Detroit Multifamily Market Report
2024 Investment Forecast
Select Suburbs Maintain Tight Vacancy, Improvements
Downtown Could Revive Renter and Investor Interest
Renter demand for top-tier units limits new supply pressure. From December 2019 through September 2023, the median price of a single-family home in Detroit rose by 40 percent, outpacing apartment rent growth by 10 percentage points. The rising cost of homeownership has led many residents to remain in the renter pool, particularly in suburban areas that offer larger floor plans. Livingston County, together with the city of Novi, recorded one of the lowest vacancy rates exiting 2023, reflecting growing renter demand in an area of localized population growth. Households staying in the renter pool longer are also benefiting Class A fundamentals metrowide. The rental tier was the only property class to note vacancy compression in 2023, and as such, heightened construction appears warranted. Looking beyond 2024, however, Detroit has its challenges. Despite positive signals for luxury space, Detroit’s declining population will have an adverse effect on overall apartment demand long-term. During the next five years, the metro is expected to lose over 60,000 residents on net, a headwind for vacancy going forward.