The 5 Most Affordable Vacation Destinations On Lake Michigan

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If you're familiar with the American Midwest at all, you know the Great Lakes offer some of the best natural scenery in the region. While they aren't exactly the same as going to the actual coast, the beaches and gentle waves of these lakes are the next best thing. Lake Michigan, in particular, is perfect for vacationing if you know where to look. As the third-largest of the Great Lakes, Lake Michigan has some incredible towns and cities along its banks, such as Chicago, Milwaukee, and Mackinac Island.

But what if you want to experience the majesty of Lake Michigan and you're on a budget? Fortunately, you can find a wide variety of smaller, more affordable vacation destinations, from the Upper Peninsula of Michigan to the tip of Indiana. In fact, Milwaukee is America's most affordable lake destination, complete with beer, beaches, and bliss.

To create this list, we chose destinations that balance attractions and amenities with affordable hotels and free or cheap activities for everyone. For example, some cities along Lake Michigan may technically be cheaper than these five, but they're not necessarily ideal "vacation destinations." Here are our picks, listed in alphabetical order.

As if being next to a Great Lake isn't enough, Charlevoix is an underrated Michigan beach town surrounded by three lakes in total. In addition to Lake Michigan, there's Round Lake that splits the town down the middle, and Lake Charlevoix, which extends deep into the "mitt" of the Wolverine State. So, if you're a big fan of water activities and adventures, Charlevoix is the perfect getaway, and it's highly affordable. Because it's something of a tourist town, there are numerous hotels and inns within the city, and many rates are around $100 or less per night. Or, if you don't mind spending a little more for accommodations, there are dozens of vacation home rentals in and around town.

First and foremost, spending time on the beach is free, and the most convenient place to do so is at Michigan Beach Park, which is right next to downtown. Alternatively, if you want more of a pristine patch of nature, head further south to Fisherman's Island State Park, which has over 6 miles of unspoiled shoreline to explore. Then, on the Lake Charlevoix side, you can enjoy the water at spots like Ferry Beach Park or Depot Beach Park.

Once you get tired of the beach (or if you visit during the colder months of the year), you can explore the vivid architecture and scenery of Charlevoix. One of the most memorable options is touring the Earl Young Mushroom Houses. These mushroom-like buildings look like they would be home to gnomes or elves, and there are about 30 of them dotted through town. Or, you can head out to Castle Farms, a massive estate built in 1918 with gardens, ponds, dragon statues, and a massive outdoor model railroad. At the time of this writing, tickets are just $10 per person.

While cities like Charlevoix are perfect for a quiet, idyllic lakeside getaway with small-town vibes, sometimes the big city is a better alternative. While Chicago is the largest city on Lake Michigan, it's not necessarily an affordable vacation destination. Fortunately, Milwaukee is just 90 minutes north, and it's known as the "culinary capital of the Midwest," thanks to its abundance of cheese, sausage, and beer.

Although Milwaukee is a relatively big city (over half a million residents), it has an abundance of affordable hotel options, many of which fall into the $100 or less per night category. Plus, you can pick your accommodations based on what you're trying to do on vacation or stay close to the Milwaukee airport for added convenience when flying in and out.

Since the city is known as a culinary capital, most of your time will likely be spent eating and drinking, but you don't have to break the bank to enjoy yourself. Milwaukee is full of cheap eats that still celebrate all of the dishes that helped put it on the map. Some fantastic, affordable restaurants include the Milwaukee Brat House for sausages, Oscar's Pub and Grill for drinks and burgers, or Peter Sciortino Bakery for fresh Italian pastries and sweets. Overall, you're sure to find something that will satisfy everyone's taste buds and your wallet, no matter where you are in the city.

Across Lake Michigan from Milwaukee (in fact, you can take a ferry between these two cities) is Muskegon, a charming waterfront city with sugar-sand beaches and vintage trolleys. Like Charlevoix, Muskegon is an underrated getaway town that borders multiple bodies of water. In this case, the city sits on the shores of Muskegon Lake. Although it doesn't have as many hotels as spots like Milwaukee or Charlevoix, the ones in town are still highly affordable, ranging around $100 per night. A few of them are even close to the water, so you can walk to the lake from your hotel for added convenience (and to save money on transportation).

Here, nature is a free (or cheap) amenity you can find from one end of the town to the other. On the Lake Michigan side, you can explore the vast, unspoiled beauty of Muskegon State Park or sit on the sands of Pere Marquette Charter Park. The latter option is also next to the Muskegon Pierhead Lighthouse and the USS Silversides Submarine Museum, both cheap attractions that offer history and scenery. On the opposite side of Muskegon Lake, there is the Muskegon Lake Nature Preserve and Heritage Landing, which is next to a different ship, the USS LST 393.

Like Milwaukee, Muskegon also has a thriving culinary scene, so you can indulge in delicious Midwestern cuisine during your vacation. Some hotspots include Fatty Lumpkin's Sandwich Shack for a snack, the Lakeside Cafe for diner food and breakfast, or the Muskegon Brewing Company if you want dinner and a beer with views of the water. The brewery is also west-facing, so it's a fantastic spot for watching the sunset after a perfect day.

Although Lake Michigan only touches the northwestern corner of Indiana, this section spans from East Chicago to Michigan City, as well as Indiana Dunes National Park. In between these cities is Portage, a beachy Midwest escape with fun shopping, diverse restaurants, and scenic trails. The city is both next to and technically part of the national park, as it encompasses the Portage Lakefront and Riverwalk Trail, which is managed by the National Park Service. This riverwalk offers some of the most stunning views of Lake Michigan, and it's the best way to see Porter Lighthouse sticking out in the middle of the water.

Although Portage is technically a lakeside town, it extends well beyond the shores of Lake Michigan, past I-90 and Highway 6 to the south. Thanks to its relatively large size and proximity to Indiana Dunes, the city also has numerous hotel options that fit even the tightest budgets.

To access the beach and the best green spaces in Portage, you'll need to pay to get into Indiana Dunes, which costs between $15 and $25 per person at the time of this writing. Alternatively, if you want free outdoor adventures, the city has a variety of parks scattered throughout. Some notable examples include Imagination Glen Park, which spans 276 acres and has a fishing area, Countryside Park, which has a massive pond splitting into North and South, and Woodland Park, which has playgrounds, access to a hiking trail, and an Oak Savanna habitat.

Since Lake Michigan borders four states (Michigan, Wisconsin, Indiana, and Illinois), it only makes sense to offer at least one affordable vacation destination from each state. While the greater Chicago metro area takes up most of the Illinois shoreline, there is an artsy city outside of Chicago with waterfront charm and top-rated golf: Waukegan. The city's proximity to such a large metropolis and the family-friendly city of Gurnee (home to Six Flags and Great Wolf Lodge) means it has some fantastic budget accommodations, although they are not next to the water.

The best place to enjoy the water is at Waukegan Beach, which has a 1-mile stretch of white sand and some of the only remaining natural dunes in the area. If you stand on the southern tip of the beach, you can also see the Waukegan Harbor Light just offshore, next to the marina. Alternatively, you can head north and visit the Illinois Beach State Park, which encompasses over 4,100 acres of unspoiled natural beauty.

As far as free and cheap attractions, Waukegan has a variety of stunning public parks and two incredible museums. The first is the Waukegan Historical Museum at Bowen Park, and the second is the African American Museum at the England Manor, which is close to downtown. If you spend some time downtown, you can also stroll past the historic Genesee Theater or check out the Waukegan Public Library. Outside the library, you'll notice a statue of Ray Bradbury, who was born in the city. There is also a park named after the author down the road, stretching across the Waukegan River.

As we mentioned, because Lake Michigan is so expansive, numerous small towns along its borders would technically qualify as the "most affordable" because they're so cheap. However, just because a hotel room or vacation home costs so little doesn't mean you'd want to visit.

So, when choosing these five cities, we went with places that were not expensive hotspots, like Chicago, but would still provide enough free or affordable entertainment for travelers. Plus, some of these cities are close to major attractions, so you can take advantage of the cheaper accommodations while still enjoying more expensive elements. Overall, these five picks should enable you to enjoy your Lake Michigan vacation without feeling like you have to sacrifice quality for affordability.