Population Uptick Makes Now the Perfect Time to Invest in Detroit
Let’s talk about some fantastic news coming out of Detroit. For the first time since the 1950s, Motor City has seen a population increase.
According to the latest U.S. Census estimates, Detroit’s population grew by 0.3% in 2023. This might seem like a modest gain, but it’s monumental when you consider it’s the first rise in over seven decades.
Let’s explore what this means for landlords, and why you should seriously think about investing in Detroit’s housing market right now (if you haven’t already).
Population on the Upswing
Detroit’s population reached 633,218 in 2023, marking an increase of 1,852 residents from the previous year.
While we’ve still got a long way to go to hit our peak numbers from back in the day, this growth is a clear sign that Detroit is bouncing back.
Mayor Mike Duggan has been vocal about challenging the Census Bureau’s methods, arguing that their calculations have historically undercounted the true number of residents due to factors like blight removal. But now, it seems like the Census figures are finally matching the reality that we’ve all seen taking shape:
Detroit is back, baby.
Economic Revival is Real
This population uptick is backed by a strong economic recovery.
Detroit has been attracting new businesses and revitalizing existing ones, creating a bustling environment that’s drawing people back to the city.
From tech startups to big investments by automotive giants, Detroit is buzzing with renewed vigor. The recent success of the Detroit Lions and hosting huge international events, such as the NFL Draft, have also helped reshape the city’s image.
Key Reasons to Invest in Detroit Now
Now, let’s get to the heart of the matter: why should you consider investing in Detroit right now? Here are some compelling reasons:
- Affordability: Detroit’s housing market remains extremely affordable compared to other major cities. With the rising population and economic growth, property values are poised to increase. Investing now ensures you get in while prices are still reasonable.
- Increased Demand: More people moving to Detroit means a higher demand for rental properties. Whether it’s professionals seeking job opportunities or families looking to relocate, there’s a growing pool of potential tenants.
- Neighborhood Revitalization: The city’s efforts to clear blighted areas and revitalize neighborhoods are paying off. Previously neglected areas are being transformed into vibrant communities. Investing in these up-and-coming neighborhoods can offer substantial long-term returns.
- Pro-Growth Environment: The city leadership is fully committed to growth and development. Mayor Duggan’s push to accurately reflect the population and secure the necessary funding demonstrates a strong dedication to Detroit’s resurgence. This supportive environment is great news for property investors.
Future Growth and Opportunities
Experts believe that Detroit’s population growth is just beginning. Continued economic investment and community revitalization projects are expected to attract even more residents.
Detroit has climbed from the 27th to the 26th largest city in the country, surpassing Portland, Oregon. This upward trend is expected to bring more funding, create jobs, and provide more opportunities for residents.
But don’t just take our word for it – here are just a few of MANY large investments currently in development:
- District Detroit: The $1.5 billion District Detroit project is moving forward with a planned groundbreaking on at least one of its ten major projects by late March 2025. This ambitious development includes mixed-use buildings that will offer residential, commercial, and entertainment facilities.
- Fisher Body Plant Redevelopment: The iconic Fisher Body Plant is undergoing redevelopment, converting the historic site into a mixed-use space with apartments, offices, and retail stores.
- Michigan Central Station Tech Campus: Ford Motors is pouring nearly $1B into turning the historical building into an autonomous vehicle development hub, bringing a huge influx of highly-skilled jobs to the Corktown area.
And the list goes on…
Conclusion
Detroit is on an upward trajectory both in terms of population and economic strength. The housing market is currently affordable, but with increasing demand and positive growth projections, property values are set to rise.
Investing in Detroit now means you can benefit from both strong rental returns in the short- to medium-term and property appreciation in the long term.
If you want tailored information about which neighborhoods and types of properties to invest in, contact us.
Our team can help you find, purchase, and manage the perfect Detroit rental property.