Insights into the growing appeal of the lakeside town of Traverse City, Michigan

The aquamarine blue of the waters of West Grand Traverse Bay glistening in the sun, pristine public beaches where children play and adults soak up the sun, and the scenic Boardman River flowing through town where salmon and steelhead trout leap around for the catch: that’s Traverse City, Michigan.

“Traverse City is a hidden gem that is growing,” said Andrew Castillon, founder of Compass’ Lincoln Advisory Group. “I like to call it the ‘Hamptons of the Midwest,’ but I think we have a much stronger sense of community and more activities.”

Another advantage Traverse City and its surrounding communities have over the Hamptons? They’re still relatively affordable, with the average cost of homes in the city in the mid-six figures. But luxury isn’t far away either: New and updated waterfront homes offer a prime location for watching boats pass by in the summer or snowfall in the winter.

A measure of demand shows that about half of the city’s prospective buyers are from out of state, according to second-quarter data from Realtor.com, with the majority of those buyers coming from the suburbs of Washington, DC, New York City, Chicago and Atlanta.

Limits

About a four-hour drive northwest of Detroit lies Traverse City, a coastal town whose boundaries have expanded as summer visitors flock to its crystal-clear waters. (Take, for example, the official U.S. census figure of 15,700 residents, while the metropolitan area population is nearly 154,000, according to Data USA.)

Traverse City is located on the southern tip of West Grand Traverse Bay, an arm of Lake Michigan that forms the city’s northern border. Munson Medical Center – a major employer and magnet for young professionals – is located on the western end of the city, and Cherry Capital Airport is located to the southeast.

Price range

A waterfront home is the ultimate luxury here and the price reflects that.

Take, for example, a waterfront home just north of Traverse City on the Old Mission Peninsula, the spit of land that juts up between East and West Grand Traverse Bay. Built in 2019, the 8,000-square-foot, clapboard-clad home with 175 feet of water frontage has five bedrooms and five-and-a-half bathrooms. It’s being offered for $9.5 million by Pat Leavy, founder of Kidd & Leavy Real Estate.

Kyle O’Grady, a broker with Re/Max, said waterfront homes typically cost between $2.5 million and $7 million, including his offer for a new, 3,400-square-foot home on the Old Mission Peninsula overlooking East Grand Traverse Bay. The four-bedroom, three-bathroom home is asking $2.85 million.

Traverse City’s historic downtown area has more modest and often older homes that average about $450,000, Castillon said. The median asking price in Traverse City is $479,900, according to Realtor.com.

Housing stock

“There’s no real defining architectural style. … That’s what makes it so exciting,” Castillon said, noting that there are Craftsman and Victorian homes with wraparound porches being sold and renovated, as well as lakefront homes that look like they were plucked from the Hamptons with their cedar shingles.

Leavy said he’s seen buyers in their 40s and 50s snapping up some of the older lakefront cottages and modernizing them with folding glass walls and other new embellishments.

“These days, they like more of a clean look,” he said. “They’re renovating these cottages to match the style they want, and that’s modern. They’re not really gravitating toward the older Victorian houses.”

O’Grady said there is little new construction, but it has grown in popularity over the past five years as buyers flocked to the area during the pandemic, wanting to take advantage of the area’s four-season outdoor lifestyle.

Traverse City is also home to the Central Neighborhood Historic District, which preserves the character of approximately 550 downtown buildings, mostly built in the late 19th and early 20th centuries in the Queen Anne, Italianate and Neo-Georgian styles.

What makes it unique

The east and west Grand Traverse Bays are a source of picture-perfect fresh water so clear it makes boaters and swimmers think they can touch the bottom. The pristine nature of the water is a great source of pride for the area, Castillon said.

Traverse City is also home to a nonstop calendar of summer events. There’s the National Cherry Festival, held every year the week of July 4th – the city is known as the Cherry Capital of the World – which this year featured the bands Stone Temple Pilots and Goo Goo Dolls. Or the Traverse City Horse Shows, an annual 13-week horse competition that draws talent from across the country. There are also plenty of smaller one-off events that the city carefully tracks on its website.

Due to the attraction of the water and its packed events calendar, Traverse City is a popular summer destination and has bed and breakfasts, hotels and restaurants to handle the influx of visitors.

For fine dining, O’Grady prefers the Boathouse, where ingredients come straight from the farm to the table. He also praises Oakwood Proper Burgers, a takeout joint that offers burgers, fries and milkshakes for a hearty meal at a top price of about $20 per person.

Castillon said the city is also particularly small-business friendly. His favorites are the coffee shop Good Harbor Coffee and American Spoon, a gift shop that sells Michigan-made jams and preserves.

Luxurious amenities

Cherry Capital Airport in Traverse City has expanded its direct flight offerings and is now more easily accessible from major cities like Minneapolis and Dallas, as well as smaller towns like New Haven, Connecticut, and St. Petersburg, Florida. O’Grady added that the area also has plenty of hangar space for those arriving by private aircraft.

The ease with which people can now arrive is boosting real estate prices, Leavy said, and they remain high as young families move to the area. Castillon added that Traverse City’s public schools are top-notch.

There are several marinas nearby that can accommodate large vessels, such as Harbor West Yacht Club, Duncan L. Clinch Marina and East Bay Marina. Castillon said it’s common for yachts to sail into the bays and anchor there for a weekend while enjoying downtown — but the city has more to offer than just the bay.

“You don’t have to be on the water to enjoy Traverse City,” Leavy said. “You can enjoy it by having a home in town and walking to the lifestyle amenities,” such as the Crooked Tree Arts Center and the Higher Arts Gallery. “A little further out in the country, there are world-class golf courses,” he added. He said the Grand Traverse Resort and Spa is a highlight in the area, but there is no shortage of golf courses nearby.

Another attraction is the many wineries. The area’s rolling hills provide a suitable location for grapes that can withstand the cold winter climate, such as Riesling and Grüner Veltliner. Castillon’s favorites are the Mari and Hawthorne wineries, both located on the Old Mission Peninsula.

“I think it’s beautiful because when you look away you see the bays and the water and the aquamarine blue, which makes it a little different than Napa and Sonoma,” he said.

Who lives there

Traverse City is a popular summer destination for both visitors and second home owners, and the population swells during the warmer months.

But since Covid, the area has been attracting newcomers year-round who take advantage of work-from-home policies or are drawn to Traverse City’s vibrant small business scene, O’Grady and Castillon say.

Leary pointed out that while Traverse City is a great community for families, it also requires a little more resilience from its residents during the winter.

“We really have a winter. It’s getting a little colder, it’s snowing a little more,” Leavy said. “So you have to be able to embrace the winter lifestyle. You have to go out, ski or cross-country ski or snowmobile.”

Notable residents

Former HGTV star Carter Oosterhouse and actress Amy Smart, known for her roles in the films “Just Friends” and “The Butterfly Effect,” live in town, O’Grady said. The couple co-own Bonobo Winery in Traverse City, where Oosterhouse also grew up.

outlook

With its abundance of outdoor activities, the city has seen a huge resurgence during the Covid pandemic. Castillon said the city has continued to grow and he expects that to continue in the future as there is a strong job market in healthcare and agriculture in the area. He believes the city is a prime location for young people because of its architectural appeal and business-friendly atmosphere.

“You can appeal to so many different tastes,” he said, “especially Millennial and Generation Z shoppers who are planning to come here to start a business or to shop in some of our booming industries.”