Piety Hill’s 88 New Affordable Housing Units: What It Means for Investors
Two long-vacant apartment buildings in Detroit’s Piety Hill neighborhood are getting a new lease on life.
The Kingsley Arms and Lee Arden buildings have both been fully renovated, adding 88 units of affordable housing to the area.
Nestled just north of Wayne State University, Tech Town, and Midtown—and flanked by the historic Boston-Edison neighborhood to the west and the cozy North End to the east—Piety Hill is prime real estate. It’s perfect for commuters, students, university staff, and anyone seeking a trendy, accessible place to live.
So, for landlords and investors, why is this project important?
Because it signals a growing demand for affordable housing in Detroit and highlights the city’s commitment to eliminating blight and driving up property values.
Let’s take a deeper look to see why.
The Details: Kingsley Arms and Lee Arden Renovations
The Kingsley Arms and Lee Arden apartment buildings, located at 646 and 660 Hazelwood St., had been vacant for over a decade before undergoing this $10.3 million renovation.
Here’s what you need to know:
- Unit Breakdown:
- 4 studio apartments
- 63 one-bedroom apartments
- 21 two-bedroom apartments
- Affordability:
- Rent starts at $805 per month, with affordability guaranteed for 13 years.
- 18 units (9 per building) are reserved for residents earning 45% or less of the area median income (AMI), or $31,815 for a single-person household.
- Another 18 units are reserved for residents earning 55% of AMI, or $38,885.
- The remaining units are for residents earning at or below 80% of AMI, or $56,560.
- Sustainability:
- Upgrades include LED lighting and efficient water fixtures, qualifying the buildings for $2.1 million in financing through the Wayne County Property Assessed Clean Energy (PACE) Program.
- Leasing Status:
- Kingsley Arms is 60% leased, and Lee Arden is 20% leased, with residents already moving in.
Why Detroit Is Investing in Affordable Housing
The city’s focus on projects like these serves two key purposes:
- Eliminating Blight and Driving Up Property Values
- Renovating dilapidated buildings not only removes eyesores but also increases property values across the neighborhood.
- Higher property values mean more tax revenue, which the city can reinvest into additional projects, creating a cycle of upward growth.
- Addressing the Rent Bubble
- Detroit’s rental market is under pressure, with rents outpacing incomes. In fact, it’s currently cheaper to have a mortgage than to rent in the city.
- Affordable housing projects like this help stabilize the market, preventing the rent bubble from growing too fast and bursting.
- The high demand for affordable units highlights a significant opportunity for landlords who understand the management needs and risks of lower-income tenant pools.
What This Means for Investors
Here’s why Piety Hill is worth your attention:
- Prime Location:
- Proximity to Wayne State University, Tech Town, and Midtown makes it ideal for students, professionals, and commuters.
- Neighboring areas like Boston-Edison and North End add to its appeal as a desirable residential hub.
- Growing Demand for Affordable Housing:
- The rapid leasing of Kingsley Arms and Lee Arden shows just how much demand exists for affordable units in Detroit.
- With rents starting at $805, these units are accessible to a wide range of tenants, ensuring low vacancy rates.
- Upward Value Cycle:
- As the city continues to invest in neighborhoods like Piety Hill, property values are likely to rise.
- For investors, this means potential appreciation alongside steady rental income.
A Model for Sustainable Growth
For landlords, this is an opportunity to tap into a growing market while contributing to the city’s transformation.
But success in this space requires understanding the unique challenges of managing affordable housing, from tenant screening to maintenance. So we advise working with a local property management company (like us 😉) who can guide you on the realities of the Detroit market BEFORE you buy.
Interested in investing near Piety Hill or other up-and-coming Detroit neighborhoods? Contact us today for a list of our exclusive off-market properties!