The Motor City
Discover Detroit's Real Estate
The biggest and most populous city in the state of Michigan and biggest US city on the US – Canada border.
Culture, History, and Business
The future of Detroit, Fort Pontchartrain du Detroit was founded in 1701. The area became the Great Lakes region’s most important industrial center. It also became the fourth-biggest city in the country in 1920. It went on to become a booming auto industrial center with massive growth across its districts.
Currently, the city of Detroit can be considered a developing market. Once an automotive and manufacturing industrial center, Detroit suffered massive setbacks as the national economy plummeted in the early 2000s. It did not recover at the pace of most of the cities within the United States; however, it has partnered with numerous giant corporations, non-profit groups, and government agencies to breathe new life into the region.
The motor city is still home to automotive manufacturing plants of some reputable automotive producers like Fiat, Ford, General Motors, and Chrysler. Other large corporations inside the city include Google, Quicken Loans, and Microsoft.
Many companies have been recently investing in the Detroit area with huge amounts of cash. Notable among them are JP Morgan Chase, investing $150 million, Urban Science Applications, Inc. based in Detroit investing $2.1 million geared at expanding their operations and producing 126 jobs, and Futuramic Tool and Engineering Company with a proposed $20 million investment plan that will also add 109 jobs to the Detroit metro area.
Real Estate Appeal
The city is the most affordable place to buy real estate. Detroit’s real estate market is an all-comers market. In contrast to some of the urban centers like New York City and Los Angeles. The average house price in LA and New York at present is $629,900 and $672,400, respectively. However, in Detroit, you can buy a home for $41,500. The median property price in the city of Detroit is $49,580.
The low entry market point of the city has led to investors capitalizing on the ROI. The average rental rate in the city of Detroit varies. This is dependent on how close the neighborhood is to the Metro area ranging from $750-$1072 monthly. Major urban real estate markets such as Miami, Los Angeles, and New York have current ROI rates set at between 4.5%-6%. Real estate investors in Detroit are currently gaining rental rates around 7%-8.5%.
For details of why you should consider investing and the hottest neighborhoods, see our subsequent related articles.
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