Renters’ Market Redux

Rental housing in Washtenaw County is extremely expensive, a new report from the National Low-Income Housing Coalition claims. Of course, the article in the News compares it only to housing in other parts of Michigan, allowing perpetual industry cheerleader Alice Ehn to trot out the evergreen “It’s only because Washtenaw County still has jobs.” What isn’t mentioned, that you can find on the NLIHC website, is that the median price for a two-bedroom in Washtenaw County, $934, is one dollar less than that in the Chicago area.

When you compare Ann Arbor to Madison, it gets even more interesting. The median renter income in Madison is slightly higher than that in A2. However, rental prices are significantly lower, with the exception of four-bedroom apartments:

Madison Ann Arbor
0-br $525 $685
1-br $656 $758
2-br $775 $934
3-br $1040 $1175
4-br $1288 $1210

These kinds of statistics are always frustrating because they leave out so many things that any beginning statistics student would want to know: what’s the standard deviation? How does the condition of apartments compare in the two towns? How much more expensive is it to live in the center of town than on the outskirts? But this may provide a little perspective on recent claims about a “renter’s market”.

34 Responses to “Renters’ Market Redux”


  1. And can any of the difference be attributed directly or indirectly to different laws and ordinances governing housing?

    That sure is some disparity though. Any data on how much a LoFT costs in Madison?


  2. The figures given may SAY Ann Arbor, but they actually mean Washtenaw County, and that includes Ypsilanti and points East as well as West. I would have to believe that rents actually in the city of Ann Arbor are higher.


  3. Holy shit those prices are way off. 0-br can be reduced by $100 easily. 1-br and 2-br seem reasonable. 3-br and 4-br are waaay low. Where can I split a house with three friends and pay $302 a month? No where in Ann Arbor is where.

    I swear, it’s like they pulled these figures right out of their ass.


  4. Well, they’re the same for the Ann Arbor area as for Washtenaw County, according to the website. I find that dubious, but we are comparing apples to apples when we compare these figures to the Madison area ones.


  5. (Meaning that the figures for Madison are probably really those for Dane County, I guess…)


  6. Thanks for posting on this because I think it’s important for people to share their experiences relative to the data.

    One of the things I find really striking about the data is that a person needs to earn $17.96 per hour to afford a two bedroom apartment. If I wasn’t married and wanted to live in an apartment with a guest room, I couldn’t afford to rent in Ann Arbor. And I am a Master’s Degree educated professional (who, granted, decided to work for a nonprofit).

    And speaking of a nonprofit, I work for SOS, and we work with homeless families, the majority of whom are single moms with kids. I guarentee you that the majority of those moms are not making $17.96, and if they are, I’d like to see the factored in expenses for child care.

    And while yes I agree that Ann Arbor is doing well and that means more people can afford those rents, I also think it’s a shame we are “univiting” those who are not as well off to live in Ann Arbor. This is a great place to raise kids and it saddens me to know that some moms won’t be able to enjoy the benefits of living in Ann Arbor because they just aren’t the target market. Anyway, I might say more about this on my blog, but I am glad AAIO got the conversation started.


  7. I know what you mean, Nancy, and am glad that you shared your views. I don’t think that the phenomenon is unique to Ann Arbor, though. Isn’t this pretty much the case nationwide? Housing is cheaper the further you go outward from the (desirable) city center. I say ‘desirable’ because of course, if the city in question has a crime ridden inner city, the prices there are quite cheap. Another take on this is that the elderly, who need to be close to services and transportation, can’t afford to be.


  8. The manager (with no previous experience) of the farmers market is
    paid a hefty sum plus health benefits, for working only 2 days per week. Her salary is paid for by vendors. The hefty sum certainly has gained her an affordable place to live in Ann Arbor and reconstructive facial surgery. She probably makes more than most of the farmers.


  9. I have been waiting for a comparison of the Ann Arbor and Madison rental markets, but what I see even more worthwhile is a comparison with the Chicagoland area. When I lived there two years ago, it wasn’t difficult to find a decently sized, hardwood-floored two-bedroom apartment in Lincoln Park for $900 a month. I can’t find a two-bed apartment downtown or in Kerrytown that is at least partially above-ground for that price.


  10. So who is the manager of the farmers market, and what brought all that on? I must have missed a memo.


  11. Katie, send me an email (wendyattoolsheddotbiz)

    I’m moving.


  12. The NLIHC data is given at the County level or the MSA level but in Madison and Ann Arbor, the MSAs are simply defined by their respective counties. So, as you figured out, the county and MSA data are identical.

    2005 ACS estimates can be used to compare rents within the cities themselves and these numbers further highlight AA’s unaffordability. The 2005 median rent in AA was $891 compared to $783 for Chicago and $751 for Madison. Furthermore, only 10% of 1 bedroom apartments in Ann Arbor rent for less than $500 compared to 22% for Chicago and 15% for Madison. For 2 bedrooms, 5% of apartmens in Ann Arbor go for less than $500 compared to 10% for Chicago and 6% for Madison. Finally, median rent as a percentage of household income is 38% for AA, 32% for Chicago, and 30% for Madison so Ann Arbor is expensive even if you account for all those great jobs Alice mentioned.

    Having lived and rented in Madison, Ann Arbor, and Chicago, I was very frustrated and disappointed with my housing options when I moved from Madison to Ann Arbor and I was surprised and pleased with what I could get in Chicago, particularly by choosing a neighborhood that is somewhat less gentrified but still totally great.


  13. OFWInsurgent — You’re moving out of A2, or just out of the OFW?

    Interesting data, Dan — what’s ACS?


  14. I always chuckle to myself when the topic of rent in Ann Arbor comes up. I pay under $500/mo for a small one-bedroom in the OWS. Suckas! The 10% is not a myth. Apartments under $500/mo do exist. It’s not the world’s best apartment, but it’s clean, in a nicely-kept building and not in the basement. I don’t have hardwood floors or unique architectural features, but there is parking, laundry and storage on the premises.


  15. Just curious, Fortunate Son — are you a student? I ask because my experience with nonstudent acquaintances looking to rent has opened up a whole universe of housing possibilities not available to me.


  16. ACS is the American Community Survey, an every-few-year attempt by the Census Bureau to assess what’s going on in the US.


  17. Like Fortunate Son, I too pay little in rent. Prior to this month I had not paid more than $400 a month in rent. I have lived in a 2 bedroom apartment that I got all to myself for less than $400 (all utils included), followed by a 2 bedroom split with a roomate on the Old West Side for around $400 after utils are added in. I am now paying $500 for a finished basement all to myself with my own bathroom (all utils).


  18. Hey Mark,

    Dang that’s great — but why are you moving around so much?


  19. Ann Arbor is overrated. But as long as there are students who will pay this amount, it will only get higher. Just think Google is coming and if Google has the impact like it did in San Francisco the rents will go even higher. I think if we could get better transportation from Ann Arbor to outlying areas the rents would level out. There are affordable condo’s and homes within 20 miles of Ann Arbor: but you have to have a car. For the life of me I can’t understand why at the minimum their are not regularly scheduled buses from Ann Arbor to Downtown Waterfront Detroit for example. If I were living in Ann Arbor I’d start buying some property because when google comes watch out!


  20. Do we have a commuter train to Detroit?


  21. I am not a student. However, I found the apartment near the end of my tenure at the university. At the time, I was finishing the last of my credits as an undergraduate and working full-time. I found the apartment through an ad in the Ann Arbor News.

    Admittedly, my situation is unique. Or perhaps, my landlord is unique. He owns only one rental property and he practices an informal rent-control and my rent has not been raised in five years. I was lucky to find the apartment. If I was looking for an apartment in the same neighborhood now I would not expect to find anything near what I currently pay. Actually, five years ago, I didn’t think I could find anything for that price.


  22. Y’know, I keep hearing from people, “Wow, you should have been here 5 or 10 years ago. It was so cool!” What happened? Or is it all a lie?


  23. Well, not 5…


  24. nostalgia ain’t what it used to be, either. sigh.


  25. “For the life of me I can’t understand why at the minimum their are not regularly scheduled buses from Ann Arbor to Downtown Waterfront Detroit for example.”

    Sure you can. Contemplate what’s in Detroit, who lives there, and the likely nature of the passengers coming here from there, and I’m sure it’ll come to you pretty quickly.

    Can you say “NIMBY?” Can you say “hypocritical limousine liberals?”


  26. i can say “bullshit.”


  27. bullshit


  28. see?


  29. Surely you can’t deny that rich liberal whites, whether in Ann Arbor or elsewhere, tend to be very enthusiastic about “diversity” as long as it isn’t in THEIR lily-white neighborhoods.


  30. “Surely you can’t deny that rich liberal whites, whether in Ann Arbor or elsewhere, tend to be very enthusiastic about “diversity” as long as it isn’t in THEIR lily-white neighborhoods.”

    Sure, could be. The “bullshit” is probably due to the total lack of evidence that this has anything to do with the level of bus service.

    And in fact, there *are* regularly scheduled buses between Ann Arbor and downtown waterfront Detroit. Don’t ask me why people don’t use them. I wish they were more frequent.


  31. There are 3 Greyhound routes per day from Ann Arbor to Detroit. The buses leave at 1:55pm, 4:10pm, and 10:25pm, and take from 1:05 to 1:15 (scheduled) to get there. The one way fare is $8.

    Detroit to Ann Arbor leaves at 7:45am, 2:50pm, and 6:00pm.

    There’s no way you could use these routes for an Ann Arbor to Detroit commute, and the Detroit to Ann Arbor commute is also just about impossible.

    As to why the trip doesn’t get more use, this comment from a blog hints at the reason:

    “There’s a stopover in Detroit, where we watch the sun rise and I take pictures that don’t come out on my last disposable camera. I would think that the Detroit Greyhound Station would have to be just the saddest place on Earth but that distinction goes to the station in Gary, Indiana.”

    http://reverendlabrat.blogspot.com/2006/11/i-like-art-i-hate-art-perpetual-motion_18.html


  32. There’s no way you could use these routes for an Ann Arbor to Detroit commute.

    Yeah, looks fairly useless either for spending the day or the evening there. Greyhound may not be the only choice, though on a quick search the only other I find is the Amtrak Thruway bus, which isn’t great either.

    “As to why the trip doesn’t get more use… “I would think that the Detroit Greyhound Station would have to be just the saddest place on Earth but that distinction goes to the station in Gary, Indiana.””

    Sadder than the inside of your average parking structure?


  33. Here’s a field report from the Hamtramck Star on the Detroit to Ann Arbor commute via Amtrak:

    http://hamtramckstar.com/index.php/2006/08/02/commuting_by_train_field_report

    note that a 10-ride pass is $90 which gets the cost to $9/trip.


  34. Here’s a link to the SEMCOG Rapid Transit Plan website:

    http://www.annarbordetroitrapidtransitstudy.com/

    According to an NPR report the line could be up and running by the end of the year, if all goes well.

Leave a Reply

Logged in as . Logout »