British homebuyers are quietly flocking to one of Midwest’s most affordable states — here’s why

While coastal and Sun Belt states continue to dominate U.S. foreign real estate transactions, Michigan has quietly emerged as one of the top destinations for U.K. buyers drawn by an affordable lifestyle and a long-established job pipeline.

Between April 2025 and March 2026, Michigan was the third most popular landing place for home shoppers from the U.K., capturing 18% of all U.K. purchases nationwide, according to the new National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report between April 2025 and March 2026, Michigan was the third most popular landing place for home shoppers from the U.K., capturing 18% of all U.K. purchases nationwide, according to the new National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report.

In the NAR report, “foreign” or “international” buyers include foreign nationals living abroad, non-U.S. citizens who are recent immigrants (less than two years at the time of the transaction), and visa holders living stateside.

Only sunny California and Arizona ranked higher than Michigan among British buyers, commanding 36% and 27% of transactions involving U.K. nationals, respectively. Meanwhile, the Great Lakes State outpaced traditional international markets like Texas and South Carolina, which each garnered 9%.

“Michigan’s pull for U.K. buyers likely comes down to two threads,” says Realtor.com® economist Jiayi Xu. “On the lifestyle side, the state’s lakefront towns offer the kind of waterfront, second-home living that’s popular back home in the U.K., but at a more affordable price than the U.K. or the Florida coast.

“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.