While coastal regions and Sun Belt states remain the prevailing choices for international real estate buyers in the U.S., Michigan is quietly becoming a sought-after location for U.K. buyers. Attracting attention due to its cost-effective lifestyle and a robust employment landscape, the state has carved out a unique niche among foreign investors.
Between April 2025 and March 2026, Michigan ranked as the third most favored destination for U.K. homebuyers in the United States, accounting for 18% of all U.K. property acquisitions across the nation. This insight comes from the latest National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report.
The NAR report defines “foreign” or “international” buyers as individuals who are foreign nationals residing outside the U.S., recent immigrants who have been in the country for less than two years, and visa holders currently living in the U.S.
Among British buyers, only the sunlit locales of California and Arizona surpassed Michigan, capturing 36% and 27% of U.K. investments, respectively. Interestingly, Michigan outperformed traditionally popular foreign buyer markets like Texas and South Carolina, which each received 9% of the U.K. property purchases.
“Michigan’s appeal to U.K. buyers probably stems from two main factors,” explains Realtor.com® economist Jiayi Xu. “Lifestyle-wise, the state’s charming lakefront towns offer the idyllic waterfront and second-home living that reminds many Britons of home but comes at a far more affordable price than they might find on the Florida coast or back in the U.K.”
“On the business side, Michigan’s deep, decades-old ties to the auto industry mean a steady flow of relocation opportunities for U.K. professionals in roles tied to Ford, GM, and their supply chains.”
This trend is rooted in strong cross-border economic ties going back decades and anchored in automotive technology collaborations.
According to U.K. government trade data, British subsidiaries employ nearly 40,000 workers across Michigan, making the U.K. one of the leading sources of direct foreign investment in the state.
Overall, U.K. homebuyers accounted for 4% of all foreign real estate purchases in the U.S. in 2026, unchanged since 2024. Meanwhile, Michigan ranked as the eighth most popular destination across all foreign buyer groups, at 3%.
On Realtor.com this spring, buyers from the U.K. made up 6% of international traffic to Michigan, the second-largest group of foreign browsers.
Michigan’s British invasion
Jaye Sanders, managing broker at Nextpointe Real Estate Service in Royal Oak, MI, has worked with international buyers over the past six years and says U.K.’s ascendance as a major feeder market for Michigan comes as no surprise.
“It makes sense based upon how affordable our market is. It makes sense based upon the fact that we’re a major hub. … You can pretty much fly anywhere you need to fly,” Sanders tells Realtor.com. “And it makes sense because Michigan is a fantastic place to live and bring your family.”
The broker emphasizes that, in accordance with Michigan’s Fair Housing guidelines, she never collects information on her clients’ racial or cultural background, but confirms she has helped U.K. buyers purchase homes in Michigan.
“I have had quite a few buyers who’ve come from other countries, and they’ve specifically been interested in the resurgence of Detroit,” says Sanders.
Motor City, long celebrated as the beating heart of America’s automotive industry, declared bankruptcy in 2013 and became a symbol of urban decay. In the decade since, Detroit has experienced a remarkable economic turnaround highlighted by downtown revitalization, multiple consecutive balanced budgets, and recent population growth.
Location and affordability
Many of Sanders’ international buyers, among them British subjects, are drawn to Detroit’s location offering easy access to neighboring Canada, a fellow commonwealth nation. Other crucial selling points include Michigan’s world-class freshwater lakes and its impressive affordability.
She points out some of her foreign clients are shocked that they can afford to purchase a waterfront property in Michigan for a fraction of what it would cost elsewhere.
Michigan’s lower property taxes also play a significant role.
“If you compare our property taxes to a state like California or even a state like New York, it’s a lot more affordable to live in Michigan,” notes Sanders.
The broker explains that many of her international clients work in the automotive sector and arrive on temporary corporate assignments. A large portion of them purchase waterfront condominiums or co-ops in downtown Detroit or Grosse Pointe near General Motors and Ford facilities as part of a long-term investment strategy.
“They look at the price, they look at the location close to the water, and they believe that in a few years, obviously the market will go up and they will sell,” says Sanders.
This cohort of buyers typical look for turnkey, low-maintenance properties in gated communities overlooking the Detroit River or Lake St. Clair that are priced in the $200,000 to $250,000 range.
“They want something that they can move in and immediately ‘plug and play,’” says Sanders.
The idea is that rather than spending money on rent, the expats live in their condos while their work assignment is active, and then convert them into short- or long-term rentals to generate passive income for years to come.
Those who relocate to Michigan from abroad on a more permanent basis and arrive with families tend to prioritize top-rated school districts and single-family homes with backyards, typically shopping in the $250,000 to $400,000 range.
In July, the median asking price in the Detroit metro was $275,000, down 1.8% from a year ago and more than $150,000 below the national median.
Demand for Michigan housing remains strong across multiple international demographics. Beyond ranking third among U.K. buyers, Michigan was the fifth most popular destination for shoppers from Canada and India, and the sixth most popular for Chinese investors, according to the NAR report.