Find out why people are moving to Lansing Michigan every day. For anyone moving to Lansing or thinking about living in Lansing, be sure to read this article first. We’re going to explore some of the ins and outs of Lansing.
People love living in Lansing and it has been rated one of the most family-friendly cities, as well as one of the most affordable cities in the United States.
If you’re curious about living in Lansing, check out affordable homes for sale in Lansing, Michigan. If you’re considering a move to Lansing, contact our real estate agents to help you buy your next home.
Once you finish this article, you may still have questions. Feel free to reach out to our amazing group of agents with any questions you have. Every situation is unique and that’s where the experience of our agents can help.
Job Market
Lansing Michigan has a fairly healthy job market. Data published by the Bureau of Labor and Statistics last recorded the Lansing unemployment rate at 3.6 percent. Over the last year, the job market has increased by 1.3 percent. Future job growth over the next decade is predicted to be 32.5 percent, which is slightly lower than the national average.
There are various kinds of employment opportunities in Lansing. Some large, notable employers include the State of Michigan, Farm Bureau, Auto Owners, Biggby Coffee, Jackson National Life, Sparrow Medical, McLaren Health, Michigan State University, Liquid Web, Board of Water and Light, and General Motors.
Popular industries in the area include healthcare, insurance, government, law, education, technology, and manufacturing.
With programs like Cooley Law School, many settle into the Lansing area and practice Law for large law firms such as Fraiser-Trebilcock.
A typical commute between home and work averages just 20 minutes. It is fairly easy to get from one side of Lansing to the other. There is often minimal traffic — at least compared to large metropolitan areas like Detoit.
Capital Area Michigan Works! helps to provide training and development to Lansing job-seekers. Some items they help Lansing residents with include obtaining a job, progress in their careers, and resources or funding to get trained.
The median salary in Lansing is listed as $54,800 which is slightly lower than the national average. However, the median income in surrounding cities is listed higher. For example, the median income in Okemos is $78,596.
Tax Rates In Lansing
It is important to note that Lansing has some additional taxes you may find yourself paying. The state of Michigan has an income tax rate of 4.25 percent. It is one of the few states that offers a flat-rate.
A flat income tax rate means Michigan residents pay 4.25 percent on every dollar earned, regardless of their income. Most states have a graduated income tax rate, where the tax rate varies based on how much is earned.
On top of state tax and federal tax, some Lansing residents may find themselves paying a city tax. There are two separate tax rates that exist in the City of Lansing.
- Resident Income Tax Rate
- Worker Income Tax Rate
The resident income tax rate applies to all residents that reside within the city of Lansing, regardless of where they work. There is a 1 percent tax rate for all City of Lansing residents.
Special note: While your address may be in Lansing, you may not live in the City of Lansing and are therefore not required to pay City of Lansing income tax.
The second tax rate applies to people who work in the city of Lansing, regardless of where they live. So, you could live in Okemos and work in the city of Lansing. Those who work in the city of Lansing will find themselves paying an additional 0.5 percent in income taxes.
Income taxes can reduce your disposable income. This is the total amount of money left over after paying taxes and other mandatory charges. It affects your standard of living and should be compared with the cost of living in Lansing.
Cost Of Living In Lansing
Research and data compiled by BestPlaces put the average cost of living in Lansing at 78.6. That means, the average cost of living in Lansing is significantly cheaper and more affordable than many cities in the entire United States.
A score of 100 represents the average cost of living for an individual city. Scores higher than 100 are more expensive than the average city. While scores below 100 are more affordable and less expensive than the average city.
If you’re moving to Lansing Michigan from a state like California, you can expect to save a considerable amount of money on groceries, health care, housing, transportation, and utilities. You can expect to save on pretty much everything.
Surrounding cities have their own cost of living. For example, in cities like Okemos and DeWitt, the cost of living is above 100. The cost of living in these cities is predominantly driven by the median home value.
How Much Do You Need A Month To Live Comfortably in Lansing Michigan?
Living in Lansing requires less money to be comfortable than many cities.
Let’s break down some numbers to give you a rough idea on how much you need a month to live comfortably in Lansing Michigan.
Since the term “comfortable” is subjective and has different meanings to people, the answer is going to make a few assumptions. It also has to make assumptions about household size.
But, here we go…
The average monthly house payment in Lansing for a three bedroom home is $1,048. For the average American, housing tends to be roughly 20 to 30 percent of our monthly income.
Working the math backwards, the average Lansing resident would need to earn between $3,493 and $5,240 after-tax income. If we add back taxes, the pre-tax income range is $4,300 to $6,550.
Single households with minimal expenses should find themselves only needing roughly $4,300 pre-tax income each month to live comfortably in Lansing. A family with children is likely to need the higher end of the income range, and therefore, can expect to need $6,550 after-tax income each month to live comfortably.
Is Lansing Cheap to Live?
Cheap is relative to your income. If you are able to earn a lot, then yes, Lansing is cheap to live. However, if you have limited income, you may find Lansing expensive.
In general, Lansing is affordable and not an expensive city to live in.
The yearly income range required to live comfortably in Lansing Michigan is $51,600 to $78,600. Given the current job market and Lansing economy, it is possible to find a local job earning more than this.
Also, with remote work becoming more popular, there is the option to earn a higher wage than you would earn in Lansing. For example, a financial analyst working remotely for a company based in New York City earns an NYC income with a low cost of living.
There is endless opportunity to earn a significant amount of money with a low cost of living when you move to Lansing Michigan.
Lansing Housing Market
As of 2022, the median home value in Lansing is approximately $142,000, according to Zillow. This is much cheaper than most other cities in the state and the country.
In 2022, home values rose 10 percent. Despite interest rates, housing values are forecasted to maintain current pricing levels or increase slightly.
The housing market in Lansing has cooled off and is shifting to a more balanced market. We are seeing Lansing homes for sale take longer to sell and are selling for a lower percentage of their asking price. However, we are not experiencing a housing market like that of 2008.
More time is needed to accurately predict what will happen to the Lansing housing market in 2023.
Lansing has some of the cheapest housing. However, keep in mind that surrounding Lansing suburbs like Okemos, East Lansing, and DeWitt have a higher median home value. It is often three times the median value of a house in Lansing.
Why Are Houses Cheap In Lansing MI
To understand why houses are cheap in Lansing, it is important to have a concept of supply and demand. Housing prices are driven by the economic principles of supply and demand. Various factors go into influencing the supply-demand curve, such as interest rates, government policy, the job market, overall housing market, the economy, and more.
Let’s look at both aspects of the supply-demand curve.
On the supply side, Lansing has more homes for sale per capita than more competitive real estate markets. As a result, the pool of buyers have more homes to choose from. Of course, the number is currently low, which has pushed home values up in this market, but a lot less when compared to major metropolitan markets.
Lansing has a transient community because of people moving to the area for school or short-term governmental work. So, this increases our supply of homes for sale when compared to other cities where residents tend to live in the home for an extended period of time.
As for the demand side, the area is controlled by average wages and interest rates. People can only pay so much for a house with their current wages and interest rates. As interest rates rise, demand is softening and home values will slow down their growth or move the other way.
Investing in Real Estate
The Dolinski Group was built from a strong foundation of finance, so let’s crunch some numbers to answer the question whether Lansing is a good place to invest in real estate.
Lansing has a median home value of $142,000 as of 2022. The average rental rate for a three-bedroom house in Lansing is $1,200. These numbers will be different if you are planning to buy a multi-family home or an apartment complex.
We’re only going to look at single-family homes in the analysis. At a rental rate of $1,200 per month, that puts Lansing at an average median yearly gross rent of $14,400. This gives us a price-to-rent ratio of roughly 8.96.
Assuming you purchase a property for $142,000 and put 25 percent down at a 7.5 percent interest rate, your monthly mortgage payment is $745. This puts you at a 1.61 debt service coverage ratio.
So, are these numbers good enough to make Lansing a good place to invest in real estate?
That depends on your investing strategy and how it compares to other real estate markets. Compared to other real estate markets, Lansing has a lower price-to-rent ratio and a fair debt-service coverage ratio.
Pros:
- Home prices are lower
- A low price-to-rent ratio makes it easier for new real estate investors to acquire property.
- A higher return on investment and larger potential for profits.
Cons:
- Homes are cheaper so people tend to prefer to buy them. This limits your prospect pool.
- Demand for housing is higher and can make finding good properties more difficult.
- Overall, our opinion is that Lansing is a great place to invest in real estate when compared to other markets. It’s common for the Dolinski Group to work with California residents looking to
- invest in real estate in Lansing. That’s because of the low cost of homes.
Lansing Neighborhoods
Lansing is composed of distinct neighborhoods with their own culture, real estate market, job market, and lifestyle offered. Let’s explore the different Lansing neighborhoods to help you decide where you might want to live in Lansing if you decide to move to Lansing.
REO Town
Located on a bend in the Grand River and south of I-496, REO town is an up-and-coming neighborhood seeing many revitalization efforts. The neighborhood is pronounced like “rio”.
This neighborhood found its identity and name during the 1900’s when REO car manufacturer was a dominant employer in Lansing. REO car company manufactured utility vehicles and semi-hauling trucks.
In the early 1900’s, REO was one of the fourth largest and wealthiest automobile manufacturers in the United States. However, the company would start to decline due to stiff competition from companies like Ford and General Motors. REO would eventually close down and General Motors would be the predominant car manufacturer in Lansing.
Many say as the REO car company went, so did the neighborhood. The neighborhood struggled for many years until the recent market recession where many revitalization efforts have begun.
Now, in this neighborhood, you can find many young working professionals that are making the city an art scene. Companies like the Robin Theater, the Record Lounge, Blue Owl Coffee, and Saddleback BBQ are changing the city.
A big Board of Water and Light co-generation plant is there and Quality Dairy has moved into the old REO manufacturing plant.
Home prices and rent prices are among the lowest in the Lansing area.
Downtown
A small area located in west-central Lansing, Downtown Lansing is the business and governmental district. You will find Cooley law school, museums, the capitol building, and various financial businesses.
The Downtown area is defined as MLK, I-496, the Grand River, and Oakland avenue. Downtown is a great Lansing neighborhood with several amenities nearby and has a great walkability.
There are various renting and buying options in the area such as multi-family properties, above business apartments, and more. The Gillespie Group is developing new apartments in the area.
Downtown is also home to Washington Square, where you can find some great local restaurants.
Stadium District
Located next to Downtown Lansing and defined as the region between the Grand River, Kalamazoo St, S Pennsylvania and W Saginaw.
The Stadium District is a high energy, trend-forward neighborhood full of innovation and is considered one of the fastest growing neighborhoods in Lansing.
Some of the notable businesses are Capital City home brewing supply company and the Michigan distillery. If you are into microbreweries or making your own beer, then this is a great neighborhood to live and visit.
On top of that, you can find the Jackson Field Stadium (formerly Cooley Law School), home of the Lansing Lugnuts. The Lugnuts are a minor league baseball team for Oakland A’s since 2021. Previously they were part of the Toronto Blue Jays.
Also, you will find the Lansing Convention Center which holds events like the Lansing Bridal show every year and the Lansing Home and Garden Show.
The Gillespie Group built the Outfield apartments which provide a unique experience to watch the Lugnuts games and see the fireworks on the nights they have fireworks.
Old Town
Old Town was once the original downtown of Lansing. Now, it is known as a cultural and creative capital for the city. In this neighborhood, you will find many historical residences and businesses. Old Town is north of Downtown and overlooks the Grand River.
You can find eclectic shops, a nice coffee house, and newly developed condo communities. The neighborhood has seen some revitalization efforts to bring back some of the businesses and appeal to more Lansing residents.
One of the most notable businesses near Old Town is Preuss Pets and Cravings Gourmet Popcorn. You can find the Old Town community garden.
Old Town built the first wooden bridge that crossed the Grand River and also one of the first dams along the Grand River. It is also home to Lansing’s first school. There is a lot of rich history in Old Town as being the pioneer of many of the city’s developments.
While Old Town may not have reached its full potential yet, continuous revitalization efforts are underway to make Old Town a great place to live, work, and play.
Eastside
The Eastside neighborhood is nestled between Downtown Lansing and East Lansing. If you love both what East Lansing offers and Lansing, this is the perfect neighborhood to live in. There is always something to do in the Eastside neighborhood.
Some notable businesses and attractions include Strange Matter Coffee, Avenue Cafe, People’s Kitchen, Allen Neighborhood Center, Eastside Fish Fry, Soup Spoon Cafe, and El Oasis. Walking along Michigan Avenue you will find Sparrow Hospital, bars, eclectic restaurants and affordable inexpensive housing.
The affordable, family-friendly, and walkable community is a popular choice for both younger families that have just recently moved to the area and long-term residents who continue to call Eastside their home.
Westside
The Westside neighborhood is another beautiful historic neighborhood located on the westside of Lansing. It is defined as Oakland Avenue, MLK, and the Grand River. According to the WNA, there are approximately 2,000 charming, architecturally stunning houses within the neighborhood’s boundaries.
These homes are true craftsmanship. They are known for their warm interior woodwork and unique character. There is a strong sense of community and is listed as one of the safest neighborhoods in the city.
Residents can take a stroll to Potter Park Zoo. The neighborhood offers several programs and events for kids, adults, and seniors.
Old Oakland
Personally, one of my favorite Lansing neighborhoods. Old Oakland is located northwest of Downtown and borders Waverly.
The neighborhood is predominantly a quieter suburb rather than a bustling downtown full of businesses. Old Oakland is near many of the amenities of Lansing, but offers a quieter experience. You can experience safety, peace, and a quiet area.
There are a lot of parks in the neighborhood such as West Side Park, Dunnebacke Park, R&D Wilson Park, and more. If you love walking and have a dog, this is a great neighborhood to call home.
Cities Near Lansing To Live
Lansing is a great place to live. However, if you are interested in what Lansing has to offer, but do not want to live in the city, then it is worth exploring some of the surrounding cities.
We wrote an article on the best Lansing suburbs, you can read for more detailed information. Some of the cities to research and explore are DeWitt, Grand Ledge, East Lansing, Okemos, St. John’s, Holt, Okemos, and more.
Many of the surrounding suburbs and towns offer highly rated school districts, safe neighborhoods, and affordable housing. You can find things to do in many of the cities such as Horrock’s Market, Uncle John’s Cider Mill, Zap Zone, Sun Theater, Lansing Mall, Meridian Mall and so much more.
Weather And Climate
People considering a move to Lansing wonder what the weather and climate are like, especially if they are moving from a state like California or Texas.
Lansing experiences similar weather and climate to Detroit and Grand Rapids. The city of Lansing has a humid continental climate with warm, hot, humid summers, especially in the months of August and July, and a cold, snowy winter, especially in January and February.
In the hottest months, Lansing Michigan averages a high temperature of 82 degrees Fahrenheit. On the other end, the coldest months get as cold as 17 degree Fahrenheit. Snow mostly falls in January and February, but can be seen in December, November and as early as October in some years. It commonly rains in May, June and September as the temperature shifts.
The positive side of the weather is that Lansing is a low risk area for natural disasters such as earthquakes, tornados, and hurricanes.
What’s Winter Like In Lansing MI?
Winter in Lansing Michigan is considered harsh to some. It certainly gets cold and snows in Lansing. Although rare, there are days when temperature falls below zero. This can cause “cold days” where school is canceled. It’s similar to a snow day, but school is canceled because it is too cold.
Does Lansing Get A Lot Of Snow?
In Lansing it snows roughly 50 inches every year. However, not all of this snow accumulates and is left on the ground at once. You do need to drive carefully and have a plan for when large amounts of snow fall.
This typically happens in January and February.
Does Lansing Get Lake Effect Snow?
No, Lansing rarely experiences lake effect snow. By the time a snow storm hits Lansing, the lake effect has been significantly reduced. In some cases, depending on the speed of a snow storm and the size, a small portion of lake-effect snow can reach Lansing. On average, when lake effect snow reaches Lansing, it can dump about four to six inches of snow.
Other Things To Consider
What Are Pros And Cons Of Moving to Lansing Michigan?
There are both pros and cons of moving to Lansing. This guide to moving and living in Lansing has explored many of them, but let’s summarize them. Each individual will have different pros and cons of the area. Here are some to think about and place them in your pros and cons list if you’re considering a move to Lansing.
The pros include a low cost of living, fun nightlife, revitalization efforts and ongoing investment to improve the city and region. There are four seasons and summer isn’t as hot as southern states, an easy commute, and great economic opportunity for entrepreneurs and small businesses. It is also a great place for real estate investors looking to acquire property. For the Dolinski Group, Lansing is a great place and the pros outweigh the cons.
On the cons side, Lansing can get cold, income taxes if you live or work in Lansing, and there are fewer sunny days than the average city. In addition, if you’re leaving family or friends behind, that is a cons.
Those are the pros and cons and reasons we believe why you should move to Lansing Michigan.
Is Lansing Michigan Walkable
Lansing has a total walkability score of 45/100. However, certain areas of the city have higher walkability scores. For example, Downtown and the stadium district is often more walkable than other areas of the city. Suburbs and surrounding neighborhoods often have low walkability scores. Most residents in Lansing own a car and use it for the main mode of transportation.
What County Is Lansing, MI Located In?
Lansing, MI is primarily located in Ingham County. Although parts of Lansing extend into Eaton County and Clinton County. It is important for people to know there are parts of Lansing that extend into other counties as this can affect your property tax rates. If you are wondering what county Lansing is in, it is safe to assume Ingham County. However, make sure to check with your local Lansing real estate agent to be sure.
Living in Lansing, MI
If you’re thinking of moving to the Lansing, MI area, brace yourself. You are going to enjoy life and work in Lansing!
When you are considering a move to Lansing, we recommend you take the time to visit Lansing first. This way, you can get an idea of the area and find where you would like to live. Team up with a local realtor and ask for neighborhood information.
Hopefully, you enjoyed reading the reasons to move to Lansing. If so, share it with friends!
Considering a move to Lansing? Our team of top local Lansing real estate agents love to help folks make the move to Lansing. Contact us to help with your relocation, move to Lansing, or any questions you may have!
