Home Sale Prices In Detroit Have Gone Up Drastically
The city of Detroit has given rise to many American icons, including Alice Cooper, Stevie Wonder, and Ford Motor Company. If you're looking to move to the next up-and-coming area, Detroit, Michigan could be a bold but worthy investment. While this idea may surprise some prospective homebuyers, but the automotive and tech industries are continually booming in Detroit, which is a major draw for young people, investors, and workers alike, explains Upgraded Home. The cost of living in Detroit is also significantly lower than in the rest of the country; everything from food to entertainment and transportation is relatively affordable. Unfortunately, the city of Detroit still holds a reputation for poorly funded infrastructure, high crime rates, and bitterly cold winters.
Even so, median home prices in Detroit have followed suit with the rest of the country, rising by nearly 53% in the last four years. The city of Detroit is becoming a more popular place to live, with some people predicting that gentrification and new investments will increase the value of previously passed-over areas, notes Detroit Free Press. Prices of homes in Detroit could also be rising due to demand from budget-savvy buyers, as an increasing number of millennials, 82%, say they're willing to purchase a fixer-upper home in 2022, compared to just 68% in 2019 (via Leaders).
You can still find great deals in Detroit
The cost of homes in Detroit has had some interesting ups and downs. Home prices have tended to peak during the summer months, perhaps because the frigid winters deter people from moving to or within the icy city. Although home prices can rise and fall dramatically in the span of a year, the overall trend from 2018 to today shows that homes in Detroit are becoming more valuable. In early 2018, you could easily purchase a house in Detroit for as little as $115,000. Now, it's more common to see houses in the $200,000 range.
With comparable houses in other cities going for $500,000 or more, $200,000 may seem like a steal. The abundance of empty properties in Detroit still keeps the prices much lower than they are in the rest of the country, but there are some caveats to purchasing these cheap houses. Many of the discounted homes have been abandoned for years, with obvious signs of damage, neglect, and thievery. Purchasing rules often require buyers to prove they are actually living in the home and making renovations within 15 days of purchase, explains 9 News. If you're willing to take on some risk and invest in a booming area, you may still be able to find an amazing deal on a home in Detroit despite rising prices.