2019-2020 Housing Market Overview
Detroit Real Estate Market 2020
On this page you'll learn about the Detroit, MI real estate market for 2019 and 2020.
Detroit Real Estate Market Overview
Metro population:
Median household income:
Unemployment rate:
Median home price*:
Median monthly rent*:
Interested in investing in the Detroit real estate market in 2019 or 2020? On this page you’ll learn about housing market trends and statistics to help you make that decision.
Please Note: This page is current as of January 2019. While most of the data points presented on this page won’t have changed considerably in the last year, we always want to make sure our content is as current and accurate as we possibly can. This page will be officially updated for 2020 by early January, so check back to get the latest updates!
If you’d like to be notified when this page is fully update for 2020, please send an email to KathyFettke@realwealthnetwork.com with the subject line “Detroit Market Update 2020” and we’ll make sure to notify you! 🙂
About Detroit
The largest city in the state of Michigan, Detroit is probably most well known as the city where Henry Ford pioneered the first assembly lines used to manufacture automobiles. Although the Motor City was hit hard by the recession, things are looking way up for this real estate market, in part because of the following three factors:
- Two billionaire families have committed to turning around the blighted city and appear to have succeeded. The downtown area has been totally revitalized and many of the dilapidated foreclosures have been torn down.
- Detroit is home to “The Big 3” major automotive companies in the U.S. and Canada (General Motors, Ford Motor Company, and Chrysler), and the headquarters/major corporate offices of 100 Fortune 500 companies, including: Penske Automotive, Quicken Loans, Kellogg, Whirlpool, and Walmart.
- And yet, prices are still extremely affordable in this area – it’s still possible to purchase fully-renovated, turnkey homes in Detroit for around $80,000 (as low as $50,000 in some cases).
Detroit Housing Market Trends
Detroit Real Estate Market Trends & Statistics 2019
In this section, you’ll learn about the top three factors that make Detroit one of the strongest real estate markets today, including: affordable home prices, strong monthly rental income, and equity growth potential. Explore Detroit’s housing market, population, and employment trends in the tabs to learn more.Data Sources:
- https://www.zillow.com/
- Real Wealth Network Affiliate Data
- https://factfinder.census.gov/
- https://www.deptofnumbers.com/
Detroit is more affordable than many other U.S. markets today.
- In January 2018, the median price of 3 bedroom homes in the Detroit metro area was $190,000. This is 6% lower than the national average of $202,000.
- However, in neighborhoods where Real Wealth Network members invest the median price of 3 bedroom homes in January 2018 was only $79,962. This is 61% lower than the national average.
- This shows us that real estate in Detroit is more affordable than many other U.S. markets today. This is especially true in the Detroit neighborhoods where Real Wealth Network members are investing today.
It’s possible to generate more monthly rental income in Detroit than most other U.S. cities today
- In January 2018, the median monthly rent 3 bedroom homes in Detroit was $1,405, which is 0.74% of the purchase price of $190,000. This is slightly higher than the national purchase-to-rent ratio of 0.71%.
- In Detroit neighborhoods where Real Wealth Network members invest the median monthly rent for 3 bedroom single family homes was $942 in January 2018. This is 1.18% of the purchase price, which is significantly higher than the national average.
- This shows us that Detroit offers investors a strong opportunity to generate rental income at a significantly higher rent-to-purchase ratio than the national average.
Detroit home values have been appreciating quickly.
- In January 2012 median price of 3 bedroom homes in Detroit was $104,000. This means that, in the last 6 years (Jan 2012 to Jan 2018), 3 bedroom homes in Detroit have appreciated by a whopping 68%. During the same period, 3 bedroom homes increased only 41% nationwide.
The median monthly rent in Detroit has been rising consistently over the last six years.
- Between January 2012 and January 2018 the average rent for 3 bedroom homes in Detroit increased by 18%, which is also above the national average of 17% during this period.
- This shows us that there’s a strong opportunity for equity growth and increased income potential over time in the detroit area.
Detroit’s population has been growing very slowly.
- Since 2010, Detroit’s population has only increased 0.50%. During the same period the national population grew by 5.29%.
- Despite very slow growth, the Detroit metro still outperforms similar markets at attracting educated millennials; this is likely due to a number of research universities in the area, including Wayne State University.
- Detroit also has a few billionaires on their side, including Dan Gilbert (Quicken Loans CEO) and Mike Ilitch (Owner of Little Caesars Pizza Chain, the Detroit Red Wings, and the Detroit Tigers) who have pledged over $4 billion to help with the city’s revitalization efforts.
- All this attention from millennials and billionaires is a good sign that future growth in Detroit is likely.
Detroit is creating jobs, but not as many as other markets.
- In the past year, the number of jobs in Detroit has grown by 0.76%. This is lower than the U.S. annual job growth rate of 1.73%.
- Despite very slow growth, the Detroit metro still outperforms similar markets at attracting educated Millennials. Likely this is due to a number research universities in the area, including Wayne State University.
Detroit is Very Affordable
- In the Detroit neighborhoods where Real Wealth Network members invest the median price of 3 bedroom homes in January 2018 was only $79,962. This is 61% lower than the national average.
- This shows us that real estate in Detroit is more affordable than many other U.S. markets today. This is especially true in the Detroit neighborhoods where Real Wealth Network members are investing today.
Detroit has Strong Rental Income Opportunities
- n Detroit neighborhoods where Real Wealth Network members invest the median monthly rent for 3 bedroom single family homes was $942 in January 2018. This is 1.18% of the purchase price, which is significantly higher than the national average.
- This shows us that Detroit offers investors a strong opportunity to generate rental income at a significantly higher rent-to-purchase ratio than the national average.
Detroit is Rapidly Appreciating
- In the last 6 years (Jan 2012 to Jan 2018), 3 bedroom homes in Detroit have appreciated by a whopping 68%. During the same period, 3 bedroom homes increased only 41% nationwide.
- During the same period the average rent for 3 bedroom homes in Detroit increased by 18%, which is also above the national average of 17% during this period.
- This shows us that there’s a strong opportunity for equity growth and increased income potential over time in the detroit area.
Millennials & Billionaires Love Detroit
- Despite very slow population and job growth overall, Detroit has been attracting more educated Millennials than similar cities across the nation.
- Plus, with investors like Dan Gilbert investing billions in redevelopment and corporate expansion, future growth in Detroit seems likely.
Major Employers in Detroit
Detroit Housing Market News
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Disclaimer: The information provided on this page is for educational purposes only. Real Wealth Network makes no warranty or representation as to the accuracy, completeness or reliability of this information. Please be advised that this content may contain errors, is subject to revision at all times, and should not be relied upon for any purpose. Under no circumstances shall Real Wealth Network be liable to you or anyone else for damage stemming from the use or misuse of this information.
