2021 Housing Market Overview
Detroit Real Estate Market 2021
Detroit Real Estate Market Overview
Metro Population: 4.3 M
Median Household Income:$65,000
Unemployment Rate:6.3%
Median Home Price*:$188,000
Median Monthly Rent*:$1,255
Interested in investing in the Detroit real estate market in 2021? On this page you’ll learn about housing market trends and statistics to help you make that decision.
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 under $100,000.
Detroit Housing Market Trends
Detroit Real Estate Market Trends & Statistics 2021
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/
- https://factfinder.census.gov/
- https://www.deptofnumbers.com/
- RealWealth Property Team Data
Detroit is more affordable than most other U.S. markets today.
- In 2020, the median price of homes in the Detroit metro area was $188,000. This is 26% lower than the national average of $254,000.
- However, in neighborhoods where RealWealth members invest the median price homes in 2020 was only $97,500. This is 62% 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 RealWealth members are investing today.
It’s possible to generate more monthly rental income in Detroit than many other U.S. cities today.
- In 2020, the median monthly rent for average homes in Detroit was $1,255, which is 0.67% of the purchase price of $188,000. This is just lower than the national purchase-to-rent ratio of 0.68%.
- That said, in the Detroit neighborhoods where RealWealth members invest the median monthly rent for average homes was $1,075 in 2020. This is 1.10% of the purchase price, which is 62% higher than the national average.
- This shows us that, in some Detroit neighborhoods, there’s 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 2014 median price of average homes in Detroit was $127,087. This means that, in the last 6 years (2014 to 2020), average homes in Detroit have appreciated by a whopping 48%. This is 32% faster appreciation than the national average.
The median monthly rent in Detroit has been rising consistently over the last six years.
- Between 2014 and 2020, the median rent for average homes in Detroit increased by 21%, which is below the national average of 23% during this period.
- Although Detroit rents have risen more slowly than the national average, they have been rising consistently year over year. This is a good sign for investors looking to invest in a market that’s growing steadily, making it likely more stable.
Detroit’s population has been growing very slowly.
- Since 2010, Detroit’s population has only increased 0.66%. During the same period the national population grew by 6%.
- 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 possible.
Detroit is creating jobs, but not as many as other markets.
- In the past year, the number of jobs in Detroit decreased by 9.86% due to COVID-19. This is slightly higher than the U.S. annual job loss rate of 6% in 2020.
- Despite very slow/ negative growth, the Detroit metro still outperforms similar markets at attracting educated Millennials to their workforce. 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 RealWealth members invest the median price of average homes in 2020 was only $97,500. This is 62% 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 RealWealth members are investing today.
Detroit has Strong Rental Income Opportunities
- In the Detroit neighborhoods where RealWealth members invest, the median monthly rent for average homes was $1,075 in 2020. This is 1.10% of the purchase price, which is 62% higher than the national average.
- This shows us that, in some Detroit neighborhoods, there’s a strong opportunity to generate rental income at a significantly higher rent-to-purchase ratio than the national average.
Detroit is Rapidly Appreciating
- In 2014, the median price of average homes in Detroit was $127,087. This means that, in the last 6 years (2014 to 2020), average homes in Detroit have appreciated by a whopping 48%. This is 32% faster appreciation than the national average.
- During the same period, the average rent for homes in Detroit increased by 21%, which is just below the national average of 23% during the same period. Although Detroit rents rose more slowly than the national average, they have been rising consistently year over year. This is a good sign for investors looking to invest in a market that’s growing steadily, making it likely more stable.
- 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
- "#1 City Where Paycheck Goes the Furthest" - Forbes
- "#8 Best City to Buy a Rental Property" - Business Insider
- "Job Growth in Detroit" - Bureau Of Labor Statistics
- "5 Things to Know About Detroit" - Grand Circus
Property Teams
Property Team details can only be viewed in the Investor Portal, which can be accessed by RealWealth members who are logged in at Investor.RealWealth.com
Sample properties
Sample properties can only be viewed in the Investor Portal, which can be accessed by RealWealth members who are logged in at Investor.RealWealth.com.
Disclaimer: The information provided on this page is for educational purposes only. RealWealth 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 RealWealth be liable to you or anyone else for damage stemming from the use or misuse of this information.