Detroit is on the upswing, and it has the statistics to back it up. While many had written Detroit off as a once-great city gone south, the Motor City isn’t giving up without a fight. With city-wide rejuvenation projects and increasing job availability, the Metro area has been hard at work to bounce back from its economic setbacks.
The fight hasn’t gone unnoticed.
Investors have been paying close attention to Detroit’s exploits and have begun quietly snapping up real estate investment opportunities left and right. In fact, over the last year alone over 45,000 investor-driven purchases took place in just the single-family housing market. The city has also been making lists across the real estate industry, getting even more attention from smaller, private real estate investors across the nation.
So, what are the main drivers behind this sudden interest in Detroit real estate?
Job creation is the first and foremost.
Detroit has been welcoming changes to the local job market for the last five years. With low real estate costs, low cost of living rates, and increasing tax benefits for companies offering new jobs to the area—Detroit has been adding available jobs to their market in droves. In fact, in 2015 the Metro area added over 80,000 new jobs in a wide range of industries.
This outpouring of new and available jobs in some of the top fields has been drawing transplants to the Detroit area in excess. The second driving force behind Detroit’s sudden resurgence is the focus on the downtown area. Job availability is great and low cost of living is a perk, but to truly convince people to live, work, play, and invest in an area you need amenities. Quality of living trumps everything in the real estate industry. Thankfully, Detroit is well on its way to success with several large investments occurring throughout the downtown area, including revitalization projects, cultural additions, and multiple sports additions. If Detroit maintains its current state of flourish, it could be on the path to rival similar urbanized cities across the US.