Investors Avoiding Michigan are Missing Out Right Now — Big Time

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.

 

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. 

 

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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!

The 7 Best Detroit Neighborhoods to Invest In Right Now

Reports of Detroit’s death were premature, and then some. 

 

Pummeled by the 2008 recession, Detroit entered a period of severe decline. Crime, job-loss, population flight…  You couldn’t give Detroit houses away. Many went so far as to predict that it would never recover, as if this heritage city would somehow sink into the Great Lakes, never to be seen again.

 

Well, never bet against the Motor City. As we have laid out in a series of articles, Millennials are flooding into the city. Investors who bought five years ago have seen their property values more than double. Jobs are coming back, and the city is investing in infrastructure. In short, if you want to get into a boom market on the ground floor, Detroit is the place to do it.

 

Of course, emerging from a decline can be a bumpy ride. Large parts of Detroit have a long way to go. Location matters, as ever, when it comes to real estate investing. In an emerging market like Detroit, you have to pick the right neighborhood to invest in to get the growth without the growing pains. 

 

MartelTurnkey has backed up the truck in Detroit, and we’re scooping up all the property we can. Here are the neighborhoods where we’re doing it — our picks for the seven best Detroit neighborhoods to invest in right now.

1. Eastpointe 

This cheerful bedroom community northeast of downtown shows no sign of the decay and neglect that characterized Detroit’s worst neighborhoods at its nadir. Consisting of more homeowners than renters, the diverse residents display immense pride of ownership and robust community spirit. 

 

Spread out and quiet, it nevertheless enjoys better-than-average nightlife and restaurants for a suburb of this size, as well as several popular summer festivals.

2. Oak Park

Sitting on the border of several far more expensive neighborhoods, the sleepy suburb of Oak Park enjoys spillover from its ritzy neighbors in the form of schools, safety, parks, and excellent city services. Residents banded together during the pandemic, fostering a significant sense of togetherness amongst its 30,000-odd inhabitants.

3. Hazel Park

Residents of the small suburb of Hazel Park love how walkable and manageable the pocket community is. Its easy highway access makes it an attractive choice for commuters, proving to be an area not to be overlooked.

4. Southfield

Young professionals flock to Southfield in search of safe, attractive, tree-lined streets where they can walk their dogs in peace. Southfield Town Center is also a major commercial center of the Detroit Metro, with 27,000,000 square feet of office space contributing jobs to the local economy. 

5. Redford

To the west of Detroit, Redford Charter Township is a close-knit, family-friendly community with a higher-than-average median income. It’s a good area for landlords to invest in because of the higher quality tenants.

6. Bagley

Due north of Detroit, Bagley is a haven of large, historic, well-maintained homes that are currently appreciating quickly. Since we have recently added appreciation rates to our calculations, we are always on the lookout for properties around this area.

7. MorningSide Sub 

Morningside Sub” is highly recommended due to its prime location nudged up against the East English Village which is one of the nicest and most prestigious neighborhoods in Detroit. Most houses are valued over $200,000. A grand revitalization plan is underway in the east side of Detroit and this suburb is ripe for the taking.

 

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If you’re interested in buying one of our cherrypicked turnkey rentals in one of these seven excellent neighborhoods, reach out to MartelTurnkey today. Detroit is a hotbed of opportunity for investors of every budget.