Known for its surreal turquoise water and postcard-worthy sandbars, Torch Lake has earned the nickname “Caribbean of the North.”

Stretching 19 miles and plunging nearly 300 feet deep, it’s Michigan’s longest inland lake—and one of its most coveted.

“Torch Lake is famous for that unreal Caribbean-turquoise water, a massive 19-mile footprint, and party-
meets-postcard sandbar culture that drives national attention and premium pricing,” Erica Collica, a Michigan-based real estate agent, tells Realtor.com®. “It’s Michigan’s longest inland lake and among its deepest, which helps keep the water strikingly clear and cold and gives it a ‘big water’ feel more like the coast than a cottage pond.”

That beauty comes at a premium: Median list prices hover near $1 million, far above the state average. As waterfront prices soar, nearby towns are seeing increased demand from buyers chasing the Torch Lake lifestyle at a more attainable price range.

“Peak-season sandbar scenes, connected boating through the Elk River Chain of Lakes, and long, unobstructed views make it a lifestyle lake with emotional pull,” says Collica. Translation: Buyers want it.

Buyers flock to the lakeside for a different lifestyle

Buyers are increasingly drawn to lakeside living for a multitude of reasons, mainly centered around the unique blend of tranquility, recreational opportunities, and a strong sense of community. The calming presence of water, the potential for an active lifestyle, and the appeal of larger, private lots all contribute to a high quality of life.

The area surrounding Torch Lake is priced well above the state’s norm.

“This area is not affordable to the median-earning Michigan household, with the typical home priced close to $1 million,” says Hannah Jones, senior economic research analyst at Realtor.com.

Collica says Torch Lake attracts “high net worth second-home buyers” and multigenerational family retreat purchasers who want to ditch populated metros for a more serene lifestyle.

“Many are trading up from smaller inland lakes or coming from metro Detroit/Chicago markets seeking a legacy property with dock, sandbar proximity, and rental flexibility,” says Collica. “Nearby communities see a mix—some move-up locals, remote professionals looking for seasonal-to-hybrid year-round living, and investors targeting luxury short-term rental income.”

The median list price for properties around Torch Lake is $989,500—nearly a $1 million investment.

Collica says Torch Lake waterfront properties span roughly $950,000 to around $10 million, with many showpiece estates listed between $2 million and $5 million. She notes that seven-figure asking prices are common for quality frontage.

“The area around Torch Lake tends to be priced higher than areas more inland. Demand to be close to the water tends to drive prices higher,” says Jones.

“While many households struggle to afford a home purchase, high-earning buyers and homeowners can take advantage of their existing home equity to purchase a second home. Generally, constrained buyer demand could mean that these buyers could get a bargain. However, buyers with significant access to capital are less mortgage-rate-sensitive, which could mean vacation-home buyers still face considerable competition for homes in idyllic locations,” she adds.

That dynamic helps keep prices elevated on Torch Lake, where competition remains strong for prime waterfront properties. Even with higher mortgage rates, well-capitalized buyers continue to drive demand in this coveted vacation market.

“Scarcity and pricing pressure on prime Torch frontage have helped redirect demand to more attainable
nearby towns (Alden, Bellaire, Elk Rapids, Central Lake), where buyers seek off-water access, deeded slips, or Chain-of-Lakes alternatives at lower entry points,” explains Collica.

“Local market guides explicitly position these communities as ‘more affordable’ gateway options when Torch pricing stretches budgets. County-level data shows inland medians far below Torch waterfront, but recent appreciation in surrounding submarkets aligns with spillover demand.”

As a result, the broader region is seeing rising interest and home values—proof that Torch Lake’s appeal ripples well beyond its iconic shoreline.