This Midwestern City With a Famous Name Is Suddenly a Housing Hot Spot—and It Offers Free College Tuition

One Midwestern city with a very famous name climbed a staggering 46 spots on the Wall Street Journal/Realtor.com® Housing Market Ranking—and although it’s still affordable, demand is driving up prices.

Kalamazoo, MI, which was ranked No. 60 just a year ago, now sits at No. 14.

So what makes this place with the lyrical name—made famous in 1942’s “I’ve Got a Gal in (Kalamazoo)” by Glenn Miller—so desirable?

Answer: location, location, location.

The relatively small city in the southwestern part of the state is 40 miles east of Lake Michigan, “making summertime day trips to the lake an easy feat,” says Hannah Jones, senior economic research analyst at Realtor.com.

Kalamazoo is a well-located hub halfway between Detroit and Chicago. It’s also a couple of hours north of Fort Wayne, IN, which ranked No. 1 on our top housing list, and 90 miles from Ann Arbor, MI, our No. 9 pick.

Here’s everything you need to know about this city, founded in 1831 and still thriving today.

Houses are scarce

The number of homes for sale in Kalamazoo during the second quarter of 2024 was 36.3% lower than before the COVID-19 pandemic, and new listings were down 5.6% year over year.

“This scarcity drove price growth in the area,” says Jones.

There are currently 475 homes for sale, and properties spend a median of 31 days on the market before being snatched up.

“The Housing Market Ranking surfaces areas that offer a strong real estate market, a robust economy, and plenty of attractive amenities,” says Jones. “These areas saw some combination of strong homebuyer demand, quick home sales, and significant price growth over the last year and are likely to sustain this growth with stable economies and access to amenities.”

The ranking looked at the 200 largest metropolitan areas and weighed real estate demand, housing inventory, median days on the market, price trends, property taxes, climate risks, unemployment rates, wages, regional price parities, percentage of foreign-born residents, small businesses, amenities, and commute times in these areas.

What a home will cost you

The median list price in Kalamazoo was $375,000 in June.

However, home prices in this Michigan city are rising quickly, with prices 13.1% higher than a year ago and 41.1% higher than before the pandemic.

“Prices are on the rise due to significant buyer demand,” says Jones.

Even so, the average home in Kalamazoo still goes for about $70,000 less than the national median home price of  $445,000.

“With our wonderfully low cost of living combined with affordable home prices, young people can really see themselves getting into the housing market here,” says Jane Ghosh, president and CEO of Discover Kalamazoo.

Who’s checking out Kalamazoo

Kalamazoo is getting noticed by people far and wide these days.

A whopping 71.3% of home listing views came from outside the metro area during the second quarter of 2024.

The most would-be buyer attention came from Detroit (14.3%), followed by Washington, DC (11.2%), and New York City (10.9%).

The health care industry is booming

Many out-of-town buyers are likely drawn by Kalamazoo’s strong economy, which Jones says revolves around health care and health care-adjacent technologies and education.

The world headquarters of the medical technology company Stryker is located here, and it’s one of the area’s major employers.

Pharmaceutical giant Pfizer’s largest manufacturing site is in Kalamazoo as well.

“We’ve got top-notch employers, so our residents are able to work in world-class facilities,” explains Ghosh.

Free college tuition

Any parents stressing about how they are going to pay for their child’s college tuition might also be tempted by the city’s anonymously funded program Kalamazoo Promise.

The program—the first of its kind in the country—provides graduates of Kalamazoo Public Schools up to 100% tuition for post-secondary education anywhere in the state of Michigan.

“That’s another great reason for parents to move here—free college! And it’s funded in perpetuity,” says Ghosh.

More city highlights

With roughly 262,000 residents, Kalamazoo was the 15th-smallest market out of the 200 areas analyzed.

But it packs a big punch in terms of what it offers residents.

“There are so many things to do in nature, since we’ve got a plethora of amazing parks and hiking trails,” says Ghosh. “There are 83 inland lakes in Kalamazoo County alone.”

This craft beer destination is home to Bell’s Brewery, the oldest craft brewery east of Colorado. Want a burger with your beer? No problem—locally owned and operated restaurants abound.

Kalamazoo also has a vibrant arts scene, with many museums, theaters, and music venues.

“With so many extraordinary amenities and attractions, Kalamazoo provides an incredible quality of life,” says Ghosh.

Ready to shop for a home in Kalamazoo? Check out these listings below.

3416 Kent Ave, Kalamazoo, MI 

Price: $215,000

213-215 Elm St, Kalamazoo, MI

Price: $574,900

904 S Rose St, Kalamazoo, MI

Price: $200,000