Humans are slow to change. Once we make up our minds about something, we tend to dig in — even when evidence starts flying in the face of the narrative we have adopted. Investors Avoiding Michigan is a good example of that.
Case-in-point — Michigan. Investors stuck on a vision of its post-recession decline are ignoring obvious signs of its remarkable recovery. The truth is, very few economic declines are permanent, especially in major population centers.
We keep hammering on this point, but it bears repeating — real estate does not always go up in value steadily! It runs in cycles. Sometimes big ones, sometimes dramatic ones. Remember, California and Florida busted in the Great Recession too … only to boom back bigger than ever.
Michigan had a big cycle low … but when we see a big cycle low in a city with strong fundamentals, we typically expect a big rebound.
MartelTurnkey has made no secret that we’re investing in Detroit, big time. We’re also on a mission to spread the word to our investing partners — and prospective investment partners — to join us.
We understand the trepidation … but the numbers don’t lie. And they keep telling us we made the right choice. Here’s what we’re seeing that make us more confident than ever about the killer returns available to those who go all in on Michigan:
Michigan is #1 in Economic Improvement Since the Pandemic
According to Bloomberg, Michigan has lead the entire country in terms of economic improvement since 2020, beating out the likes of Indiana, Arizona, Utah, and Tennessee for the #1 spot.
Bloomberg also notes that Michigan has far outpaced the national average in terms of employment recovery — a 25% surge in nonfarm employment, compared to the national average of 14.3%.
Home values, personal income, mortgage health, and publicly-traded equities within the state have all appreciated in excess of national averages, while the AA-rated state bonds have far outperformed its regional neighbors as well as outperforming the entire municipal bond market.
Michigan Is Emerging as a Key Tech Hub
Detroit and Ann Arbor are both giving Silicon Valley a run for its money. Google, Microsoft, Apple, IBM, and RocketMortgage all have headquarters there. So does Amazon, which opened a hub in 2015 and then expanded it in 2020. Apple chose Michigan State University as its partner for its first Apple Developer Academy.
Unsurprisingly, Detroit is #1 in the nation for automobile R&D … but according to Growjo a majority of the fastest-growing companies in Detroit are tech companies. Additionally, the Detroit Metro is has the #2 largest concentration of engineering talent, as well as the #3 best tech talent cost vs. quality ratio, making it one of the most valuable talent markets for tech business.
Michigan is currently #1 in the country for venture capital growth. As if that weren’t enough, Detroit has shown an uncanny knack for fostering Unicorns — jargon in the tech world that means a startup valued at over $1 billion (a big deal among startups). Detroit is home to four Unicorns — Rivian, StockX, OneStream, and Duo Security — making Michigan one of only ten states with more than one Unicorn.
From a Budget Deficit to a Budget Surplus
The solvency of a state’s government directly correlates with its economic strength. By this metric, Michigan is a huge success story. In her 2022 State of the State address, Gov. Gretchen Whitmer announced that the state has gone from a $3 billion projected deficit to a $3.5 billion projected surplus.
It’s time to bet big on Detroit. MartelTurnkey is in the trenches — and we cordially invite you to join us. If you want to participate with us on one of the smoking-hot Detroit area deals we’re currently developing, reach out to us today.
We’re not kidding — these deals are going fast, so the sooner you reach out to us, the better!