Cost to Own
United StatesMichiganGrand Traverse CountyTraverse City Population 15,491 Data vintage ACS 2023 5-Year Rates updated 2026-07-30

Total monthly cost of ownership

Cost to Own a Home in Traverse City, Michigan

A $368,000 home here costs

$2,975

per month, all in — with 20% down at today's 6.66% 30-year fixed rate.

A standard mortgage calculator would have told you $1,892. The real number is $1,083 higher every month — 57% more than the payment most buyers budget for.

Traverse City median: $367,600
Under 20% adds PMI
Freddie Mac PMMS
US average household

Where every dollar goes

Only the first line is a mortgage payment. Change any assumption above and every figure below recalculates.

Principal & interest30-year fixed, $294,400 borrowed $1,892
Property tax1.218% effective rate for Traverse City itself $374
Homeowners insuranceMichigan averages $993/yr (NAIC), or 0.448% of home value $137
Electricity22.01¢/kWh — Michigan residential average, EIA $198
Water, sewer & trashUS household average $68
Maintenance reserve1% of home value per year $307
Total monthly $2,975

Traverse City against Grand Traverse County and Michigan

MeasureTraverse CityGrand Traverse County
Median home value$367,600$296,200
Median property tax$4,477$2,900
Effective tax rate1.218%0.979%
Median gross rent$983$1,215
Population15,49195,757

Traverse City extends across 2 counties. Figures here use Grand Traverse County, where most of its housing sits.

The weather behind that power bill

Traverse City sits in Grand Traverse County, which averages a high of 81.3°F in its hottest month and a low of 16.3°F in its coldest, with 29.12" of precipitation a year and 34% of it in a single three-month stretch. That climate drives 534 cooling and 7,104 heating degree days, which is what sets the $198 electricity line above.

See the full climate breakdown for Grand Traverse County — month by month temperatures, rainy season timing, snowfall and heating and cooling costs.

Other cities in Grand Traverse County

Full Grand Traverse County cost breakdown · Every county in Michigan

Common questions

How much does it cost to own a home in Traverse City?

A $368,000 home in Traverse City, Michigan costs approximately $2,975 per month with 20% down at 6.66%. That is $1,892 principal and interest, $374 property tax, $137 homeowners insurance, $266 utilities and $307 set aside for maintenance.

What is the property tax rate in Traverse City?

Traverse City has an effective property tax rate of 1.218%, based on a median home value of $367,600 and median real estate taxes of $4,477. That is higher than the Grand Traverse County average of 0.979%.

What is the average home price in Traverse City?

The median owner-occupied home value in Traverse City, Michigan is $367,600, against $296,200 across Grand Traverse County.

Is it cheaper to rent or buy in Traverse City?

Median gross rent in Traverse City is $983 a month, against $2,975 to own the median home all in. Renting costs less month to month here, though renting builds no equity.

Sources & methodology

  • Median home value, real estate taxes, gross rent and population for Traverse City — US Census Bureau, American Community Survey ACS 2023 5-Year, place-level tables.
  • Homeowners insurance — NAIC average premium for Michigan.
  • Electricity price — EIA Electric Power Monthly Table 5.6.A.
  • Mortgage rate — Freddie Mac PMMS, refreshed weekly.
  • Maintenance (1%/yr) and water and sewer ($68/mo) are national estimates. Every assumption above is editable.

Full methodology