What Detroit Neighborhoods are Leading the Recovery | Where to Invest
As a local to Detroit and a lifetime Michigan native, I thought I would share what has been happening in the city and how it is impacting residential real estate. The biggest impact on the city has been Dan Gilbert’s focus on buying up Detroit based real estate and relocating his various companies to the city. This has also drawn other companies to relocate to the city bringing even more young people to the city.
The recent increase in companies moving to the city has caused an incredible rise in demand for residential units. In fact, Occupancy levels in the city are close to 100% and according to Market Watch residential prices have increase over 30% in the past 12 months! Market Watch even ranked us the 7th fastest growing city in the country. We’ve even seen studies that highlight there is demand for another 10,000 residential units over the next 5 years in the city of Detroit. Things are so strong in the rental markets that higher end apartment buildings are getting close to $2 per foot, which is significantly higher than the suburbs.
As a real estate investor, this brings great opportunity for people looking to renovate and flip houses. To give you some guidance as to what Detroit markets will rebound the quickest during this recovery, we thought we would highlight a summary of the hottest areas:
The Woodward strip from downtown to mid-town
This strip basically starts at the General Motors and Quicken Loans headquarters through the entertainment district which includes Tigers Stadium, Ford Field and where they will be building the new Red Wings stadium. The strip then continues to Wayne State University.
This is the oldest village in the city of Detroit where the old Tigers Stadium was located. Corktown has a very unique character to it as it is made up of mainly historical single family residences.
This area is located just outside of Corktown and houses some of the best Mexican restaurants in the city, as well as, one of the best grocery stores…the Honey Bee La Comena.
This area is located just to the east of the city where the old Strohs Brewery was located. It is mainly made up of loft style apartments close the Detroit River.
Some other areas to consider are the micro-neighborhoods where the top Automotive Executives build incredible homes just outside of the city. Some of these areas include:
Historical Indian Village
Occupied by primarily doctors, lawyers and business owners, Indian Village is a Historic area that offers family friendly, upscale living with an urban twist. This tight knit community is filled with quaint coffee shops and other stores where residents can find all they need. Among these are the Indian Village Market, and the Food Express Market.
Historical Sherwood Forest
The Sherwood Forest community was established in 1917 and contains 437 beautiful, architecturally stunning homes. Touted as one of the safest neighborhoods in Detroit, association fees include allocation for paid private security patrols.
Palmer Woods Historical District
The Palmer Woods Historic District is a residential historic district bounded by Seven Mile Road, Woodward Avenue, and Strathcona Drive in Detroit, Michigan. There are approximately 289 homes in the 188-acre district.
The University District is a neighborhood located one mile west of Woodward Avenue south of Seven Mile. The University District named for its neighbor to the south, the University of Detroit Mercy.
Boston Edison District
The Historic Boston Edison district is located just a few miles away from Downtown and features some of the city’s most magnificent homes. The neighborhood is situated near several charter schools, and includes a number of family residences with children of all ages.
If you are an investor looking for a once in a lifetime opportunity, you may want to check out the City of Detroit. It’s BACK! Let us know how Team Virkus can help below: