Originally posted by @Travis Biziorek:
Originally posted by @Christian Hutchinson:
So that Chrysler play...those new hires with be $17ish/hr.
So lets call it $42K with shift differential, OT, incentive pay, and profit sharing.
IDK if there is a play IN Detroit for these people, for more than 1-2 units.
There are plenty of living options at that wage in Metro Detroit, particular if you pair it with another earner within the household.
Historically, people in these types of jobs/wages are not going to care about being in a "hip-neighborhood". Its going to be more "practical" bread and butter type of housing. I see moves into SCS, Warren, Roseville but not Detroit. As these people get seniority, they will move to Macomb Twp, Clinton Twp, Fraser, or Chesterfield. They will top out at $33/hr. I just don't see these factory workers choosing Detroit in any density until SFH become reasonable in price, condition, with an attached school thats decent.
People at this wage will be very sensitive to car insurance, residential city income tax, property insurance rates in Detroit. This isn't a situation of two White Collar(Grey Collar workers even)workers with very flexible schedules with a HHI of $140K saying "My bang for buck is way better in University District, compared to Novi, Troy, Shelby, etc, I'm 15 minutes from my office and I'll just pony up $11K a year to send my kids to U of D for better or similar education".
I have 6 Units in Midtown and North End. In 6 years I have gotten inquiries maybe 3 times from Poletown or Jefferson North. Frankly, people in those wages/line of work don't desire that type of housing.
My stance is that a strategy targeting plant workers making $17/h is a losing one. These jobs are getting increasingly automated away, and it's only going to get worse. I know that's not what you're doing, just making a point.
The right product will attract strong tenants. That's been my experience. My most recent tenant is actually moving out of her Midtown apartment for my SFH house. Just her. She wants to save more money, and the $200 price difference is meaningful. She makes ~$75k/year working for an ad agency and has a credit score in the high 700's.
Another property I recently rented to a young couple that's moving here from out of state. He's just started at Quicken Loans as a mortgage banker and she works in the music industry. They don't want to pay the high cost to live downtown, but they still want a decent commute.
I think we are saying the same thing. Two of the people you mentioned are a part of the 'creative-class'. They do not punch a clock. The 3rd person is 'gray-collar'. Again doesn't punch a clock, clocks lots of hours, but plenty of MB at QL come and go as they wish while working 70 hours a week, lol.
Factory workers making $17/hr versus a Operations Specialist at the Rock Connections making $17/hr are two very different people. One person, gets off of work in a casual polo/dress short, slacks and is pretty clean and has not broke a sweat. They can scurry over to Central Kitchen with co-workers once 1-2 times a week, blend in for 90 minutes and go home.
The other person wore work boots, maybe a t-shirt or sweatshirt, got some liquid/fluid on themselves. They wear the same 5-8 shirts and they are slightly soiled dirty. They wear jeans that again have stains. They were on their feet 9 hours and are going to be tired, and maybe did sweat just a little just because they were moving all day. If there is a little place next to plant with all the other workers and everyone is a little dirty fine, but they will hesitate going into a "nicer" place, just for the fact they are a little dirty and will look out of place. So they will most likely look to go home, shower, then head somewhere.
So then it turns into "where" they go home too. There is no value for them being near their job, because its a factory, who wants to live by that? Throw in the economic considerations and I see these people leaving Detroit. So you get the EEV, Morningside, etc they is no advantage for them being in those neighborhoods financially, and at their pricepoint the extra costs of $200/mo for a car insurance versus $100 the $30 vs $60 per check for Detroit income tax, plus the general quality of life issues
Detroit's biggest challenge the next 30 years and the last 30 years is providing neighborhoods and services for households making between $40-$90K per year. Because of things we can't discuss in this forum that are politcal, social, etc its just easier for these households to head into inner-ring suburbs, you can't get around the math.
Remember they will be at that plant 10-30 years, with a very defined salary schedule, the people at Rock Connections will be there 6-36 Months, and their income is very unpredictable.
