Where Locals Really Want to Live: Traverse City Neighborhoods with Rising Interest in 2025
Traverse City’s real estate market is entering a new phase in 2025—less frenzied than the pandemic boom, but still highly active, especially in neighborhoods that balance lifestyle, affordability, and long-term value. Whether you’re a buyer, seller, or investor, understanding where demand is heating up can give you a serious edge.
Here’s a breakdown of the Traverse City neighborhoods gaining traction this year:
Downtown Traverse City: Luxury Meets Lifestyle
Downtown remains a magnet for buyers seeking walkability, culture, and high-end living. The median listing price hit $1 million in March 2025—a 13% year-over-year jump—driven by demand for condos and townhomes near the bay and city center. While homes are spending more time on the market (206 days on average), the area continues to attract buyers who value location over speed .
Slabtown & Central Traverse City: The New Urban Core
These neighborhoods are emerging as hot spots for buyers who want proximity to downtown without the premium price tag. Homes here are selling faster than in the city center, with average days on market around 45–48 days. The median sale price in Traverse City overall is up 3.0% year-over-year, reaching $345,000 .
Garfield Township: Suburban Growth with City Access
Garfield Township is experiencing a surge in development, offering new housing options that appeal to families and professionals. Its proximity to Traverse City provides the convenience of city amenities while maintaining a suburban feel. The area is seeing increased interest due to its balance of affordability and accessibility.
Waterfront Properties: Always in Demand
Waterfront homes continue to be the crown jewels of the Traverse City market. Properties along Grand Traverse Bay and surrounding lakes are highly sought after, often commanding premium prices. The allure of lakefront living ensures that these homes remain in high demand, particularly among out-of-town buyers seeking vacation or second homes .
New Developments: Meeting the Demand
To address the growing need for diverse housing options, several new developments are underway. Projects like The Flats and Carriage Commons in Garfield Township are expanding the inventory, offering modern amenities and appealing designs. These developments aim to cater to a range of buyers, from young professionals to retirees .
Looking Ahead: What This Means for You
Traverse City’s real estate landscape in 2025 is characterized by a shift towards balanced growth. While the market is stabilizing, certain neighborhoods are experiencing notable increases in interest and value. For buyers, this means opportunities to invest in up-and-coming areas. For sellers, particularly in high-demand neighborhoods, it’s an opportune time to list.
Staying informed about these trends is crucial. Whether you’re looking to buy, sell, or invest, understanding the dynamics of Traverse City’s neighborhoods will help you make strategic decisions in this evolving market.
Note: All market data is current as of May 2025. For personalized advice, consult with a local real estate professional.