Detroit Multifamily Market Report

After strong 2024, shifting demographics soften demand outlook. The metro recorded its most completions in 2024 since at least 2000, and deliveries this year are anticipated to match that high. Although a 1,550-unit project in Southfield accounts for much of the new supply this year, the market still faces upward vacancy pressure. Population declines resumed in early 2025, led by the steepest quarterly drop in the 20-34 age group since the same period in 2008. This coincided with the market losing over 4,000 jobs, most of which were in the manufacturing and hospitality sectors, ultimately slowing leasing activity across the metro. As such, net absorption in the first quarter of 2025 drastically pulled back to roughly 14 percent of the previous span’s level, signaling further potential hurdles.