Detroit is on Fire!
While some cities may have struggling real estate markets at the moment, Detroit is not one of them. In fact, the Motor City’s real estate market is thriving, especially for investors like you. As more apartment dwellers seek to move into homes, most are choosing to rent rather than buy. With property values on the increase, now is the time for you to go all-in and expand your portfolio with turnkey rentals in Detroit, Michigan.
The Millennials Have Arrived
In Detroit, population growth has been triggered by the arrival of millennials, many of whom are beginning new careers and seeking quality rental housing they can settle into for several years. The most populous city in Michigan, Detroit has the second-highest growth in population for people ages 24-35 when compared to similar U.S. cities, meaning you’ll have a built-in market of people eager to sign leases on your turnkey single-family properties.
A Growing Job Market
As we’ve explained in previous posts, one indicator of a strong investment market is good employment opportunities. People tend to want to live where the highest-paying jobs are located, and Detroit is no exception. The headquarters of eleven Fortune 500 companies, Detroit finds itself leading the way in technological innovation and productivity. Though known primarily as an auto industry city, it also has thriving industries in healthcare, defense, information technology and logistics.This means that even more people will soon be calling Detroit their new home and be in the market for housing.
Opportunity is Knocking
If you’ve been hearing a strange noise each time you start thinking about investing in the Detroit real estate market, that’s because you’re hearing opportunity knocking. According to most experts, the real estate market in Northern Michigan is hotter than ever. Ironically, this is partially due to many people lacking the credit needed to buy a home at today’s prices. Because of this and other factors, more than 50% of Detroit households rent single-family homes rather than buy them.
Great Return on Your Investment
When you invest in a new piece of property, you want to know you’ll see a high return on your investment. In Detroit, that’s almost sure to happen. Based on data from Realtor.com, the value of Detroit homes increased by almost 32% since just last year, and over the past five years home values have increased by well over 100%, demonstrating the strength and stability of the city’s real estate market as it pertains to investors.
Highly Popular Single-Family Rentals
When you put together the words “skyrocketing” and “single-family rentals,” you know you’ve got a recipe for real estate investment success in Detroit. As stated earlier, many Detroit apartment dwellers are now seeking single-family home rentals. In addition, people ages 24-35 make up almost 40% of the city’s population. This results in a nice combination of high quality tenants that are looking for the exact kinds of turnkey rentals that we offer at MartelTurnkey. As for how much rent people are paying, it varies depending on different neighborhoods. For example, properties in more affordable neighborhoods such as St. Jean and Chene are currently renting for $600-$650 per month, while houses in expensive areas such as Macomb and Downtown Detroit can fetch upwards of $3,000 per month or perhaps more.
Economic Forecasts Predict a Bright Future
As economic forecasters have looked at Detroit’s real estate market over the past year, they have noticed two things that show the market won’t slow down anytime soon. First, the city has undergone a historic change in home prices, resulting in increased value appreciation. Second, its housing affordability levels are still very reasonable, meaning investors can not only reap good gains on return on investment, but can then offer rents that potential tenants will view as affordable.
A Great Place to Live and Work
Finally, Detroit is consistently ranked as one of the best cities in the U.S. to live and work. Whether it’s Forbes calling the Motor City a great place for business and careers or U.S. News and World Report naming it a great place to live and retire, Detroit has pro sports, performing arts, and much more that continues to attract people to the city each and every year. As a turnkey real estate investor in Detroit, you’ll never be short of eager applicants hoping to become your tenants.
Don’t miss the boat on investing in Detroit. We currently have several turnkey rental properties available in Detroit and in surrounding bedroom communities. Check out our available turnkey rentals for sale and find one that interests you. Then, click on the “Download Financial” button so you can see exactly what you can get for your investment in Detroit. After that, contact us so we can get the ball rolling on your investment. We look forward to working with you!
“What I liked about Martel Turnkey compared with other turnkey companies is that they rented the property out before selling it to me. They signed the lease and sent it over for me to review before closing. This is something that other turnkey operators haven’t done for me in the past.”
~ Steven, Long Beach, CA