Deep Dive into East English Village, a Detroit Neighborhood
Detroit attracts buy-and-hold investors because it has:
- Low barrier to entry: Properties under $150k
- Healthy returns: Strong rental cash flow
- Long-term growth: High appreciation rates
But you can only win here if you know where to invest.
That’s because the City of Detroit has 183 neighborhoods, all different from one another (some pretty starkly different). And even within each neighborhood, there’s a lot of variety from block to block.
So we created this Deep Dive series to take you street by street through the neighborhoods of Detroit and show you what kind of rental investment opportunities you can find here. All while explaining the intricacies of each area, using our 30+ years of experience living and investing here.
Today, we’re looking at East English Village – widely considered one of the “nicest” neighborhoods in Motor City to live in.
We did a walk-through of the area to give you a lay of the land, and you can clearly see why it’s such a desirable place to live:
Tree-lined avenues, quaint brick homes, kids playing in the street… What’s not to like?
But our goal here is to actually look at the data to see if East English Village is a smart choice for rental investors. We’ll be analyzing:
- Sale Trends
- Rents Trends
- Properties on the Market Currently
- Tenant Demographics
- Neighborhood Livability
And at the end, we’ll give the neighborhood a final score in terms of investment potential.
This way, you can easily and objectively compare different areas when choosing when to buy your next rental property in Detroit.
Check out the neighborhoods we’ve covered in past Deep Dives:
Interested in an area that’s not listed here? Please let us know! We’d be happy to share our data with you, and we’re always open to suggestions on which neighborhood to cover next.
But for now, let’s turn the spotlight on East English Village.
Overview of East English Village – Detroit, Michigan
East English Village (EEV) is bordered by Harper Avenue on the north, Cadieux Road on the east, Mack Avenue on the south, and East Outer Drive on the west:
It’s just a short commute to Detroit, but maintains a sparse suburban feel, with attractive period homes, good schools and thriving local businesses that make this an ultra-desirable neighborhood with residents.
There’s also a lot of history here. Most of the homes here were developed in the 1930s, 40s, and 50s, and the architectural charm is still very evident today. But there’s a renaissance happening today, with brand-new apartment buildings being built, and more new homes being constructed.
Still, EEV is about 32% less densely populated than the Detroit average, owing to the fact that most of the properties here are single-family units, rather than apartment buildings.
Here’s some quick data on the neighborhood:
It’s definitely a more high-end neighborhood, like affluent Grosse Pointe nearby, and is much further along than nearby Cornerstone Village and Morningside to the east and west of it (respectively). In fact, people are starting to move out because they can’t afford it anymore.
Basically, this is a solidly B+ neighborhood.
We wrote a Deep Dive into East English Village back in 2022, where we gave it an “A” grade in terms of rental investing for its:
- Affordable houses, ideal for positive cash flow
- High rents, with quality tenants who mostly pay their rent consistently
- High-quality housing stock, well-maintained, without the need for expensive renovations
But the market has moved on since then.
If you want to buy a rental property in EEV in 2024, you’ve got to be willing to do the work – unlike other areas in Detroit, you can’t find something turnkey here and have it easily fit the 1% rule anymore.
If that’s not a problem for you, then read on. We’ll show you how you can still find deals here for under $100k, renovate, and flip or rent them for strong returns.
(We’ll even show you which streets to focus on!)
So, without further ado, let’s Deep Dive into the numbers.
Housing Market Analysis
To start, we’ll look at property prices and rent amount trends in East English Village over the past few years.
Sale Trends
Since 2016, values here have increased by an incredible 264% – from $38,518 in June 2016 to $140,116 in November 2024:
The average home price in all of Detroit as a whole is $74,882 – so prices here are now pretty much double the city average, and appreciation is slowing.
In other words: this is an almost entirely gentrified neighborhood now, and most of the massive equity gains have been made already.
But that doesn’t mean you can’t still find great deals here (if you’re unafraid of renovations).
We’ll take a closer look at a few properties currently on the market below to illustrate, so stick around.
Want more info on specific investment opportunities in East English Village, Detroit, or Michigan? Contact us for a free consultation.
Rent Trends
Back in 2022, average rents in East English Village were $824/month, although even then it was hard to find anything on the market for under $1,000/mo.
Fast forward to 2024, and the average rent is now $1,307 (or as high as $1,595, according to some sources).
Most of what’s on the market now are single-family homes, with 3 bedroom units going for $1,500-$1,800 a month, depending on the level of finishings.
Here’s a then-and-now snapshot of how the market has developed here since our last Deep Dive into East English Village:
Detroit rents have increased 1.7% YoY on average, and sale prices by 20.7% YoY, over the same period.
So while there is still steady appreciation here and rents are rising, you won’t see the huge value gains that other neighborhoods (like Cornerstone Village) can produce by getting in on the ground floor before development booms.
In EEV, the property value bubble has already ballooned.
Investment Opportunities in East English Village
Now, let’s look at some units for sale right now.
As of the time of writing (November 2024), there are 42 houses on the market in East English Village:
Most of the properties for sale here are newly-renovated, meaning there’s not much meat left on the bone for investors. But there are still some vacant units in need of repair – we take a closer look at one below.
But for now, let’s compare this to the rental market.
There are just 23 rentals on the market in November 2024:
Most sit in the $1,200-$2,000 range, but here’s a breakdown of the monthly rent averages in EEV based on the market currently:
- 2 bedroom: $1,250
- 3 bedroom: $1,500
- 4 bedroom: $1,800
There’s a mix of apartments and single-family homes, so there’s an opportunity to convert single-family units into multi-family to increase profits, too.
Now, let’s zoom in on a few of these properties and run the numbers.
Example Investment Property
Because RTP ratios here can be tight, this is a market where the highest returns stand to be made from flipping houses, or buying rundown properties and renovating them to make them rent-ready.
Let’s take a look at two different properties on the market right now in East English Village to give you an example.
This is a 2-bedroom house on Yorkshire Street, a tree-lined road with almost exclusively brick architecture all the way up and down:
There aren’t any pictures of the interior, but let’s just assume it’s pretty rough.
With a full floor-to-ceiling renovation, here’s how the math works:
Purchase Price: $90,000 (according to the Zestimate)
Repair Costs: $30,000
After-Repair Value: $120,000
Monthly Rent: $1,300
RTP Ratio: 1.08%
That’s not bad in terms of rental returns.
We estimate that the market value for this property in a fully-renovated condition would be somewhere in the region of $165,000, however. If you could convert it into a 3-bedroom (which should be possible with 1,440 sq. ft. to play with), it would be worth more like $200k, with a monthly rent of $1,800-$2,000.
So for flippers, this could be an interesting short-term investment, too.
Just to give you an idea of what the finished product could look like, here’s another property for sale on Yorkshire St., just a few blocks away:
This is a larger property (4 BR/2 Bath vs 2 BR/1 Bath), but this is the standard to which most of the homes in this area are finished to, so it’s a good example of what you should be aiming for when renovating in EEV.
Area and Tenant Quality
Now that we’ve looked at the numbers, let’s move on to a more qualitative analysis.
We’re going to analyze East English Village’s:
- Housing Stock Quality
- Tenant Quality
- Area Development
- Crime & Safety
To give an overall view of the liveability of the area, and what kinds of tenants it attracts.
Housing Stock
Home ownership rates are pretty high in EEV, with 63% of units listed as owner-occupied. Residents also tend to stay, so many properties haven’t changed hands that often.
That’s strongly reflected in how well-maintained the homes are here, which is something you immediately notice when walking through this area.
You’ll also notice a lot of red brick homes, most of which (78.8%) are detached and were built between 1930-1950. The average age of a property here is 66 years old, which is lower than the Detroit average (70-100 years old). That means lots of period charm, but not as many maintenance issues.
There’s a large variety of styles in East English Village, too. Most homes here were built by owner-occupiers, not developers, so you’ll see everything from Colonial brick or Tudor homes to Cape Cod style and bungalows, rather than cookie-cutter designs.
But there are still some vacant properties in need of updating, like the example we showed above. That’s where the most investment potential lies, but be aware you might encounter potentially expensive issues during renovation, like:
- Tilted and corroded cast-iron drainage pipes
- Asbestos present in heating components and ceiling textures
- Use of lead paint throughout the residence
- Weakened or compromised support posts and piers
- Absence of insulation in the home’s outer walls
- Aging systems including roofing, plumbing, HVAC, and electrical fixtures
These issues are often found in properties from the 1950s. Identify these potential problems early by hiring a professional inspector before purchasing – that way, you can allocate funds for necessary repairs and integrate these costs into your investment strategy effectively.
Tenant Stock
After the location and the property itself, the next factor you need to consider when evaluating a rental investment is: Tenants.
So, what kind of tenants can you expect in East English Village, vs. the rest of Detroit?
Here’s a snapshot:
East English Village is home to some of the best tenant stock in Detroit, in our opinion. Not only does it attract a mix of retirees, blue-collar and white-collar professionals, and young families, but its high-end housing stock brings in the types of tenants who really take pride in their home.
That’s a major win for landlords.
On top of that, rent payments here shouldn’t be an issue. Going on the general rule of “Rent should = 3x monthly salary”, EEV residents are well above the average:
- Average Monthly Household Income: $5,812
- Average Monthly Rent: $1,307
- Income = 4.45x Monthly Rent
In summary, this is a strongly Class B+ area that’s popular with high-quality for the high quality of life it offers.
Economic Development
Detroit as a whole is seeing a huge resurgence right now. Billions of dollars of investment is coming in, businesses are moving in, and areas like EEV are experiencing a property price bubble that’s extending to neighboring parts of the city.
Here’s an overview of some of the big real estate investments taking place in East English Village in 2024:
- “The Ribbon”
A new $8M mixed-use affordable housing development just opened officially in October 2024, bringing 18 apartment units and a 2,000 square foot fitness studio to the East Warren Ave Corridor.
This is part of a greater $42M initiative to revitalize the corridor as a whole (check out the full list of developments from Urbanize Detroit here).
- Fischer Street New Build Homes
Greatwater Homes, a Detroit-based developer, is actively constructing new detached houses on Fischer Street near Kercheval. With 18 lots ready for new builds, the homes range from 900 to 1,800 square feet.
Two of the completed homes went under contract within a week, reflecting strong market interest. They are priced between the high $200,000s and high $300,000s and feature garages, air conditioning, and premium fixtures.
This development underscores the fact that investors see the area’s potential for lucrative ROI on new construction projects.
- The Deco
An old beauty school, located at 16703 E. Warren Avenue, is being transformed into 6-9 residential apartments, with ground floor retail space intended for food and beverage retailers.
The project will involve a complete gutting of the building, and is part of the flurry of investment taking place along the E. Warren corridor.
All of this just goes to show that, even though prices in East English Village are high, investors still see the opportunity to reap strong returns from developments here – particularly when it comes to new construction and renovations.
Crime and Safety
Overall, East English Village is considered safer than the City of Detroit on average.
According to Niche.com, most residents give it positive reviews – with the exception of some complaints about how gentrification has driven up house prices.
With that being said, Detroit is a very block-by-block city, so it’s important to select a location carefully when investing here. We recommend doing boots-on-the-ground research (or working with a local agent, like us, who can do it for you) before you buy.
Investment Report Card
Now let’s add all of this up and see how East English Village performs.
We’ve created this standardized Report Card for each neighborhood, so you can understand how we evaluate and determine the overall score we give to each area:
We see this as a great area for investors who:
- Are looking to flip houses for under $150k and see strong returns.
- Are willing to renovate properties to make them rent-ready.
- Want to attract a higher quality of tenants.
In short, this is definitely not one of Detroit’s cheaper neighborhoods, but it is a pretty “safe” bet vs. some of the more affordable areas of the city. And there are still deals to be found.
We would advise looking at:
The corner of Cadieux and Warren and the surrounding area (the heart of EEV)
A new bike lane was just put in here to make the area more cyclist-friendly. There are lots of great restaurants, cafes, outdoor BBQ shops serving up some pretty epic fare, and chain eateries.
We had a client flip a house near here recently. They bought it for $60-70k, renovated it for $30k, and flipped it for $120k, so this is a good area if you’re a flipper.
Kensington & Yorkshire Streets
These are attractive, well-kept brick neighborhoods, with kids playing in the street. In other words: Solidly B+.
The renaissance has already happened here for the most part, but you can still find properties under $150k here and flip it for a healthy profit (most are selling around the $250k mark, fully renovated).
Meanwhile just a block away, on Yorkshire St., you have the two example properties we listed above, plus a few more vacant homes prime for development.
But you’ve got to be willing to do the work, or pay top dollar for a property which a flipper has already squeezed all the value out of.
Our advice for landlords who’ve been priced out of EEV is to look in neighboring Cornerstone Village instead.
While it’s also experiencing a surge in home prices and rents, it’s further behind East English Village in terms of gentrification, so there are still lots of opportunities for investors to add value and see healthy returns.
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Stay tuned for our upcoming Deep Dives into other Detroit neighborhoods. If you have a specific area in mind, leave a comment, and we’ll be sure to cover it in one of our next installments.
Want to explore investment properties in East English Village? Contact us for a list of our available units.