The housing situation in Detroit is a mixed picture, the best way to describe it is moderate progression. Anyone who lives in the area can attest to the fact that the downtown area is a modern metropolis while the further outward one goes, the less economically developed it appears. Similar to a bullseye, the progress hits dead center and spreads outward. The only exception to this trend is the old State Fairground. Due to the effects of the development patterns, housing is more affordable the further one goes away from the downtown area. All things considered the progress is slow, but it is coming along.
Analyzing the graphs from the website Trulia provides a picture of housing prices that are relatively stabilized. Looking at the last year from October to present day the sale price ranged from 44.5K to 40.5K for all types of houses. Also the median rent for the city ranged from $750 to $775 a month. Over the last five years the situation is a bit volatile. The median sale price starting in October 2011 was 35K, and now averages close to 45K. For the most part it seems that housing prices in the area are on an upward trajectory.
According to Patrick Clark of Bloomberg News, 2016 is slated to see a record increase in millennial home buying. As the largest demographic group they will buy an estimated one out of every three homes. The median age for first time home buying will increase slightly because of several barriers for home ownership. Barriers that have a negative impact on home buying are out of the control of millennial buyers such as wage stagnation, rising housing cost, and starting families later in life.
Owning a home is still considered a part of the American Dream of millennials. However, access to credit and affordable housing remain problems to be solved. One major issue that impacts first time home buying is the issue of the Federal Reserve’s rising interest rates. Interest rate hikes are the Sword of Damocles hanging over the head of not just housing, but economic progress around the country. Over the past few years the demand for rentals has increased along with the price of rentals. This occurrence should make buying homes more likely.
According to Louis Aguilar of the Detroit News, the revitalization of Detroit is uneven with most of the investment being made in the downtown region. Bedrock Real Estate, a company owned by Dan Gilbert, along with the Illitch family, are the driving forces behind the revitalization efforts. Most of the homes and rentals in the downtown area are going to the middle class. Surprisingly, there is a paltry amount of mortgages being sold, most of the new homeowners are paying with cash. Currently Bedrock is in the process of finalizing more housing developments. Overall the trend is towards turning Detroit into a booming town.