Property investors are constantly looking for cities on the rise. Those with the foresight to recognize Brooklyn as a premium destination are now reaping the benefits and the same can be said for Detroit. In a recent story released by The Detroit News, it was announced that May of this year marked an eight-year high for the median sales price of Detroit homes. At $165,000, an eight percent jump was achieved from the previous year. What investors are now asking is have we reached a peak? Or is Detroit property still worth the investment? Let’s take a look at why the value of Detroit property looks to be rising steadily.
Neighborhoods Attracting Youth
Young people are flocking to Detroit. The resiliency of the city in surviving and rebounding from the housing crisis is to be commended, and it’s finally paying off. The historic districts of Detroit are becoming hot spots for first time home buyers as the Detroit economy has slowly turned and job growth is on the rise. The demand for properties has outweighed the demand for sellers, which has led to great competition. As this continues, most market analyzers see it continuing into the new year and beyond.
New York is Too Expensive
The same things that attracted some of the most creative and innovative youth in America to New York decades ago are now attracting younger adults to Detroit. The city on the rise is able to accommodate lower budgets, which is essential to bringing in younger people who will make Detroit home for generations to come. New York is suffering from the fact that the younger generations, who have now aged and made money, have driven up the cost of living – making New York un-affordable for younger generations.
Investing in Detroit Brings Tax Incentives
The New Market Tax Credit is in effect for many investment properties. Those looking into investing in Detroit can receive tax credits of nearly 40% in certain areas. These incentives are mainly for larger players in the investment space, but those with the capital to invest millions are surely to take advantage of incentives offered in Detroit properties. Business owners can find phenomenal properties that give them the space to grow that they simply couldn’t find in other U.S. cities.