I'm Chris Simpson with Five Star Real Estate, and I work the Muskegon market every single day. If you're thinking about buying, selling, or investing in Muskegon County right now, here's the honest, boots-on-the-ground picture you won't find on Zillow or Redfin — and what it means for you in 2026.
The Big Picture: Where the Market Stands Right Now
Muskegon's 2026 market has found its footing. After the pandemic frenzy and the rate-shock slowdown, we've landed in a healthy, normalized place — prices still appreciating, inventory slowly growing, and some genuinely exciting economic news fueling long-term demand.
Here's what the latest data shows:
- Muskegon City Median Sale Price: $194,000
- Average Days to Pending: 7 days (Zillow, February 2026)
- Michigan Statewide Median (January 2026): $254,900 — up 3.5% year-over-year
- Michigan Sale-to-List Ratio: 97.2% — buyers and sellers are meeting in the middle
- Muskegon's Redfin Compete Score: 72 out of 100 — still a seller's market
The takeaway: well-priced homes in Muskegon are still moving in under two weeks, sometimes faster. This is not a market where buyers can afford to sleep on a good listing.
Inventory: More Options — But Still Competitive
Buyers have more to choose from than they did in 2022, when you'd list a home Thursday and have six offers by Saturday. That pressure has eased — but only partially. Michigan's statewide inventory is up about 1.7% year-over-year, which helps, but low supply remains the single biggest factor keeping prices from softening.
The "mortgage lock-in effect" is still real. Homeowners who locked in 2.8–3.5% rates in 2020–2021 aren't eager to trade up to a 6.5–7% mortgage. That keeps listings constrained. The good news: life happens — retirements, growing families, job relocations — and that steady trickle of new listings is giving buyers real options heading into spring.
Bottom line for buyers: Get pre-approved now and be ready to move fast. Bottom line for sellers: You still have the upper hand, but accurate pricing matters more than it did two years ago.
Price Trends: Steady Gains, No Crash in Sight
Michigan home prices are forecast to appreciate 2–4% in 2026 — healthy, sustainable growth. Muskegon city saw a striking 22% year-over-year jump in late 2025 as buyers discovered its value relative to Grand Rapids and Holland. That catch-up is normalizing, but the underlying demand is real and I expect 3–5% annual appreciation to continue.
One thing I always remind clients: Muskegon County is not one market. Lakefront homes in Beachwood-Bluffton can hit $410,000. Lakeside single-family homes average around $210,000. Muskegon city entry-level starts around $150,000–$200,000. Where you buy matters as much as when you buy.
Looking ahead: If mortgage rates ease toward 6% later in 2026 — which multiple forecasters project — expect buyer demand here to accelerate fast. Muskegon's affordability advantage will pull even more buyers west from Grand Rapids and Chicago.
Muskegon's Economic Momentum: The Story Behind the Numbers
Real estate values don't rise in a vacuum. Here's why I'm more bullish on Muskegon's long-term trajectory than I've ever been:
$821 million in capital investments have been secured by Greater Muskegon Economic Development (GMED) over the past two years — with a reported $854 return for every $1 invested in economic development efforts.
On February 4, 2026, Governor Whitmer announced that Motiv Bowling will bring 90 new jobs and an $8.9 million investment to Muskegon — starting wages above the regional median. That's 90 new households that will need homes in our community.
And the biggest story of all: The Shaw Muskegon — a $230 million adaptive reuse of the former Shaw Walker factory — will deliver 500 new housing units downtown as part of a 1,500-unit, five-year city plan. It's the largest project of its kind in Michigan state history and has received one of fewer than 10 transformational brownfield approvals ever granted in the state.
When major capital follows a community this deliberately, property values follow. I've watched it happen in Grand Rapids. It's happening here now.
Muskegon vs. Grand Rapids: Why the Gap Still Matters
Grand Rapids is a great city. But in 2026, the price gap between there and Muskegon has become a powerful force pushing buyers toward the lakeshore — and for good reason.
| Factor | Grand Rapids | Muskegon |
|---|---|---|
| Median Home Price | ~$300,000–$325,000 | ~$194,000–$240,000 ā |
| Lake Michigan Access | 45–60 min drive | Minutes away ā |
| Downtown Investment | Mature, stabilizing | Active — $230M+ Shaw Project ā |
| Drive to Grand Rapids | — | ~40 min via US-31 |
At today's rates, that $70,000–$116,000 price difference translates to $450–$750 less per month in mortgage payments. And you're closer to the lake. Chicago buyers have figured this out — they're now the largest out-of-state group searching for homes in Muskegon. Grand Rapids buyers are close behind.
Neighborhood Spotlights: Where to Focus in 2026
Norton Shores — Best for Families
Median price: ~$280K–$355K
The Mona Shores school district — particularly its nationally recognized performing arts program — drives consistent demand here. Add Lake Michigan proximity, P.J. Hoffmaster State Park, and tree lined suburban streets and you have Muskegon County's most reliably in-demand sub-market. Multiple offers are still common on well-priced homes.
Lakeside — Best for Character and Community
Median price: ~$210K (single-family)
Tree-lined streets, cottage-style homes, walkability to the water — Lakeside has a quality of life you can't manufacture in a new subdivision. It's also a strong vacation rental market for investors. With downtown's revitalization accelerating nearby, I see this neighborhood as a 5-year outperformer.
North Muskegon — Best for Waterfront Lifestyle
Median price: ~$299K
Tucked between Muskegon Lake and Bear Lake, North Muskegon is as close to a permanent vacation as you can get in West Michigan. Inventory is extremely tight — homes averaged just 9 days on market in 2025. If this is your target, you need an agent with their ear to the ground. Call me.
Sheldon Park — Best Value Play
Mid-range pricing
Established, community based, family-friendly, and consistently appreciated. Sheldon Park is where I send first-time buyers who want a solid Muskegon address without the waterfront premium. With new jobs arriving in the region, workforce housing demand here stays strong.
Downtown Muskegon — Best Long-Term Investment
Variable pricing — highest upside potential
The Shaw project, active brownfield development, new businesses, and serious institutional investment are turning downtown Muskegon into a genuine urban core. Buyers who got into downtown Grand Rapids in 2011 look like geniuses today. I believe downtown Muskegon buyers in 2026 will feel the same way in 2035.
Quick Advice: Buyers and Sellers
If You're Buying in 2026
- Get pre-approved first. Homes are still moving in 7–9 days in the hottest neighborhoods. No pre-approval means no competitive offer.
- Don't wait for the perfect rate. When rates drop, competition increases. Buy now, refinance later — "marry the house, date the rate."
- Think lifestyle first. The ferry to Milwaukee. Flights from Muskegon County Airport. Pere Marquette Beach. The 40-minute drive to Grand Rapids. Muskegon's lifestyle-to-cost ratio is genuinely hard to beat.
If You're Selling in 2026
- Your equity is likely better than you think. Michigan non-waterfront homes are up ~51% since 2020. Waterfront properties are up ~77%.
- Price it right the first time. 23.9% of Michigan homes had price drops in January 2026. Overpriced homes sit. Well-priced homes sell — often with multiple offers.
- List in March or April. That's when Chicago and Grand Rapids buyers start their summer home search. Being on the market before that surge is a real advantage.
Common Questions I Hear Every Week
Will prices drop in 2026? Analysts don't expect a meaningful correction. Michigan prices are ~80% above pre-COVID levels with sustained demand and limited supply. Modest appreciation is the expected story.
Is Muskegon good for investment? Yes — three ways: value-add city properties, short-term vacation rentals near the lake, and downtown-adjacent buys ahead of the Shaw project's full impact.
What's the best neighborhood for families? Norton Shores for school quality, Sheldon Park for value, North Muskegon for outdoor lifestyle. It depends on what matters most to your family.
How quickly can I expect to sell? Well-priced homes in desirable areas are still moving in under two weeks. Pricing and presentation determine everything in this market.
Let's Talk
Muskegon in 2026 is a market I'm genuinely excited about — for buyers, sellers, and investors alike. The economic wins are real, the lifestyle value is undeniable, and the price-to-quality ratio compared to every other lakeshore market in the Midwest is still remarkable.
If you're ready to make a move — or just want to know what your home is worth today — reach out. I'll give you a straight answer.
š (231) 215-7229
š chrissimpsonwestmichiganrealestate.com
Chris Simpson, REALTOR® | Five Star Real Estate — Muskegon
Serving Muskegon County and all of West Michigan
Data sourced from Redfin (January 2026), Zillow (February 2026), Houzeo, GMED, and the Michigan Governor's Office. For informational purposes only. Chris Simpson is a licensed Michigan REALTOR® with Five Star Real Estate. Equal Housing Opportunity.
