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Growth Exceeding Detroit Living Space

Posted by Mike Jordan on July 14, 2017
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It’s no secret that Detroit has been gaining popularity with Millennials over the last decade. With an ever-increasing job market, new large-scale investments, and a city-wide revitalization project well underway, Detroit has seen a drastic influx in relocations recently.

Add in a low cost of living rate and the population just keeps rising.

Between 2011 and 2016, the Detroit area added an approximate 412 apartments in the metro area annually. Despite adding 2,060 apartments over the last five years, Detroit is having a hard time keeping up with the current immigration trends.

A report issued by the National Multifamily Housing Council (NMHC) and the National Apartment Association recently reported that, with the current increasing residential trends, Detroit will need to add approximately 15,467 apartments by the year 2030.

Breaking it down to an annual rate, the city of Detroit needs to add 1,105 apartments each year in order to accommodate current market trends. That’s an additional 693 apartments every year.

The report also stated that 4.6 million additional apartments will be required nationwide in the same time period to keep up with the projected national immigration trends.
“Nationally and here in Detroit, we’re experiencing fundamental shifts in our housing dynamics, as more people are moving away from buying houses and choosing apartments instead,” said Deborah Oaks, President, Detroit Metropolitan Apartment Association. “Demand for additional apartments in the Detroit metro area is expected to be positive but erratic going forward.”

Detroit has currently been facing a city-wide renovation and rebuilding initiative as it is, having ranked as one of the top cities in the nation for a low cost of living rate compared to the area’s income average. Despite constant growth, investment, and additions, the city is still coming up short in the forecasted need for housing in the upcoming years.

 

News & Image Source: https://detroit.curbed.com/2017/6/14/15795644/metro-detroit-apartment-needs

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