Deep Dive into Metro Detroit Cities: Garden City
As a real estate investor, you’ve probably already encountered properties in Metro Detroit.
That’s no surprise, especially when the tri-country area of Macomb, Oakland, and Wayne offers numerous lucrative opportunities with an affordable housing stock. However, despite its popularity, the location still confuses even the most experienced investor. The market is overwhelmingly complex and large, with 185 cities and 290 neighborhoods, making it difficult to know and locate good deals.
To help you sift through this profitable area, we provide expert guidance in real estate investing with our two decades of experience operating as a local property management company in Metro Detroit.
We’re writing this ultimate guide to investing in rental properties, specifically in Garden City, a Metro Detroit city that’s a stone's throw away from the buzzing City of Detroit.
Here, you’ll find crucial investment factors, evaluations, and more to help you maximize your investment. We focus on the featured area’s strengths, weaknesses, and other information that can help contribute to your success (e.g., property management type required and expected return on investment).
Source: Google Maps.Garden City
Garden City is a city in Wayne County, Michigan. Its population is roughly 27,692 in a total area of 5.87 square miles (15.20 km²), resulting in a population density of around 4,717.54 per square mile (1,821,84/km²).
The city is a relatively built-out urban area of Metropolitan Detroit, located in western Wayne County and approximately 10 miles west of the City of Detroit. Through the center of Garden City is the M-153 or the Ford Road that runs east-west.
Garden City isn’t a Ring City, as we call it, because it’s not located directly on the borders of the City of Detroit. Nonetheless, it’s close enough to offer similar real estates opportunities, such as high rental demand and affordable properties. So, you won’t have to deal with many of the typical investment risks associated with the City of Detroit in Garden City.
Here’s a map to see where Garden City is located:
Source: Georgetown Public Policy Review.And if the map isn’t clear enough, here’s a list of all Metro Detroit cities for your review. The ones highlighted in green are Ring Cities (best spots for rental properties), while those with hyperlinks take you to other Deep Dives we’ve published before:
Garden City in a Nutshell
Located just 10 miles west of Detroit, Garden City is in the perfect location, close to the big city while retaining its unique neighborhood lifestyle.
The history of Garden City began in October 1835 when Andrew Jackson transferred 160 acres of property to John Lathers. The area is then patterned to the concept of a “Garden City,” which was popular in England in the 19th century. The Garden City model meant dividing the land into smaller plots, about 1 acre each, allowing families to grow their fruits and vegetables. Fast forward to June 1927, when Garden City became a village. Six years later, it flourished and became a full-fledged city.
When it comes to historic establishments in Garden City, the city is where the first-ever Kmart store opened in 1962. It’s also home to the first Little Caesars Joint and the very first dine-in McDonald’s in Michigan. Not only that, the honeymoon cottage of Henry Ford and his wife was moved to Garden City from Dearborn in 1952.
Today, Garden City is a bustling city with diverse workers working in various industries, including manufacturing, healthcare, retail, accommodation, and transportation.
The city has a lot to offer its residents as they have community facilities catering to families and a wide range of age groups. For example, the Garden City Garden Club provides residents with courses and activities related to landscaping and gardening. They also have the Garden City Miniature Golf and Garden City Skate Plaza for families and friends to enjoy.
Garden City is a place that has a great combination of suburban living and economic opportunities that make it appealing and an excellent choice for rental property investors. Nonetheless, even with many activities to entertain people and businesses to support, the question is if Garden City is a good place to invest in rental properties today. Let’s take a closer look.
Rent & Rent-To-Price Ratio (The 1% Rule)
According to Niche, Garden City’s average rent across property types is $894. Broken down into specific bedroom sizes, we come up with the following chart by Best Places:
Source: Best Places.As we can see, Garden City generally charges slightly higher than its more significant areas of Metro Detroit and Michigan, although it’s still lower than the nationwide average.
Let’s compare the numbers to actual Zillow listings. Unfortunately, there aren’t a lot of listings to evaluate. But based on what is available, it seems like the average rent for a three-bedroom property matches the data by Best Places.
Source: Zillow.Using the information above, let’s see if Garden City’s rent-to-price ratio meets the industry standard for generating good cash flow. The 1% rule indicates that a property’s monthly rental should be equal to or higher than 1% of the total purchase price, including the cost of necessary repairs.
To make it more accurate, we’ll use the following Zillow listing as an example:
A recently remodeled three-bedroom property along Helen Steet, Garden City. With a rent estimate of $1,364 and a purchase price of $200,000, the resulting ratio is 0.7%—just a bit short of the usual 1% ratio of Ring City properties.
Source: Zillow.House Value and Appreciation
Niche reports that the current average property value in Garden City is $131,300. However, this figure may be understated because Zillow tells us that the values are around $186,958, indicating a 0.9% increase over the past 12 months. The difference, perhaps, is because Zillow adjusts this value seasonally and only includes mid-priced properties.
Source: Zillow.The numbers don’t lie: Redfin shows that Garden City properties are “Somewhat Competitive” based on its Compete Score, where average properties get multiple offers and sell 3% above the list price and hot homes for as high as 8% above the list price.
Source: Redfin.According to NeighborhoodScout, the most common property type in Garden City is single-family homes, taking up 91.3% of all properties in the city. Next are apartment complexes, which take up 7.7%. The rest are a mix of townhomes (0.5%), small apartment buildings (0.5%), and mobile homes (0.1%).
You can see the spread in the map of current for-sale Zillow listings in Garden City below:
Source: Zillow.The properties in Garden City are among those that experienced some of the highest appreciation rates in the nation, appreciating 146.94% over the past decade, with an average annual property appreciation rate of 9.42%. The city certainly sealed its spot in the top 10% nationally for real estate appreciation. Here’s a heat map from Neighborhood Scouts to help you know where to invest for long-term equity gains:
Source: NeighborhoodScout.Quality of Tenants, Properties, and Living
Investing in Garden City demands your careful attention to these essential aspects:
- The quality of tenants
- The state of the property
- The appeal of the neighborhood
These three pivotal factors collectively shape the profile of tenants you’ll be handling, the scope of property upkeep you’ll deal with, and the overall desirability of the location you’ll put your money in.
Average Property Class and Condition: B+
Average property age: 61 years
Bestplaces reports that most Garden City properties were built between 1950 and 1959. The average property age is 61 years, 11 years above what our industry considers the threshold for “old homes” or aged properties. Garden City certainly has older homes compared to other nearby cities.
Source: Best PlacesWhile it’s true that you’ll most likely find older properties in Garden City, it isn’t all that bad. As an investor, you’ll just have to prepare yourself to deal with the common issues that come with aged properties. Here’s a simple list of the usual problems that you’ll have to double-check before purchasing a property:
- - Foundational issues
- - Hazardous building materials (e.g., lead-based paint)
- - Deteriorating roof and structures
- - Underpowered electrical systems
- - Plumbing problems, like pipes that need to be replaced
Take your time inspecting and budgeting for possible renovations to bring the property up to rental standards without breaking the bank and create an excellent investment opportunity within Garden City’s older housing stock.
Quality of Life in the Neighborhood: A
When a neighborhood has a good quality of life, it naturally leads to an increased influx of residents and, no surprises here, a higher demand for rental properties. So, before delving into Garden City, you must ensure that the area can potentially entice quality tenants who are committed to honoring lease agreements and dedicated to upkeeping the property. These two factors significantly influence your returns and bolster your bottom-line profits.
Local Economy
Garden City finds itself situated within a unique economic context. A mix of small businesses, service industries, and retail establishments characterizes its local economy. Historically, the city has been impacted by the automotive industry’s fluctuations, given its proximity to the Motor City, but it has also striven to diversify its economic landscape.
The community’s economic health has been influenced by factors such as the broader economic trends in the Detroit area, including the automotive sector’s evolution, which has seen shifts towards electric and autonomous technologies. Additionally, Garden City’s location near major transportation routes has contributed to its attractiveness for businesses requiring logistical convenience.
The city has been home to local shops, restaurants, and services catering to its residents’ needs. It also hosts one of the best hospitals in Metro Detroit, the Garden City Hospital, a teaching hospital, and the community’s largest employer—also recognized among the “100 Top Hospitals” by Merative.
On top of that, the local government has been playing a crucial role in maintaining the attractiveness of Garden City to new residents and investors. Here are some of the organizations and plans that support the growth of companies, businesses, and people in the city to ensure Garden City remains attractive to investors:
- Garden City Downtown Development Authority (DDA): The primary purpose of this group is to enhance the quality of life of Garden City residents by redistributing current taxes to the local community by making the city a more attractive area for businesses, people, and workers.
- Parks and Recreation 5-Year Master Plan: This is Garden City’s plan to discuss and strategize recreational programs and events to encourage the citizens to become more active and be closer to nature.
- Garden City Public Schools: This group consists of teams conducting placement decisions of students to programs and services that best suit their capabilities to help the youth achieve more and become better citizens.
- Garden City Business Alliance: An organization that aims to promote and increase the exposure of local businesses and communities.
- Plan 2040: Garden City, 2015 Master Plan: This master plan was adopted in 2015. It included comprehensive steps to maximize the City’s development pattern and amenities to make it more attractive to new residents and business owners. It is a long-term plan that aims to improve the city’s economy by examining past trends and making projections for the next 5 to 20 years.
All these plans and organizations boost Garden City’s economy, making it an ideal area for investing in rental properties. So, right now is the perfect time for you to purchase properties in Garden City while the prices are still relatively low.
School Rankings
If you’re looking to rent your property to family tenants, investing in an area with great schools is wise. Good for you, several quality schools serve Garden City. GreatSchools notes the following goods:
- - Farmington 5-6 Campus
- - Douglas Elementary 3-4 Campus
- - Tipton Academy 4-7
- - Garden City Middle School
- - Garden City High School
There are more options for elementary and high schools in Garden Park, so we suggest you aim for properties that families with young kids would dig. Think about it: Families looking to rent will likely be stoked about having great and quality schools close to the property you’re putting up for grabs.
Crime and Safety
We’ll not sugarcoat about it—Garden City isn’t the safest place to live. But, the city’s crime rate is actually 35% lower than Michigan’s average. And in terms of property crimes, Garden City is 4.77% lower (1 in 111) than Michigan (1 in 72). In fact, NeighborhoodScout shows that certain areas in Garden City are considered “safe”:
Source: NeighborhoodScout.Garden City is part of the crazy, diverse Metro Detroit area, where the crime rates can drastically change from one block to another. That’s why, as an investor, it’s vital to prioritize properties in safe areas but still consider the fact that safety varies depending on each block, subarea, and neighborhood. You might find a property in a perfectly safe area just a stone’s throw away from another area deemed “unsafe” by other criteria.
Livability
As per Niche’s lists, Garden City has been recognized as part of the Most Diverse Suburbs and Suburbs with the Lowest Cost of Living in Michigan. The city is ideal for young professionals or have white-collar occupations and families:
Garden City received a Livability Score of 81/100 from Areavibes. The main factors that drove this score include the city’s excellent commute, housing, amenities, and cost of living, where Areavibes gave Garden City high grades based on multiple data points.
Here’s a breakdown of the cost of living in Garden City, according to Best Places:
Source: Best Places.Tenant Class and Demographics: B+
Next is evaluating the potential tenant pool you’ll have in Garden City. The importance of knowing the type of tenants in the city is for you to see how possible it is to secure renters who’ll help retain your property’s value and pay monthly rent on time—allowing you to boost your profits and returns.
We’ve compiled the information on the factors that contribute the most to the tenant pool class and demographics from Best Places. See below:
- Income: The average household income of Garden City residents is higher than that of Michigan, Metro Detroit, and the nation. However, they’re on the lower spectrum when it comes to income per capita. Based on this, you can potentially charge higher rents in Garden City but have to ensure that your tenants have a stable income coming in monthly:
- Unemployment: The unemployment rate in Garden City is lower than the average of Metro Detroit, Michigan, and the nation. Moreover, numbers indicate that future job growth in Allen Park will be higher, providing tenants with greater chances to secure well-paying jobs:
- Education: When it comes to educational attainment, the majority of Garden City residents are high school graduates, with a similar percentage with Metro Detroit and a percent higher than Michigan. However, fewer of them have completed a 4-year degree. But you don’t have to worry much about these figures because high school diploma holders can already secure one of the many jobs in Garden City.
- Diversity: Niche provides us with a breakdown of the racial diversity in Garden City:
Based on our information, the tenant pool you’ll have in Garden City will be full of well-earning residents. Still, you can’t be too comfortable and ensure your due diligence by conducting thorough tenant screenings before accepting them as tenants in any of your properties. Doing so helps ensure you’re only working tenants with stable jobs and high incomes that can support your cash flow streams and not disrupt them
Source: Google Maps.Overall Score: A-
After going through the nitty-gritty information about Garden City and combining it with our vast experience in the Metro Detroit space, we gave Garden City an overall score of A-. The significant factors that contributed to this grade include the following:
- Garden City properties have a decent rent-to-price ratio, which means you can find properties at reasonable prices against its estimated monthly rental price. You can expand your portfolio in this area and have a good cash flow, just as long as you choose and invest in properties closest to the 1% rent-to-price ratio standard.
- Garden City properties have been greatly appreciated over the past decade and continue to do so in recent quarters. With this, you can gain equity on top of cash flow.
- Garden City provides an excellent quality of life, with a booming local economy, schools ranking well, crime and safety not much of an issue, and an overall sound livability ideal for young professionals and families. The area is undoubtedly true to its name, where it can attract residents looking for greener pastures to enjoy and settle down in.
For more accurate information about the city, take the time to tour around Garden City to witness the investment opportunities it offers. We’re sure you’ll be surprised by how many properties offer an outstanding balance of cash flow and equity gains, opening more chances for you to reap immediate and long-term profits.
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Do you need more information about Metro Detroit cities and neighborhoods?
Our series doesn’t end here. We’re pumping out these reports until we’ve covered every nook and cranny of Metro Detroit and the City of Detroit, so you know exactly where to invest in this real estate hotspot.
If you have a specific area you want us to cover, drop a comment below! We’ll prioritize your request as much as we can. And if you need more guidance, get in touch with me directly. My inbox is always open to help aspiring real estate investors looking to win big.
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