Michigan Rent Prices Forecasted to increase 4.7% in 2025

A new study from Construction Coverage has identified the locations with the biggest change in rent prices.

While, in many ways, the U.S. economy looks strong—with low unemployment levels, easing inflation, and a robust stock market—many Americans continue to feel the squeeze of high costs. The inflation rate has come down from its peak in mid-2022, but the effects of several years of record price increases still linger, leaving households struggling to make ends meet.
One of the most pressing financial challenges for many is the cost of housing. According to data from Zillow, median rents are approximately 35% higher today than they were before the pandemic. With high home prices and mortgage interest rates pricing many would-be buyers out of the real estate market, rentals have been highly competitive.
Underlying these trends is a long-term shortage of housing stock in the United States. Many builders were hard-hit by the Great Recession, and as a result, the U.S. dramatically underbuilt its housing stock throughout the 2010s. Renters are feeling the consequences: rental vacancy rates are near their lowest level on record. In short, this means that more renters are competing for fewer available units.
The long-term supply challenges around housing stock came to a head during the COVID-19 pandemic. Government stimulus and renter protection programs helped keep rents low during the early months of the pandemic, but rent growth began to spike in early 2021. According to data from the Zillow Observed Rent Index, year-over-year rent growth exploded from just under 2% in February 2021 to nearly 16% in February 2022 before falling back down.
By mid-2023, rent growth had slowed to pre-pandemic rates, averaging 3.4% annually over the past year. However, this slower pace doesn’t mean rents have fallen—only that they are rising more gradually. The cumulative effect of rapid price growth continues to strain renters nationwide.
The analysis was conducted by researchers at Construction Coverage, a website that provides construction insurance guides, using data from the Department of Housing and Urban Development’s (HUD) and the U.S. Census Bureau.
Here is a summary of the data for Michigan:
Percentage change in median rent (2024–2025): +4.7%
Total change in median rent (2024–2025): +$61
Median rent (2025): $1,358
Median rent (2024): $1,297