Detroit has been on the upswing in recent years, earning itself quite a reputation across the real estate investment industry. Although the city hit a low during the years following the financial crisis of the early 2000s, the Motor City has worked hard to reinvent itself—bringing new light, and investors, to the area.
As the city has been instituting city-wide rejuvenation projects, the Detroit real estate market has been heating up as every new investment being funneled into the Motor City increases job availability, strengthens the economy, and boosts property values.
Currently, Detroit is an investor’s market.
In August of 2017, Detroit placed fifth on Realtor.com’s Market Hotness Index, a report which measures the health of real estate markets in over 300 of the county’s largest urbanized areas. Other cities joining the top five rankings included Vallejo, San Jose, San Francisco, and Stockton.
The job market of Detroit has also been making headlines, as Detroit is currently competing to secure two major conquests—one, to be the future home of Amazon’s HQ2, and two, to be the next city chosen to host a Major League Soccer franchise team. These two bids alone could add thousands of jobs to the already-blossoming Detroit marketplace, which would create an influx of newcomers to the city in a short period of time. Such an incursion of migrants would create a surge in rental demand, making anyone holding property in the Detroit Metro area in the lime light.
What’s Next?
Property values in the Detroit real estate market are currently well below the national average, however, they are showing drastic appreciation quickly. Due to the currently bottomed out prices of the properties available on the market, investors are able to snatch up high-value property for low cost, making their intended ROI rate an incredible figure.
As Detroit continues to blossom, property values will rise. An increase in property values and sales prices will, in turn, dictate a rise in rental rates. For those who opted to invest in the early stages of Detroit’s revitalization, this equates to a gold mine.
Strategy Properties is comprised of expert real estate professionals who have built their roots in the Motor City. Having been in the area from the get-go, we are able to offer you experience, familiarity, and contacts that will help ensure you have a successful turnkey real estate investment. Let Strategy Properties facilitate your next investment—and get into Detroit while the market is hot!
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