michigan access and vacation appeal.
- Land near major cities like Ann Arbor and Detroit costs over $152,000 per acre for small parcels.
- Price per acre drops dramatically with size, falling from $246,733 for small lots to under $10,000 for 20-100 acre parcels in the same county.
- Upper Peninsula land offers the lowest prices but often includes risks like inaccessible swamps, no road access, and extreme seasonal challenges.
- Remote work is increasing demand for rural properties with strong internet access, reshaping traditional price patterns across Michigan.
Timestamps and Show Notes
00:00 - Introduction: The 26x Price Gap
Opening overview of Michigan's extreme land price disparities and the three factors that drive them.
01:11 - Factor #1: The Up North Premium
Leelanau Peninsula commanding $247,000 per acre due to Lake Michigan waterfront and vacation appeal.
01:31 - Factor #2: Proximity to Major Cities
How land near Ann Arbor and Detroit commands $152,000+ per acre for small parcels.
01:52 - Factor #3: Parcel Size Economics
Price per acre drops dramatically with size—from $246,733 to under $10,000 in the same county.
02:40 - Upper Peninsula: Lowest Prices in Michigan
Gogebic, Iron, and Ontonagon counties consistently offer the most affordable land.
03:05 - Buyer Beware: Hidden Risks of Cheap Land
Horror stories of inaccessible swamps, no road access, and seasonal challenges.
03:29 - Future Value Shifts and Climate Change
How regional price differences might shift dramatically in coming decades.
03:51 - Historical Development Impact
How old logging and mining regions still influence today's land values.
04:09 - Remote Work Reshaping the Market
Increased demand for rural properties with strong internet access.
04:43 - Different Buyer Types by Market Segment
Primary residences vs. farmers, hunting clubs, and land speculators.
05:03 - Water Rights and Mineral Rights
How these create surprising value variations within the same county.
05:20 - Understanding What Drives Value
Why these price differences aren't arbitrary and what smart buyers need to know.
Full Transcript
Emma: 00:00
Welcome to the Land Deal, the podcast where we explore land opportunities and investment strategies and market insights across America. I'm your host, Emma Dozema, and this is episode two. Today we're diving deep into the Michigan land market, where price disparities are absolutely wild. Did you know you could buy 26 acres in the Upper Peninsula for the cost of just one acre in Michigan's most expensive region? We're breaking down exactly what drives these extreme differences, from waterfront premiums to the hidden challenges of buying cheap rural land. Whether you're a seasoned investor or just curious about Michigan real estate, you'll walk away understanding the three key factors that determine land values across the Great Lakes State. Let's get started. The price gap between Michigan's most expensive and cheapest land is so extreme. You could buy 26 acres in the Upper Peninsula for the cost of just one acre in the state's priciest region. Let's explore what's driving these wild differences.
Jake: 01:06
Those numbers are mind-boggling. What exactly creates such a massive disparity in land values?
Emma: 01:11
Well, it really comes down to three main factors. First, you've got the up north premium. Places like Lillanao Peninsula commanding nearly $247,000 per acre because of their Lake Michigan frontage and vacation appeal.
Jake: 01:27
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 around Ann Arbor. Land there goes for over $152,000 per acre for small parcels. And Oakland County near Detroit shows 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 drops dramatically as parcels get bigger. In Lilanao County, it falls from $246,733 for small lots to just $92,610 for two to five acre parcels. By the time you're looking at 20 to 100 acres, even the most expensive counties are under $10,000 per acre.
Jake: 02:15
That's fascinating how the economics of scale works in land prices, though I imagine managing larger properties comes with its own challenges.
Emma: 02:22
You know, that's a great point. When you're dealing with bigger parcels, you've got to think about maintenance equipment, property taxes, and whether you actually need all that space. Plus, the features of the land itself become much more important.
Jake: 02:34
Like how agricultural potential affects prices for larger parcels in places like Huron County.
Emma: 02:40
Exactly right. And speaking of land features, let's talk about the Upper Peninsula. It consistently offers the lowest prices across all parcel sizes. Gaugabic, Iron, and Antonagon counties are always at the bottom of the range. But there's definitely a buyer-beware aspect to those low prices.
Jake: 02:59
I've heard some horror stories about people buying cheap UP land without doing their homework first.
Emma: 03:05
Oh man, you wouldn't believe some of the situations. People buy these parcels sight-unseen, only to discover they've purchased an inaccessible swamp or a heavily wooded lot with no legal road access. And don't even get me started on the seasonal challenges.
Jake: 03:22
Like how a property that looks perfectly accessible in July might be completely different under five feet of snow.
Emma: 03:29
Right. And here's something interesting. These regional price differences might shift dramatically in the coming decades. Climate change could actually make those UP properties more attractive, while coastal areas might face new challenges.
Jake: 03:45
That's an intriguing point about future value. The current price disparities might look very different in 20 or 30 years.
Emma: 03:51
You know what else fascinates me? How these price patterns reflect historical development. The old logging and mining regions in the UP still show the effects of those industries in today's land values.
Jake: 04:04
So if we're looking at current trends, what's driving the newest changes in land values?
Emma: 04:09
Well, remote work is really reshaping these price distributions. We're seeing increased demand for rural properties with good internet access, something that wasn't even a consideration just a few years ago.
Jake: 04:20
That makes sense. The pandemic really changed how people think about where they can live and work.
Emma: 04:25
And here's something surprising. The price differentials between counties tend to narrow as parcel size increases. That 26 times difference we see in small lots becomes much smaller when you're looking at larger acreage.
Jake: 04:38
Well, that certainly changes the equation for investors looking at different sized parcels.
Emma: 04:43
Speaking of investors, we're seeing different types of buyers dominating different segments of the market. The small lot market is all about primary residences, while larger parcels attract everyone from farmers to hunting clubs to land speculators.
Jake: 04:57
The recreational aspect is particularly interesting in Michigan, given the strong hunting and outdoor culture.
Emma: 05:03
And let's not forget about water rights and mineral rights. Those can create some surprising value variations, even within the same county. Michigan's water-rich environment makes those considerations particularly important.
Jake: 05:16
It really shows how complex land valuation can be in this market.
Emma: 05:20
You know what it all comes down to? While these price differences are dramatic, they're not arbitrary. Each region's values reflect a complex interplay of factors that smart buyers need to understand. From soil quality to road access, from future development potential to current use restrictions.
Jake: 05:40
That's why local knowledge is so crucial in this market. The raw numbers only tell part of 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 what drives value in each specific area and market segment.
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About the Land Deal Podcast
The Land Deal is your insider's guide to land investing, pricing, and sales strategies. Hosted by professional land buyers at Prime Land Buyers, each episode explores land values across different states, investment opportunities, and practical advice for landowners looking to sell.
Our hosts have purchased over 130 properties across the United States and bring data-driven insights into what drives land values in today's market. New episodes every week.