Hamtramck Named One of the US’s Top 5 Suburbs to Live In
The city bubble has burst.
With work from home now an option for many workers and rents soaring in metro areas, there’s been a mass exodus of tenants to the suburbs. Particularly in areas with home values under $250,000.
Places like Hamtramck.
So, Detroit investors, pay attention, because big things are happening in this little suburb. In fact, it was just named as one of the top 5 suburbs to live in the US.
Hamtramck is the USA’s #2 Most Popular Suburb
GoBankingRates.com recently released data on the 50 most popular suburbs under $500k in the US.
Amongst the top spots were places like:
- Buckeye, AZ
- Mooresville, NC
- Union City, GA
- Canyon Lake, TX
- Clermont, FL
But who was at #2 on the list?
Hamtramck, MI – just a 15 minute drive from Downtown Detroit! . What’s interesting about Hamtramck being on this list is it’s not a traditional suburban city because it’s entirely surrounded by the City of Detroit.
What do all of these places have in common?
Affordable housing stock, close proximity to major metropolitan areas, and rapidly increasing populations over the past 2 years.
What’s different about Hamtramck?
House prices here are about a THIRD of the price of the number 1 suburb (Mooresville, NC).
Here’s a quick breakdown of the area by the numbers:
Hamtramck, Michigan
- October 2024 home value: $168,818
- YoY Appreciation: 9.1%
- 2020 total population: 21,704
- 2022 total population: 27,842
- Two-year percentage change in total population: 28.28%
- Median rent: $1,200
- YoY Increase: $150
Let’s take a deeper look at why Hamtramck is so popular, and why landlords should definitely be investing in this fast-growing city.
Hamtramck Real Estate Market Overview
Back in 2021, we did a Deep Dive into Hamtramck and gave it a score of B+ as an investment area for landlords.
Why?
We liked this area for its:
- Excellent cash flow potential: Well above the standard 1% benchmark for rent-to-price ratios
- Strong appreciation rates, which were forecasted at 4.1% growth YoY (they’ve heavily outperformed that)
- Good tenant quality and a continuously developing community—resilient even to the worst of economic downturns and housing market crashes
Back then, the average sale price in Hamtramck was $137,832, and average rents were $850.
Today, the average sale price is $168,818 – up 9.1% YoY, and 22.5% since 2021! We don’t mean to brag, but how many of our readers took our advice and invested in the city?.
Average rents are now $1,200 – an increase of $150 YoY (as of November 2024):
If you’re calculating the rent-to-price ratio here and thinking things don’t add up, don’t worry.
While the average sale price here is around $170k, you can still find many investment properties here below that average which do fit the 1% rule (as long as you’re happy to do renovations to add value).
Landlords: Should You Invest in Hamtramck?
Should you buy rental investments in Hamtramck?
In our opinion, absolutely.
But what do we know? We’ve just been investing in and managing properties in the Metro Detroit area for almost three decades.
We will say this, though:
With the population increasing by nearly 30% in the last two years alone, you don’t need to listen to our opinion. The numbers speak for themselves.
It’s a simple case of supply and demand: Demand is increasing massively right now, and supply is limited. So home values won’t remain this affordable for long – and neither will rents.
Invest in this suburb just 6 miles from the City of Detroit now, before prices go up.
Looking for 3-bedroom investment properties under $200,000? Contact us for a list of our exclusive off-market deals in and around Detroit.