Market Report
Detroit Multifamily Market Report
1Q 2026
Suburban Areas Stand Out as High Cap
Rates𠊌ontinue to Facilitate Investment
Demand rising, but stricter policy enforcement a headwind. In 2024, immigration-driven demographic momentum fueled Detroit’s strongest net absorption since 2015. That trend softened in 2025, however, as the metro posted its first population decline since 2022, reflecting outmigration among 20- to 34-year-olds and likely slowing immigration under recent federal policy shifts. These patterns present challenges for apartment demand as new supply is expected to roughly double the long-term annual average for a third consecutive year. The CBD, especially, has struggled to absorb moderate new supply, with vacancy in the mid-6 percent range at the end of last year. Conversely, suburban areas were comparatively tight near 4 percent, well below the historical norm of 6.2 percent. The outlying Novi-Livingston submarket stands out with vacancy near 2 percent in late 2025, ranking among the 10 lowest nationwide for submarkets with 20,000 or more units, while construction activity is poised for a sharp pullback in 2026.
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