See It In Action (Part 2):Why Buying Property in the City of Detroit

Source: Photo by Alex Brisbey on Unsplash

When people think of investing in Detroit properties, they worry about its reputation—particularly the crime rates. However, if you know how to navigate these things strategically, you can reap substantial rewards from the City of Detroit. In fact, it can be significantly higher than other US markets.

So, what's changed in Detroit lately to make it such a great investment opportunity?

Well, here are 5 reasons to get you started.

#1 - Property prices are extremely low and increasing rapidly

Properties in the City of Detroit are incredibly affordable. You can purchase homes here for less than $100k on the regular. These aren't "cheap" homes either, as many of them are "hidden gems" that you can bring up to good livability standards without depleting your funds.

You don't have to spend a fortune for a home in New York, San Francisco, or Los Angeles to get good returns on your investment. Instead, you can find some serious bang for your buck in the City of Detroit.

Moreover, property prices are rising, where the average price skyrocketed by 30% from 2021 to 2022, marking its fifth consecutive year of growth. Investing in the City of Detroit means reaping significant equity gains shortly without spending too much for it today.

#2 - Serious revitalization is currently happening

It's no secret that the City of Detroit has seen better days. However, many people and organizations are working hard to change that.

From new businesses popping up downtown to large-scale developments, there's a lot of growth and revitalization happening in Motor City. We’re also seeing an influx of young professionals and entrepreneurs move here for lower costs of living and higher growth opportunities, further speeding up the development of new businesses and restaurants.

As the city continues to experience a much-needed boost in its economy and population, property values will only go up—making it a great time to invest and purchase a home.

#3 - Enormous rental yields and possible price increases

Even though the average rent in the City of Detroit is lower than in other rental market hotspots, the amount is more than enough to cover your initial investment expense. The city's rent-to-price ratio is at a favorable 1.0% to 1.5% across the area, and that’s key in netting a positive cash flow.

There is also room for the city's rental yields to increase soon. Experts forecast that the increase will be somewhere between 3% to 5% in the next five years.

#4 - Declining crime rates for increased safety

Contrary to popular belief, the crime rates in the City of Detroit are declining. While major cities like Chicago and New York reported surging crime in 2022, Motor City quietly reported double-digit drops in violent crime for the first four months of the year.

While it's still important to be aware of your surroundings and take precautions, the city is safer than it used to be. This improved safety will only lead to more people moving into the city, further driving the property values.

#5 - Blight removal for a better quality of life

The City of Detroit experienced one of the most significant blight situations in the nation. However, it has also completed many blight removal projects and continues to do so today. Here's a glimpse of what's happening with the city's blight problem:

• - City Council appropriated for eliminating commercial and industrial blight in the City of Detroit via demolition, remediation, and land reuse.
• - Thousands of blighted Detroit properties were in the last two years, reducing overall blight and increasing the city's investment potential.
• - Over have been demolished since 2014. The City of Detroit is now two-thirds done with removing and rehabilitating its blighted housing stock.
• - The city is to improve the quality of surrounding neighborhoods, so blighted areas aren't negatively contributing to the area's livability.

These are just a few examples of how the City of Detroit is actively dealing with its blight problem. Major Mike Duggan even plans to erase blight from the city in four years. As the city continues to clear out blight, quality of life will improve—attracting even more new residents and businesses.

Reaping the Famed Fortunes

While the City of Detroit may not be at the top of its game for quite some time, there's no doubt that it's on the right track now and has a lot of growth potential. With all the revitalization projects, declining crime rates, and increased quality of life, now is the time to invest in Detroit properties.

Whether a rental property for investment purposes or a primarily residential home for your family, the City of Detroit offers excellent opportunities for wise purchasing decisions. T

Logical Property Management has been helping Metro Detroit landlords and investors manage their rental properties for more than two decades. today to make the most out of your investment.