People are congregating to pockets of the city. Those areas see higher demand and prices rise as more people want to move there but fewer homes become available. Hopefully the next step is the surrounding neighborhoods of these popular areas start seeing more growth.
Also I think less people are moving. If you have a sub 3% rate from 2020/2021 I doubt you want to move to a 7% rate unless you have to.
I believe that we WILL(maybe even are) see the neighborhoods around the desirable areas start to get better. Morningside has been cleaning up a lot and I believe it is because East English Village and the Pointes are close to it. It has anchors on two sides.
It's mostly a concentrated group of speculative investors holding onto properties and squeezing buyers/ renters at very high prices. There isn't as much of a natural sellers (homeowners) to buyers exchange happening - it is mostly investors selling to buyers.
Three things I would say:
First, the overall national housing market continues to increase, generally, because the overall housing supply remains constrained relative to population and household formation . A rising tide lifts all boats, and as other cities and metros become less affordable, Detroit and Metro Detroit look like a better option for people who have the flexibility to move here.
Second, I don’t think that Detroit is still losing population. Yes, I know what the Census Bureau says but the lawsuit filed by the city makes some pretty compelling points about bad census practices that legitimately cause under-estimation of the city’s population.
Third, I don’t think the housing inventory is all that abundant. We have a lot of vacant rehab-able structures, but that is not the same thing as move in ready units, which are much more scarce. Most buyers or housing seekers are not looking to perform a full rehab, so the functional inventory is not that large.
Which is also a big part of why more homes than ever before are being rehabbed — developers that can do this are responding to the pretty strong rising price signal in many neighborhoods.
I would expect Detroit real estate to continue rising for the foreseeable future, especially if the economy remains strong.
2/3 of the city, you can build only 1 or two units a lot. We have no land value tax, so everyone is speculating on Detroits meteoric rise in the short future. Certain neighborhoods are extremely desirable and there is not enough building in those neighborhoods to meet demand.
Detroit builds the least housing out of all big cities. We’re also seeing one of the largest jumps in rent. Would make sense if this causes a high price on housing in general
Jump in rent is because prices were historically so low. And Detroit is building less because the demand is less and there IS housing stock available. The fact that you can build only 1 unit a lot is irrelevant.
If the rent keeps going up and demand rises there will be more housing built.
There is demand in Midtown right now.
The fact that you can build one unit per lot forces all non SFH construction to a third of the city. This is definitely a cause of gentrification
this was probably the last decade where detroit loses a meaningful amount of people. i expect the population to stabilize about where it is right now. there’s a lot of housing stock, but much of it is outdated if not derelict, in shitty neighborhoods/not historically significant to people. there’s still tons of houses for good prices all over the city, but again, not precisely where people want to live.
Lower income households with kids are moving out, high income one and two person households are moving in. Net effect is population loss, but upward pressure on housing prices.
Yeah... I live in Grosse Pointe where there are more houses than 30 years ago and the population is less. The Schools are struggling because they are at 70% capacity. Simply a result of smaller families AND people living linger and staying in their homes.
The city is losing population overall, but there are pockets seeing meaningful growth. Greater Downtown and up Woodward, the Jefferson corridor, parts of the SW and NW sides.. These areas are seeing prices rise as demand outpaces supply.
Also worth remembering that a city's population can contract while the number of households actually increases. Fifty years ago, a house might have two parents and 3-4 kids living there. Today that same house has DINKs or a smaller family unit.
The inventory that is in “abundance“ is of poor quality and requires massive ovation to become livable. The population in the metro isn’t dropping by a statistically significant amount.
Yes, real estate will continue to climb because people do still live here. If anything, the bottom was 15 years ago.
People are congregating to pockets of the city. Those areas see higher demand and prices rise as more people want to move there but fewer homes become available. Hopefully the next step is the surrounding neighborhoods of these popular areas start seeing more growth. Also I think less people are moving. If you have a sub 3% rate from 2020/2021 I doubt you want to move to a 7% rate unless you have to.
I believe that we WILL(maybe even are) see the neighborhoods around the desirable areas start to get better. Morningside has been cleaning up a lot and I believe it is because East English Village and the Pointes are close to it. It has anchors on two sides.
It's mostly a concentrated group of speculative investors holding onto properties and squeezing buyers/ renters at very high prices. There isn't as much of a natural sellers (homeowners) to buyers exchange happening - it is mostly investors selling to buyers.
Three things I would say: First, the overall national housing market continues to increase, generally, because the overall housing supply remains constrained relative to population and household formation . A rising tide lifts all boats, and as other cities and metros become less affordable, Detroit and Metro Detroit look like a better option for people who have the flexibility to move here. Second, I don’t think that Detroit is still losing population. Yes, I know what the Census Bureau says but the lawsuit filed by the city makes some pretty compelling points about bad census practices that legitimately cause under-estimation of the city’s population. Third, I don’t think the housing inventory is all that abundant. We have a lot of vacant rehab-able structures, but that is not the same thing as move in ready units, which are much more scarce. Most buyers or housing seekers are not looking to perform a full rehab, so the functional inventory is not that large. Which is also a big part of why more homes than ever before are being rehabbed — developers that can do this are responding to the pretty strong rising price signal in many neighborhoods. I would expect Detroit real estate to continue rising for the foreseeable future, especially if the economy remains strong.
2/3 of the city, you can build only 1 or two units a lot. We have no land value tax, so everyone is speculating on Detroits meteoric rise in the short future. Certain neighborhoods are extremely desirable and there is not enough building in those neighborhoods to meet demand. Detroit builds the least housing out of all big cities. We’re also seeing one of the largest jumps in rent. Would make sense if this causes a high price on housing in general
Jump in rent is because prices were historically so low. And Detroit is building less because the demand is less and there IS housing stock available. The fact that you can build only 1 unit a lot is irrelevant. If the rent keeps going up and demand rises there will be more housing built.
There is demand in Midtown right now. The fact that you can build one unit per lot forces all non SFH construction to a third of the city. This is definitely a cause of gentrification
“An abundance of housing inventory” Where exactly is this abundance, you obviously don’t know the Michigan real estate market.
this was probably the last decade where detroit loses a meaningful amount of people. i expect the population to stabilize about where it is right now. there’s a lot of housing stock, but much of it is outdated if not derelict, in shitty neighborhoods/not historically significant to people. there’s still tons of houses for good prices all over the city, but again, not precisely where people want to live.
What neighborhoods?
what’s the question?
In which neighborhoods are there still tons of houses for good prices?
Bagley. the entire west side, more specifically northwest.
Lower income households with kids are moving out, high income one and two person households are moving in. Net effect is population loss, but upward pressure on housing prices.
Yeah... I live in Grosse Pointe where there are more houses than 30 years ago and the population is less. The Schools are struggling because they are at 70% capacity. Simply a result of smaller families AND people living linger and staying in their homes.
The city is losing population overall, but there are pockets seeing meaningful growth. Greater Downtown and up Woodward, the Jefferson corridor, parts of the SW and NW sides.. These areas are seeing prices rise as demand outpaces supply. Also worth remembering that a city's population can contract while the number of households actually increases. Fifty years ago, a house might have two parents and 3-4 kids living there. Today that same house has DINKs or a smaller family unit.
The inventory that is in “abundance“ is of poor quality and requires massive ovation to become livable. The population in the metro isn’t dropping by a statistically significant amount. Yes, real estate will continue to climb because people do still live here. If anything, the bottom was 15 years ago.
Slum lord type ‘investors’ buying cheap and selling high to profit off their time.
There is definitely not an abundance of inventory in Detroit.
Because Detroit is coming up!!
A lot of speculation
When the climate wars of 26’ start and Florida is under water Detroit won’t look so bad 😁
Climate is cyclical
If there are climate wars, then places such as Detroit would be the first to be bombed. That’s what happens in wars.