Cornerstone Development Group

Detroit’s housing market is rebounding after decades of decline. Home values are increasing steadily—Zillow reports YoY price increases of 6–8% as of early 2025, depending on the neighborhood. The city still offers some of the lowest entry prices among major U.S. cities, giving investors room for both appreciation and cash flow.

Detroit consistently ranks among the best U.S. cities for rental yields. In many neighborhoods, monthly rents exceed 1% of the property’s value—ideal for the 1% rule. Gross yields of 10–13% are possible in the right zip codes, especially with Section 8 and workforce housing demand.

Billions are being invested into Detroit’s renewal. Projects like the $1.4B Hudson’s Tower, Michigan Central (Ford’s mobility innovation campus), and neighborhood corridor grants (Livernois, Grand River, etc.) are modernizing the city. New apartments, hotels, and commercial spaces are reshaping the landscape.

Detroit’s economy is anchored by auto and healthcare giants. Ford, GM, Stellantis, Henry Ford Health, and DMC employ tens of thousands. The transition to EVs has brought new tech talent and jobs. Amazon also has a growing logistics footprint in the metro area.

The city is becoming a hub for EV and battery tech. Ford’s Michigan Central Station will house 5,000+ employees focused on mobility R&D. The Factory Zero plant and nearby Ultium Cells battery facility support thousands of new skilled jobs, increasing demand for housing.

Many Detroit properties—especially in B and C-class areas—can be acquired for $50K–$100K. These prices are well below national averages, allowing for all-cash buys or financing with low risk exposure. Renovation and value-add strategies can quickly increase asset value.

Downtown and Midtown are attracting younger renters and buyers. Entrepreneurs, remote tech workers, and artists are relocating due to Detroit’s affordability and growing cultural scene. This demographic shift supports long-term rental demand and community vibrancy.

Infrastructure dollars are flowing into roadwork, green spaces, and public transport. The QLine streetcar, Joe Louis Greenway, and new bike-friendly developments are connecting neighborhoods. These improvements enhance livability and long-term property value.

Detroit offers multiple investment tools:

Land Bank auctions for deeply discounted properties

Neighborhood Enterprise Zones (NEZ) for tax relief

Opportunity Zones attracting equity capital
These reduce investor costs and increase ROI.

Detroit sits on the busiest U.S.-Canada commercial border. The new Gordie Howe International Bridge (opening in 2025–26) will expand trade with Ontario, creating jobs in warehousing, transport, and logistics—all of which drive demand for nearby housing.