Pure luxury, pure Michigan: why a hidden gem along the Great Lakes is stealing the spotlight
A serene Midwestern town is a hidden gem to much of the country, but not to the locals who have flocked to this lakeside retreat in the northern part of Michigan.
It is the charming, picturesque town of Petoskey.
The surprising city was on the March 2026 Realtor.com® Pure Luxury List, where more than half of all active listings are worth $1 million or more, and the average listing price starts above $1 million.
“Petoskey differentiates itself from many other coastal and mountain resorts by offering both water and ski access in a single market, anchored by a historic, walkable downtown that remains active year-round despite some long winters,” says Realtor.com senior economist Anthony Smith.
“Unlike many purpose-built resorts in the West, Petoskey has more than a century of history as a Great Lakes vacation destination, with a cultural identity shaped by Victorian-era tourism, and is a premier Midwest destination with a true ‘small-town feel,’” Smith explains. “The recent new construction has caused prices to rise, but the market is retaining its character.”
Even with an average price of $1,111,175, Petoskey’s prices are much lower than other cities on the luxury list.
“For buyers attracted to the Great Lakes region, the value proposition is striking,” says Smith. “A home on the water or with access to the ski slopes in Petoskey can cost a fraction of what comparable properties in Aspen or Jackson Hole fetch.”
Aspen’s average listing price is $1,647,500, while Jackson Hole’s rises even further to $1,746,750.
Smith says Michigan’s overall lower cost base plays a role. “Buyers in Petoskey get a true luxury lifestyle, complete with boating, golf and slopes within minutes, without the prices that have become standard in many Western luxury destinations,” he explains.
Lives in Petoskey
Shawn Peterson has lived in Petoskey since 1992. He owns it The Grove Drink Cafe and is also known locally as a DJwhich provides music for many area weddings, fitting since Petoskey is a popular wedding destination.
“I love the city of Petoskey,” he says. “You have water activities, snow sports and four different seasons. It has a quaint, small-town feel.”
Petoskey real estate agent Geno D’Angelo by The D’Angelo Group tells Realtor.com that the area attracts visitors year-round thanks to its wide range of seasonal activities.
“You have bike trails and hiking trails, but you’re also only 15 minutes from the ski hills,” he explains.
Driven largely by tourism, Petoskey’s population grows dramatically in the summer, from about 5,000 residents to nearly 50,000, notes Peterson.
After spending summers in Petoskey as a child, Peterson says he has seen the city change significantly over the years. As the luxury market has expanded, so has the real estate tax base, with much of that revenue flowing back into the city.
“We have so many amenities, like lots of greenery, beautification projects and a lot of things that add so much character to the city,” he says. “It was amazing to watch.”
Although the average listing price has surpassed $1 million, Peterson notes that the median household income is still just $74,196.
He says running a business in Petoskey means appealing to wealthy homeowners while remaining accessible to locals — which he says can sometimes be a “tricky balancing act.”
Tracy Nehrkornowner of Antique shop Then & Nowgrew up in Petoskey and moved away for several years after high school. “But I settled here in 2001 and raised my daughter in Petoskey,” she tells Realtor.com. “I have a newfound love for Petoskey – because of the safety, great schools, clean air, friendly people, multiple lakes and thriving economy.”
Local real estate market
D’Angelo says many remote workers moved to Petoskey during the COVID-19 pandemic — and prices have more than tripled since then.
The average list price in March 2020 was $349,950, a whopping $761,225 less than today.
However, that has not slowed down the market.
“There’s very low inventory and it’s very competitive,” D’Angelo says. “In fact, we’re still seeing bidding wars.”
While Michigan’s average listing price is just $274,950, 53% of all listings in Petoskey are priced at $1 million or more. The 90th percentile of $3.5 million and the 99th percentile of nearly $8 million reflect a market where luxury lakefront properties and resorts set the tone for the entire area.
