Detroit real estate market is booming. This is largely due to the recent major developments introduced in the city. Recent reports show that Detroit’s median home value has increased significantly by 40% since 2017. Both Zillow and Trulia, on the other hand, revealed a 12% increase in home value over the past year. Zillow predicted a 5.4% increase for the next year.
Investing in Detroit real estate today will provide investors a range of homes at a cheaper price and have them rented out for regular cash flow. Detroit is still affordable as compared to other big cities. Affordable housing is ranked as the top reasons in employees deciding to move, with jobs availability coming in second. Many residents who moved out from the city for better opportunities are coming back now and restoring their homes to take advantage of the rising rental rates.Construction is booming in Detroit. Majority of which is in the Detroit housing market, like renovations, rebuilding, restoration, etc.
Detroit real estate is relatively an affordable market to invest in on real estate as compared to the other major cities in the U.S. The city is home to many Fortune 500 companies which is directly proportional to the city’s economic and employment development. To name a few: Quicken Loans, General Motors, Little Caesars, Ally Financial, Compuware, Shinola, American Axle, Blue Cross Blue Shield of Michigan, DTE Energy, Lowe Campbell Ewald, and Rossetti Architects.
Many older residents are moving back in and businesses are bringing job opportunities for the city. As more and more businesses are attracted to the city, more jobs will be created and the demand in homes will go higher. Detroit is also very attractive to young entrepreneurs who looks for affordable properties in growing markets.
Detroit is home to several institutions of higher learning including Wayne State University, a national research university with medical and law schools in the Midtown area offering hundreds of academic degrees and programs. The University of Detroit Mercy, located in Northwest Detroit in the University District offers more than a hundred academic degrees and programs of study including business, dentistry, law, engineering, architecture, nursing and allied health professions. The University of Detroit Mercy School of Law is located Downtown across from the Renaissance Center.
Within the city of Detroit, there are over a dozen major hospitals which include the Detroit Medical Center (DMC), Henry Ford Health System, St. John Health System, and the John D. Dingell VA Medical Center. DMC is the largest private employer in the City of Detroit. The center is staffed by physicians from the Wayne State University School of Medicine, the largest single-campus medical school in the United States, and the United States’ fourth largest medical school overall. In 2011, Detroit Medical Center and Henry Ford Health System substantially increased investments in medical research facilities and hospitals in the city’s Midtown and New Center.
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Considering all aspects that drive Detroit’s housing market, experts are expecting that this is going to stay upwards for a long time. Investors are being encouraged to consider this market for investing in both commercial and residential properties. However, it is also important that investors quickly make up their minds since properties in Detroit are being sold or taken for rent in short spans of time.