A serene, Midwestern city is a hidden gem for much of the country, but not for locals who have been flocking to this lakeside retreat in the northern part of Michigan.
It’s the charming, picturesque town of Petoskey.
The surprising city made the Realtor.com® March 2026 Pure Luxury List—where more than half of all active listings are priced at $1 million or above, and the median listing price starts above $1 million.
“Petoskey sets itself apart from many other coastal and mountain resort communities by offering both water and ski access in a single market, anchored by a historic, walkable downtown that stays active year-round despite some long winters,” says Realtor.com senior economist Anthony Smith.
“Unlike many purpose-built resort towns out 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 destination in the Midwest with a true ‘small-town feel,'” explains Smith. “Recent new construction has pushed pricing upward, but the market retains its character.”
Even with a median listing price of $1,111,175, Petoskey’s prices are much lower than other cities that made the Luxury List.
“For buyers drawn to the Great Lakes region, the value proposition is striking,” says Smith. “A waterfront or ski-access home in Petoskey can come in at a fraction of what comparable properties command in Aspen or Jackson Hole.”
Aspen‘s median listing price is $1,647,500, while Jackson Hole‘s climbs even higher to $1,746,750.
Smith says Michigan‘s overall lower cost basis plays a role. “Buyers in Petoskey get a genuine luxury lifestyle, complete with boating, golf, and slopes within minutes, without the price points that have become standard in many Western luxury destinations,” he explains.
Living in Petoskey
Shawn Peterson has lived in Petoskey since 1992. He owns The Grove Beverage Cafe and is also well known locally as a DJ, providing music for many weddings in the area—fitting, since Petoskey is a popular wedding destination.
“I love the city of Petoskey,” he says. “You’ve got water activities, snow sports, and four distinct seasons. It’s got a quaint, small-town feel.”
Petoskey real estate agent Geno D’Angelo of The D’Angelo Group tells Realtor.com that the area attracts visitors year-round thanks to its wide range of seasonal activities.
“You’ve got bike paths and hiking trails, but you’re also just 15 minutes away from the ski hills,” he explains.
Driven largely by tourism, Petoskey’s population swells dramatically in the summer—rising from about 5,000 residents to nearly 50,000, Peterson notes.
Having spent summers in Petoskey as a kid, Peterson says he’s seen the city change significantly over the years. As the luxury market has expanded, so too has the property tax base—with much of that revenue flowing back into the city.
“We have so many amenities—like tons of green space, beautification projects, and a lot of things that provide so much character to the city,” he says. “It’s been amazing to watch.”
Although the median 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 still staying accessible to locals—which he admits can be a “tricky balancing act” at times.
Tracy Nehrkorn, owner of Then & Now antiques shop, grew up in Petoskey and moved away after high school for several years. “But I settled back here in 2001 and raised my daughter in Petoskey,” she tells Realtor.com. “I have a newfound love for Petoskey—for its 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 that prices have more than tripled since then.
The median list price in March 2020 was $349,950—a whopping $761,225 less than it is now.
However, that hasn’t slowed down the market.
“There is very low inventory, and it’s very competitive,” says D’Angelo. “In fact, we’re still seeing bidding wars.”
While Michigan’s median listing price is just $274,950, 53% of all listings in Petoskey are priced at $1 million or above. The 90th percentile at $3.5 million and the 99th percentile at nearly $8 million reflect a market where high-end lakefront and resort properties set the tone for the entire area.
