Deep Dive into Detroit Neighborhoods: Cornerstone Village

While it's true that many neighborhoods in Detroit have seen property prices soar, there are still gems like Cornerstone Village where you can find budget-friendly options in thriving communities.

In this Deep Dive, we explore Cornerstone Village, a standout neighborhood where savvy investors can uncover rental properties that attract responsible tenants without breaking the bank.

We recently toured the area to give you an authentic look at its potential, showcasing available homes and the up-and-coming areas to watch. Check out our virtual tour for a firsthand glimpse:

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With three decades of experience living, investing, and managing properties in this area, we’re confident in recommending Cornerstone Village as a top choice for rental investors. But don't just take our word for it—our analysis is backed by robust data.

In our Deep Dives, we delve into the critical factors that matter most to landlords, including:

• Sale Trends
• Rent Trends
• Current Market Listings
• Tenant Demographics
• Neighborhood Livability

We've crafted a unique scoring system that evaluates these aspects and more, providing a comprehensive Report Card for each of Detroit’s 105 neighborhoods. This equips you with the necessary insights to make informed decisions for your next buy-and-hold investment.

Check out the other Detroit neighborhoods we’ve previously covered in our Deep Dives:

Interested in an area that’s not listed here? Please let us know! We’d be happy to share our data with you, and we’re always open to suggestions on which neighborhood to cover next.

Now, let’s turn our focus to the main event: Cornerstone Village.

Overview

Nestled right at the edge of Detroit, Cornerstone Village boasts a prime location next to the highly coveted Grosse Pointe and is flanked by the sought-after areas of East English Village and Harper Woods. This strategic positioning makes it an attractive spot for investors eyeing affordable housing options near some of Detroit's most prestigious zip codes.

Source: Google Maps

Our previous Deep Dive in 2022 highlighted Cornerstone Village for its budget-friendly properties, decent tenant demographic, and its proximity to high-value neighborhoods.

Fast forward to today, and while the neighborhood's intrinsic qualities remain, the numbers have shifted significantly:

Historically known as Balduck Hill, Cornerstone Village was once heavily impacted by economic challenges but has since been on the upswing.

Its advantageous location near St. John Ascension Hospital and Grosse Pointe has spurred economic development along Mack and E Warren Ave, featuring popular establishments like Starbucks and Chipotle.

The area is also home to well-maintained public spaces such as Balduck Park and the Moross Greenway, along with reputable schools including East English Village Preparatory Academy.

This combination of location, amenities, and ongoing development is elevating Cornerstone Village's desirability, marking it as a neighborhood on the rise.

Housing Market

Let's delve into how the growing demand is reshaping the housing market in Cornerstone Village.

Sale Trends

Zillow data shows there has been an 8.2% year-over-year increase in property prices, with the average sale price now standing at $79,724. This marks a substantial rise from the figures recorded in 2022:

Want more info on specific investment opportunities in Cornerstone Village, Detroit, or Michigan? for a free consultation.

Rent Trends

In 2022, the average rent in Cornerstone Village was $952, but it has since risen by 20.2% to $1,144. This upward trend highlights the neighborhood's growing attractiveness for investors seeking profitable rental properties.

Here's a comparative look at how the market has evolved since our last Deep Dive:

Source: Niche and Zillow.com

This area offers enticing opportunities for investors due to its:

• Low cost of entry
• Strong rental cash flow
• Promising appreciation potential

However, it's crucial to select the right block, as property conditions can vary significantly within Cornerstone Village—a common characteristic of many Detroit neighborhoods. Be sure to view our video tour above to get a better sense of the area's diverse street-by-street dynamics.

Investment Opportunities in Cornerstone Village

The real estate market in Cornerstone Village is currently offering some intriguing opportunities for savvy rental investors.

As of September 2024, there are 40 properties listed for sale, predominantly priced between $60,000 and $100,000:

This price range presents an attractive entry point for those looking to capitalize on Detroit's evolving market landscape.

In contrast, the rental market shows tighter availability, with only 24 properties up for grabs, despite a robust demand from tenants.

Most rental listings are priced between $1,100 and $1,400, primarily comprising 2-3 bedroom detached single-family homes:

However, many of these properties have been on the market for over 30 days due to their need for significant refurbishment.

Refurbished homes that are move-in ready tend to attract tenants swiftly, presenting a lucrative opportunity for buy-and-hold investors who can bring properties up to standard.

Example Investment Property

If you can find a property on an up-and-coming block in Cornerstone Village, it’s easy to find affordable properties.

Let’s look at a real-life example to show you what we mean.

This property is situated on a charming residential street near Balduck Park and E Warren Ave, offering a promising investment opportunity.

Despite its modest size, the property sits on a generous lot, with a compelling rent-to-price ratio to boot.

With minimal work needed to become rent-ready, this house is essentially a turnkey rental. It has been on the market for nearly two months, suggesting that you could potentially secure it for the Zestimate price of $73,300—approximately 8.3% below the asking price.

Here's a snapshot of how this investment could pan out:

• Purchase Price: $73,300
• Rent: $1,400
• RTP Ratio: 1.9%

For those with strong negotiation skills, there might be room to lower the purchase price even further.

Area and Tenant Quality

When considering rental investments, several qualitative factors can significantly influence your decision-making process:

• Housing Stock Quality
• Tenant Quality
• Area Development
• Crime & Safety

So let’s look at each one.

At the conclusion of our analysis, we will provide a comprehensive grade for Cornerstone Village as a buy-and-hold investment area.

Housing Stock

Cornerstone Village, established in 1925, boasts a rich history reflected in its charming homes, most of which were constructed between the 1920s and the 1970s.

These older homes offer unique architectural appeal, but they often come with age-related concerns such as outdated wiring, plumbing, and potential structural issues. It's crucial for investors to consider these factors and allocate funds for necessary upgrades within their renovation budgets.

While there are numerous vacant properties priced under $50k, requiring extensive repairs, these may not be the wisest investment choice. Instead, targeting fixer-uppers on well-kept streets can be more strategic. As highlighted in our example home above, these properties are more likely to attract quality tenants due to their location and neighborhood appeal.

Cornerstone Village has a high homeownership rate of 61%, contributing to the neighborhood's overall upkeep and charm.

Streets with higher ownership often exhibit better maintenance, making them ideal for investment properties. Finding a property in these areas increases your chances of attracting responsible tenants and achieving a successful rental investment.

Tenant Stock

The cornerstone of any successful rental business lies in its tenants. So, who exactly is choosing to settle in Cornerstone Village?

In Cornerstone Village, the tenant demographic is evolving from predominantly Class C to steadily approaching Class B, although some Class D areas do persist, requiring careful selection when choosing where to invest.

But the charm of this neighborhood lies in its increasing allure for families who are on the hunt for affordable single-family homes nestled in a peaceful, lush setting.

With Grosse Pointe being one of the top residential areas in Wayne County, it often falls outside the budget for many aspiring homeowners, and East English Village presents a similar financial challenge.

Consequently, Cornerstone Village emerges as a compelling alternative, offering a balance of affordability and quality of life.

Economic Development

Cornerstone Village and Detroit are experiencing a wave of developments and investments that are transforming the landscape:

• UAW Ford Field Redevelopment: Located along Warren Ave, this project has introduced green walkways, baseball fields, basketball courts, and soccer fields, marking the area as a promising spot for rental investments.
• Mack Avenue Commercial Revitalization: The district has seen a resurgence with the arrival of car dealerships, diverse restaurants, and popular chains such as Starbucks and Staples, boosting local commerce and appeal.
• Water & Sewer System Upgrades: These improvements ensure that the infrastructure can support an influx of new residents, reinforcing the neighborhood’s capacity for growth.
• City-wide Investments in Detroit: Nearly $7 billion has been poured into projects throughout the city, including:
  • Ford’s $1 billion autonomous vehicle tech hub at Michigan Central Station, setting Detroit as a future-forward city.
• The Hudson development introducing new residential, commercial, and hotel spaces downtown, enhancing Detroit’s urban landscape.

These enhancements are driving up house prices, rents, and tenant demand in Cornerstone Village, making it an increasingly attractive area for both living and investment.

Crime and Safety

The local crime rate here aligns closely with the broader Detroit area.

On Niche.com, one resident notes, "The crime rate in my area seems to be low," while another praises it as "a very good area in Detroit's far east side overall, near Grosse Pointe, hospital, shopping."

Despite these favorable reviews, it's crucial to recognize that Cornerstone Village is a neighborhood where conditions can vary significantly from block to block.

Investment Report Card

Let's piece together the investment potential of Cornerstone Village and see how it stacks up as a rental area for landlords:

We've awarded Cornerstone Village a C+ grade. This evolving area offers a unique mix of benefits for rental investors, including:

• Low Cost Barrier to Entry: Affordable initial investment opportunities.
• Strong Rental Cash Flow: Consistent income potential from rentals.
• Decent Appreciation Gains: Potential for property value increases over time.

However, the key to success here lies in selecting the right block.

Like many parts of Detroit, areas within Cornerstone Village can differ greatly from street to street.

While properties on a Class D street might be bought for as little as $4,000, they often require significant investment to renovate. We recommend seeking out properties on Class C+ blocks, where the chance for gentrification and better long-term returns is higher.

It's not just about knowing the neighborhood; it's about understanding it block by block.

But with RTPs reaching up to 2%, choosing wisely can lead to substantial returns.

Stay tuned for our in-depth analyses of other Detroit neighborhoods. If there's a specific area you're curious about, leave a comment, and we'll make sure to explore it in a future installment.

Interested in exploring investment properties in Cornerstone Village? for a list of our available units.