Detroit, MI
APPRECIATION RATE TRENDS AND HOUSING MARKET DATA




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Detroit, MI Real Estate Data

Source & Methodology

Analytics built by:   Location, Inc.

Raw data sources:   American Community Survey (U.S. Census Bureau), U.S. Department of Housing and Urban Development, Federal Housing Finance Agency.

Date(s) & Update Frequency:
  • Home Values, Rents: Reflects Q2 2017. Updated quarterly.
  • Setting, Housing Stock, Homeownership: 2015 (latest available). Updated annually.

Methodology:   NeighborhoodScout uses over 600 characteristics to build a neighborhood profile… Read more

Detroit Housing Market Information

With 677,116 people, 255,740 houses or apartments, and a median cost of homes of $48,603, house prices in Detroit are some of the most affordable in Michigan as well as the nation.

Single-family detached homes are the single most common housing type in Detroit, accounting for 65.84% of the city's housing units. Other types of housing that are prevalent in Detroit include large apartment complexes or high rise apartments ( 17.00%), duplexes, homes converted to apartments or other small apartment buildings ( 9.60%), and a few row houses and other attached homes ( 7.11%).

The most prevalent building size and type in Detroit are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 48.52% owning and 51.48% renting.

At the end of World War II, American soldiers returned home triumphant and, with the help of the GI Bill, built homes by the millions on the edges of America's cities. These homes were predominantly capes and ranches, modest in size, but built to house a growing middle-class as the 20th century became the American century. Detroit's housing was primarily built during this period, from the '40s through the '60s. A full 54.88% of the city's housing hails from this era. Other housing ages represented in Detroit include homes built before 1939 ( 33.21%) and housing constructed between 1970-1999 ( 8.62%). There's also some housing in Detroit built between 2000 and later ( 3.29%).

Vacant housing appears to be an issue in Detroit. Fully 30.04% of the housing stock is classified as vacant. Left unchecked, vacant Detroit homes and apartments can be a drag on the real estate market, holding Detroit real estate prices below levels they could achieve if vacant housing was absorbed into the market and became occupied. Housing vacancy rates are a useful measure to consider, along with other things, if you are a home buyer or a real estate investor.

Detroit Home Appreciation Rates

Detroit's appreciation rate notably has been below the national average for the last ten years. The average annual home appreciation rate in Detroit during the period has been just -1.62%, which is lower than 80% of US communities.

Appreciation rates are so strong in Detroit that despite a nationwide downturn in the housing market, Detroit real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Detroit appreciation rates continue to be some of the highest in America, at 8.32%, which is higher than appreciation rates in 84.47% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Detroit. Detroit appreciation rates in the latest quarter were at 2.64%, which equates to an annual appreciation rate of 10.97%.

Relative to Michigan, our data show that Detroit's latest annual appreciation rate is higher than 70% of the other cities and towns in Michigan.

One very important thing to keep in mind is that these are average appreciation rates for the city. Individual neighborhoods within Detroit differ in their investment potential, sometimes by a great deal. Fortunately, you can use NeighborhoodScout to pinpoint the exact neighborhoods in Detroit - or in any city or town - that have the best track record of real estate appreciation, by the latest quarter, the last year, 2 years, 5 years, 10 years, or even since 2000, to assist you in making the best Detroit real estate investment or home purchase decisions.

Average Home Values

 

Median Home Value:
$48,603

Detroit, MI HOME PRICES

Value Range
> $1,207,000 0.3
$906,001 - $1,207,000 0.1
$603,001 - $906,000 0.4
$483,001 - $603,000 0.3
$362,001 - $483,000 0.7
$242,001 - $362,000 1.7
$121,001 - $242,000 9.3
$60,001 - $121,000 28.2
$0 - $60,000 58.9

Very Low for MI
Very Low for Nation

Value Relative to Nation Value Relative to State
99.4349786287253 99.198717948718

Number Of Homes And Apartments:
255,740

Detroit Appreciation Rates

 
Time Period Total Appreciation Avg. Annual Rate Compared To
MI*
Compared To
America*
Latest Quarter:
2017 Q1 - 2017 Q2
Last 12 Months:
2016 Q2 - 2017 Q2
Last 2 Years:
2015 Q2 - 2017 Q2
Last 5 Years:
2012 Q2 - 2017 Q2
Last 10 Years:
2007 Q2 - 2017 Q2
Since 2000:
2000 Q1 - 2017 Q2
-2.60% -0.15% 2 1
* 10 is highest

Rent & Ownership

 

Average Market Rent:
$1,037 / per month

Homeownership Rate

Homeownership
Owners 48.52
Renters 51.48
Vacant 30.04

Housing Market Details

 

Age of Homes

AGE OF Detroit HOMES
2000 or Newer 3.3
1970 - 1999 8.6
1940 - 1969 54.9
1939 or Older 33.2

Types of Homes

TYPE OF Detroit HOMES
Single-Family 65.8
Townhomes 7.1
Small Apt. Buildings 9.6
Apt. Complexes 17.0
Mobile Homes 0.4
Other 0.0

Home Size

SIZE OF Detroit HOMES
No Bedroom 2.87
1 Bedroom 12.30
2 Bedrooms 26.94
3 Bedrooms 43.42
4 Bedrooms 11.22
5 or more bedrooms 3.25