What Detroit Neighborhoods are Leading the Recovery | Where to Invest
Since Detroit was allowed to file bankruptcy, there has been a lot of attention from the country on the city’s future and how it will impact the residential real estate market in Detroit.
As a local to Detroit and a lifetime Michigan native, I thought I would share what has been happening in the city and how it is impacting residential real estate. The biggest impact on the city has been Dan Gilbert’s focus on buying up Detroit based real estate and relocating his various companies to the city. This has also drawn other companies to relocate to the city bringing even more young people to the city.
The recent increase in companies moving to the city has caused an incredible rise in demand for residential units. In fact, Occupancy levels in the city are close to 100% and according to Market Watch residential prices have increase over 30% in the past 12 months! Market Watch even ranked us the 7th fastest growing city in the country. We’ve even seen studies that highlight there is demand for another 10,000 residential units over the next 5 years in the city of Detroit. Things are so strong in the rental markets that higher end apartment buildings are getting close to $2 per foot, which is significantly higher than the suburbs.
As a real estate investor, this brings great opportunity for people looking to renovate and flip houses. To give you some guidance as to what Detroit markets will rebound the quickest during this recovery, we thought we would highlight a summary of the hottest areas:
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