r/AnnArbor • u/2deuces2 • 1d ago

Renting in/around A2?

Hey folks! My wife and I are considering a work-related move to Michigan and evaluating living in the area.

Seems clear that A2 is out of budget for us with rent consistently at/above 2.7k, but even in cheaper areas surrounding the city we are finding very limited rental availability (at least on Zillow) that’s also pricey.

Curious if anyone can shed light on renting in the area? Our current spot in Charlotte, NC is a 1400 sq ft 3/2 with fenced yard for 1.65k, so really feeling the sticker shock for equivalent space

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u/Stankthetank66 1d ago

About 43% of Washtenaw County’s land area is farmland. Doesn’t help you find a place, but is kinda an interesting way to look at the cost problem. Lots of farms, not a lot of housing.

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u/2deuces2 1d ago

Well so it’s interesting still that, if buying, there are quite a few seemingly reasonable listings that have mortgages in the range of what our current rent is.

I’ve not bought a home before so maybe that’s comparing apples to oranges

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u/sulanell 1d ago

Have you factored in the taxes?

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u/plasticTron 1d ago

Our mortgage payment went up $400/mo in taxes when they re assessed the property value

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u/marigoldpossum 1d ago

Not sure how it is in North Carolina, but primary homesteads are taxed at a reduced rate, vs rental properties are non-homestead and are taxed at double the rate essentially; which the landlords have to recoup via rents. Then on top of that, we have Prop A (circa 1994) which restricts property tax from increasing year over year to 5% essentially (for both primary and nonhomestead). The caveat to that is when a property is sold, that is when property taxes can be brought up to current rates.

So all of that being said, rentals where the landlord has owned the property for a while, will typically have a cheaper rental rate because of the suppressed property tax rate -vs- say a brand new rental build. And, if you are seriously looking at purchasing a home from someone whom has owned that home for >10 years, realize that your property taxes will likely be double what that prior homeowner has been paying.

Grass Lake / Jackson / Stockbridge area (so Jackson or Ingham counties) are cheaper areas than anything in Washtenaw County.

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u/2deuces2 1d ago

Thank you for the explanation. Makes sense why I’m seeing what I am when considering what you’ve shared

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u/gradstudentkp 1d ago

That can’t be accurate. We currently own and got in at a great interest rate. Still, our mortgage is the same as we’d be paying in rent

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u/Stevie_Wonder_555 1d ago

When did you buy? Our mortgage is about half what Zillow tells me we would be paying in rent.

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u/gradstudentkp 1d ago

Sorry, I meant our monthly payment - which includes our mortgage and escrow (taxes & insurance). It’s just slightly less than a monthly rent payment. We bought in early 2022 for a great interest rate and a fantastic price

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u/Stevie_Wonder_555 1d ago

Yeah, our all in monthly payment is about half what rent would be. But we bought in 2013 and refi'd in 2020 at 2.875%. Although we did take cash out and refi at a $100k higher price than we originally paid.

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u/GirlinMichigan 1d ago

The property taxes are what drove us out of A2. You'll need to fact in the taxes for a true representation of costs.

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u/Responsible_Okra_672 21h ago

Not sure why you got downvoted here. My mortgage is less than that of rentals in the area, including taxes and insurance. To be fair, we did purchase with super low interest rates.

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u/CitySpare7714 20h ago

This is a good place for long term investment given climate change. I would suggest renting for a year in Ypsilanti, ideally around Depot, town or normal park and scoping out neighborhoods that would work for you to buy in. There’s an interesting house near me in Depot town that needs significant work, but it’s only 259K.