All Forum Posts by: Megan McClung

in detroit, our condo resale market is def a buyer's market. we're seeing "price-sticking" in sellers, where they basically are stuck on the prices they paid for their condos in 2020-2022. so these sellers are less willing to cut prices and negotiate with buyers. therefore, our condo resale market has long DOM and has very much slowed as buyers have less buying power. many owners are renting their condos instead of selling rn.

however, on the new construction front (condo or sfh), those go very fast. still a seller's market for new builds. probably due to limited supply, so demand eats up every phase of development when they hit the market.

there's demand for sub-$200k homes (lots of fha buyers), and we see closing costs concessions for buyers added on top of the list price, rather than eating into seller's net. so still a seller's market for that asset class.

and it's a buyer's market for value-add, but i feel like prices were higher in q4 than i was expecting for value add sfh. so for sfh, our prices are still appreciating. we also had our first population growth in 2024 since detroit's bankruptcy, so that is helping sustain demand in our value-add and sfh market.

in detroit, our condo resale market is def a buyer's market. we're seeing "price-sticking" in sellers, where they basically are stuck on the prices they paid for their condos in 2020-2022. so these sellers are less willing to cut prices and negotiate with buyers. therefore, our condo resale market has long DOM and has very much slowed as buyers have less buying power. many owners are renting their condos instead of selling rn.

however, on the new construction front (condo or sfh), those go very fast. still a seller's market for new builds. probably due to limited supply, so demand eats up every phase of development when they hit the market.

there's demand for sub-$200k homes (lots of fha buyers), and we see closing costs concessions for buyers added on top of the list price, rather than eating into seller's net. so still a seller's market for that asset class.

and it's a buyer's market for value-add, but i feel like prices were higher in q4 than i was expecting for value add sfh. so for sfh, our prices are still appreciating. we also had our first population growth in 2024 since detroit's bankruptcy, so that is helping sustain demand in our value-add and sfh market.

@Chanel Snerling for what it's worth there's a killer R2 lot in morningside (it's like the only vacant lot on the block). $6k asking price. it's R2, so by right you can build a duplex (you get your permits from BSEED like you would a rehab, no additional site plan approval required). and the lot itself has 40 feet of frontage and is over 4,000 sqft, so it meets the min lot size requirements for building a duplex. 

i've heard that building costs are abt $160/sqft (i'm not a builder though, so def do your own due diligence on typical build costs in detroit). but i just did an analysis yesterday of all new build sales in last 12 months, and the sales sold for $227-$418/sqft (so that's good at least on the appraisal front). 

also for people who want to build on lots that we have in midtown, we send them to a bank in town that does residential construction loans for 5% down (i think the program makes you partner with a builder/gc who has experience though). i have more deets from the lender, if you're interested in that type of financing.

there's also some super interesting duplexes in 48224 (east side). like moross-morang has some that i saw yesterday that i liked. and we could even figure a value add deal, if you want to BRRR.

as far as zoning questions, if you ever have any, i'm super familiar with the zoning code (i'm an attorney/realtor, so reading and outlining the zoning code is what i did in my free time for a few months last year...bc it made me happy? lol). anyways, happy to be a resource for you if i can be!

these are the neighborhoods where developers broke ground on new housing stock last year...in case it helps you narrow where you should be looking to build. i think you mentioned islandview/east village already. those are on this map (my fave areas).

i can't take my eyes off islandview and east village - so many new builds in these up-and-coming areas. plus land is cheapest there (of the new build neighborhoods).

these are the 10ish neighborhoods in detroit where developers are building new housing stock.

30+ new build sales in last 12 months: half sold for $227-300 per sqft. half sold for $301-418 per sqft.

build to rent: new builds rent for $2.00-2.57 per sqft.

in our R2 zoning, you can build a duplex by right, and you can build up to 8 units with site plan approval (there are minimums, likes frontage and lot square footage requirements, but there's a lot of potential with our zoning code). 

what do you think abt these prices per sqft? does this leave room for build-to-rent strategy in detroit?

these are the 10ish neighborhoods in detroit where developers are building new housing stock.

30+ new build sales in last 12 months: half sold for $227-300 per sqft. half sold for $301-418 per sqft.

build to rent: new builds rent for $2.00-2.57 per sqft.

my favorite neighborhood for new builds is islandview. it's on the east side, by the villages (hip historic area) and east village (another new build hub). plus land is cheapest there (of the new build neighborhoods).

what do you think abt these prices per sqft? does this leave room for build-to-rent strategy in detroit? 

hi travis! i love this perspective. thank you. i also love north of 94 too. i live at mack and warren so yorkshire woods and moross-morang are just a stone's throw away. i love the size of the houses in 48224. but i agree with the price increase. i feel like in the fourth quarter last year, i started noticing things were closing a solid $3-8k more than i thought they would. have you found your sweet spot area-wise? what other areas are performing for you? genuinely interested in learning from your experience!

that's actually really cool. yes i'd love to chat! 

Ever wonder where to flip or BRRR in Detroit?

An easy hack is sticking to "Traditional Main Street Overlay Areas" designated by the Detroit Zoning Code.

The orange areas are original overlay areas (think Midtown, Corktown, Bagley).

The purple areas are the new overlay areas. They are up-and-coming areas like Morningside, East English Village, Cornerstone Village, and Moross-Morang.

My favorite purple area is 48224 (E Warren). The architecture and investment from the City makes this an ideal area to invest.

Detroit is 140 square miles, but if you stick to the overlay areas, that's where the City is investing, where developers are building, and where most redevelopment is happening.

Ever wonder where to flip in Detroit?

An easy hack is sticking to "Traditional Main Street Overlay Areas" designated by the Detroit Zoning Code.

The orange areas are original overlay areas (think Midtown, Corktown, Bagley).

The purple areas are the new overlay areas. They are up-and-coming areas like Morningside, East English Village, Cornerstone Village, and Moross-Morang.

My favorite purple area is 48224 (E Warren). The architecture and investment from the City makes this an ideal area to invest.

Detroit is 140 square miles, but if you stick to the overlay areas, that's where the City is investing, where developers are building, and where most redevelopment is happening.