Where to Invest in Detroit Real Estate
When first looking to invest in the Detroit Metro area, it can be quite daunting for those unfamiliar with the area. The city is a beast, running approximately 142.9 square miles and containing 105 neighborhoods. Neighborhood selection is important—often making or breaking your investment—so sorting through the vast number is quite a task on its own.
Research is vital when investing in rental properties. Finding areas with the best schools and amenities that present a high rental demand is important. Avoiding excess costs, such as high homeowner’s fees, will help keep your rental costs lower and thus attract more tenants. Other important factors include local demographics, proximity to shopping and services, and average crime rates and these all play a part in how your investment will fare in the future.
Despite the immense quantity of neighborhoods in Detroit, there is a handful that has really shown promise for investors over the past year. While this is not to say you can’t find legitimate, potential investments in other neighborhoods, the selection on this list are proven assets for investors across the board.
A sturdy neighborhood, the 2.5 square mile area contains mostly stylish brick homes and currently boasts an impressive 82% homeownership rate. Purchasing in the neighborhood comes with some hefty incentives, too. A 15 year property tax reduction is available for new homeowners, making this a popular choice in the market.
Corktown boasts the title of Detroit’s oldest ongoing neighborhood. The historic area is now home to some of the hippest restaurants, bakeries, cafes, wine shops, and distilleries in the Motor City. It is a popular location on travel sites such as Airbnb and has a unique range of buildings transitioned into housing, drawing in a younger, trendier crowd.
New Center Area/Midtown
These two areas, both connected solidly, are the it places to purchase property in terms of long-term investments. Currently boasting a handful of both residential and commercial buildings for sale, these areas are great for rental purposes as they are located snuggly in the major downtown area. Several local projects, such as the $500 million expansion by the Henry Ford Health Clinic and the new Pistons practice facility, in addition to the upcoming QLine trolley, have put these areas on the map in terms of rental demand and popularity.
This list is just a taste of the exciting, investment-worthy neighborhoods in the Detroit Metro area. Before investing your time and money in the Detroit real estate market, it is important to do your own research and consult with expert professionals in the area to find the neighborhood that is right for you.