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Market Report

Detroit Multifamily Market Report

2025 Investment Forecast

Despite Additional Development,
Detroit Delivers Sustained Revenue Gains

Record apartment openings test the market amid shifting renter trends. While developers will deliver a record 2,700 units in 2025, overall vacancy will only inch up slightly. With over 80 percent of Detroit’s apartments built before 2000 — above the national share — options for newer units are relatively limited. Overall occupancy levels are supported by a generally strong labor market, as unemployment enters this year below the past-decade average of 5.2 percent. Ford’s new Mobility Innovation District in Corktown is expected to ultimately create 5,000 jobs, bolstering renter demand in nearby downtown and surrounding suburbs. Meanwhile, rising living costs are shifting some renters toward lower-priced suburban locales — a trend noted by some developers. After experiencing one of the largest vacancy drops last year, Southfield is slated to receive 1,500 new apartments in 2025, significantly more than average. This will test the submarket’s ability to absorb new supply. More broadly, Detroit’s historically less active development record will help sustain below-trend vacancy rates.
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