In exciting real estate news this past week, CNBC reported that Detroit saw the largest annual price gain in real estate, surpassing Miami.  Over the past several years, MartelTurnkey has successfully partaken in real estate opportunities in specific pockets of metro Detroit. Low entry prices and strong cash flow are among the reasons we are bullish on Detroit and its bedroom communities; in particular Eastpointe and Hazel Park. Keep reading to learn all about why we have chosen to offer turnkey rentals in and around Detroit, MI and why we think you should add these properties to your real estate portfolio. 

 

Let’s Talk About Detroit

 

It wasn’t too long ago that everyone wanted to wash their hands of Detroit. Amid automakers’ exits and unchecked drug activity, houses in Detroit 15 years ago were selling for rock bottom prices that hit $500.  Of course, a buyer would have to be willing to confront a den of drug users or violent criminals in order to take possession of a property boarded up with plywood and covered with graffiti. We wouldn’t blame anymore for staying away at that point. But this isn’t then, and Detroit has turned itself around. 

 

The growth of the Detroit economy is expected to continue into 2028 and beyond, thanks to a resurgence of confidence and corporate money. According to the University of Michigan, “The Detroit Economic Outlook for 2022-28 forecasts a jobless rate below 6% on a sustained basis in 2027 and 2028, and residents’ total inflation-adjusted income per capita to grow by nearly 6% during the forecast period—stronger than the state as a whole.” 

 

Now is definitely the time to get into the Detroit real estate market. In 2023, Detroit saw the largest annual price gain, overtaking Miami. Home prices leaped 5.2% in November of 2023, fueled by a decrease in mortgage rates. At MartelTurnkey, we’ve identified our favorite Detroit-area cities for real estate investment.

 

Spotlight on Eastpointe, MI

 

Eastpointe, MI is a suburb of Detroit that’s only 13 miles northeast of the Auto City. As of early 2024, Eastpointe, Michigan presents a compelling picture for real estate investors. The city, known for its affordable housing, has shown positive trends in the real estate market.

 

The median listing home price in Eastpointe was around $149.9K in December 2023, reflecting a significant upward trend of 12.1% compared to the previous year. This price point makes it a reasonably affordable option in the Michigan real estate landscape. The median sold home price, meanwhile, was approximately $145K, and the median listing price per square foot stood at $128. This pricing positions Eastpointe as an accessible market for both first-time and seasoned investors.

 

The market in Eastpointe has been characterized as a seller’s market, indicating that demand outstrips supply. Homes sold for nearly their asking price on average, with a sale-to-list price ratio of about 99.31%. The average time on the market for homes was around 37 days, which is a slight increase compared to the previous month but a decrease from the previous year. This dynamic suggests a relatively quick turnover for properties, a positive sign for investors looking to sell or rent out properties.

 

Spotlight on Hazel Park, MI

 

Dubbed the “Friendly City,” Hazel Park is one of the fastest growing cities in metro Detroit. Quickly evolving as a sought-after city by young families and millennials due to its convenient location, Hazel Park is experiencing a vibrant expansion in retail, local bars, restaurants, and its proximity to downtown Royal Oak and Ferndale are bonuses. Residents enjoy close proximity to many excellent regional attractions, local recreation opportunities and sporting events, too.  

 

In terms of real estate, the median sold home price is around $170K. Very affordable and attractive. There are more buyers than there are homes available, which means home values will be rising, so if you see something you like, act swiftly.

 

At MartelTurnkey, we’re constantly evaluating cities and neighborhoods so we can help our investors get in early on upcoming markets. Check out our turnkey real estate properties in Detroit and surrounding areas right now. And, if you have any questions, be sure to let us know.