Moving to Motown: How U-Haul Data Reveals Detroit’s Growth Story

Motown
2024-10-21

Moving to Motown: How U-Haul Data Reveals Detroit’s Growth Story

As lifelong Detroiters who have been managing rentals and investing in properties privately here for almost 30 years, this is the most exciting time for the city that we’ve ever seen.

There’s been over $6.8 billion in capital investments, creating more housing, more jobs, and more growth for the city overall.

The end result?

A lot of people are moving to Detroit.

So, with the population on the rise for the first time since the 1950’s, some might ask: where are all of these incoming residents moving to Detroit from?

U-Haul’s latest Migration Trends Report answers that question.

So let’s take a look at the data and see what it means for Detroit landlords.

U-Haul’s Migration Trends Report – The Detroit Data

Here’s a summary of the data at a state level on where moving trucks are originating when headed for Detroit. Note that this doesn’t include arrivals from within the state of Michigan itself:

Here’s what the data looks like at a city level (also excluding arrivals from within Michigan):

What’s interesting to us is that the top cities and states listed here happen to be the same areas that are also popular with buy-and-hold investors.

Pretty much every state on that list is known for areas with affordable properties and strong rental markets. And many of the cities listed here are top destinations for new landlords to get onto the property ladder.

So what does this migration mean for investors?

Where to Invest in Rental Properties?

If you do a Google search for “best places to buy rental properties in 2024,” the very first result suggests 25 cities for investors to consider. We’ve edited out a few to highlight our point, but take a look at the places on the list:

Notice how similar this looks to the Migration Trends Report list from U-Haul?

Investors should take note that residents are leaving those cities to come to Detroit, following the surge of development and job creation that’s been taking place here, with companies like Ford, Quicken and Penske fuelling commercial activity .

What does that tell you in terms of where to invest next?

Motor City on the Map Once More

It’s pretty cool to see the city we live in changing before our eyes.

As investors, it’s even more exciting.

Because with all of the capital pouring into the city  and the population finally increasing again , the impact on the real estate market here is already being felt.

House prices are up, rents are up, and they’re going to continue to move in that direction for the foreseeable future. So if you’re a buy-and-hold investor, this is definitely a market you should be watching.

Want to learn more about investment opportunities in Detroit’s rental scene? Contact us for tailored advice on where to invest next, plus a list of our exclusive off-market deals.

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