Detroit

MIDetroit-Warren-Dearborn

Real Estate Market Analysis

Q3 2025 Report
$92,746 (June 2025)
Median Home Price
~620,000 (city); ~4.3 million (metro area)
Population
~$37,000 (city, recent estimates)
Median Income
Detroit Public Schools Community District: 2/10 (GreatSchools, varies by school)
School District Rating

Market Overview

Property Values

$92,746 (June 2025)
Median Home Price
$72 (June 2025)
Price per Sq Ft
+9.8% (median sold price YoY); +0.1% (average home value YoY)
YoY Change

Market Performance

Days on Market27 days (June 2025)
Market TypeTransitioning from seller's to more balanced, but still competitive with low inventory
Months of SupplyNot specified, but inventory up 16.7% MoM (June 2025)

Sales Activity

Sales Volume2,781 homes for sale (June 2025), up 16.7% MoM
Metro AreaDetroit-Warren-Dearborn
Population~620,000 (city); ~4.3 million (metro area)

Economic Indicators

Employment & Growth

Unemployment RateNot specified for 2025; historically above national average but improving
Job Growth RateNot specified for 2025; recent years show modest growth
Median Household Income~$37,000 (city, recent estimates)

Major Employers

  • Ford Motor Company
  • General Motors
  • Stellantis (Chrysler)
  • Henry Ford Health System
  • DTE Energy
  • Rocket Companies

Demographics

~620,000 (city); ~4.3 million (metro area)
Population
35.2 years (city estimate)
Median Age
Stabilized, slight increase for first time since 1950s[1]
Population Growth
~15% bachelor's degree or higher (city)
Education Level

Family Composition

Mix of singles, young families, and multi-generational households

Key Industries

AutomotiveHealthcareFinance/FintechEducationLogistics

Education

School District

Detroit Public Schools Community District: 2/10 (GreatSchools, varies by school)
District Rating

Top Schools

  • Renaissance High School
  • Cass Technical High School
  • Detroit School of Arts

Higher Education

  • Wayne State University
  • University of Detroit Mercy
  • College for Creative Studies

Infrastructure & Development

Major Projects

  • Hudson’s Site redevelopment (downtown mixed-use)
  • Michigan Central Station tech campus (Ford mobility hub)
  • Joe Louis Greenway (citywide trail system)

Transportation

  • QLine streetcar expansion
  • I-94 and I-75 corridor upgrades

Planned Developments

  • Riverfront revitalization
  • Affordable housing initiatives

Lifestyle & Amenities

Recreation

  • Belle Isle Park
  • Detroit Riverwalk
  • Eastern Market

Dining & Entertainment

  • Downtown/Midtown restaurants
  • Greektown Casino
  • Little Caesars Arena

Cultural Attractions

  • Detroit Institute of Arts
  • Motown Museum
  • Fox Theatre

Investment Analysis

Investment Opportunities

  • Low entry prices relative to national average
  • Strong rental demand in urban core
  • Neighborhood revitalization projects

Growth Outlook

Cautiously optimistic; steady appreciation expected in revitalizing neighborhoods

Market Risks

  • Affordability crunch for locals[1]
  • Competition from institutional/corporate buyers[1]
  • Property condition/rehab costs

Rental Market

Robust demand, especially for renovated single-family and multifamily units

Marketing Intelligence

Target Demographics

  • First-time buyers
  • Young professionals
  • Investors (local and out-of-state)
  • Families seeking affordability

Marketing Channels

  • Zillow, Rocket Homes, Realtor.com
  • Facebook/Instagram ads
  • Local real estate events

Pricing Strategies

List slightly below recent comps to spark bidding wars in hot neighborhoods

Common Objections & Response Strategies

Objection: Can't compete with cash/corporate buyers

Response Strategy:

Encourage pre-approval, flexible closing, and escalation clauses; target less competitive neighborhoods.

Objection: School quality concerns

Response Strategy:

Highlight top-performing magnet/charter options and proximity to private schools.

Objection: Property condition uncertainty

Response Strategy:

Recommend thorough inspections and connect buyers with reputable contractors.

Professional Recommendations

1

Educate buyers on fast-paced market and need for pre-approval.

2

Network with local contractors and lenders for value-add deals.

3

Leverage digital marketing and virtual tours to reach remote buyers.

4

Focus on neighborhoods with ongoing or planned redevelopment.

5

Prepare sellers for multiple-offer scenarios and guide on pricing strategy.

Competitive Analysis

Comparable Markets

  • Cleveland, OH
  • Buffalo, NY
  • St. Louis, MO

Market Positioning

Attractive for investors and first-time buyers seeking value and appreciation potential

Competitive Advantages

  • Lower entry prices than most major metros
  • Strong cultural and economic revitalization
  • High rental yields

Price Comparison

Detroit median home price ($92,746) is significantly below Michigan state median ($269,667)[4] and national median.

Investment Metrics

6–10% (varies by neighborhood and property condition)
Cap Rates
8–12% gross yields typical for renovated SFR/multifamily
Rental Yields
~8–12 (favorable for investors)
Price-to-Rent
Strong in value-add and stabilized rental properties
Cash Flow
Modest to strong in revitalizing areas; 0.1–10% annual depending on location
Appreciation

Buyer Journey Insights

First-Time Buyers

Face competition from investors; need strong pre-approval and flexibility.

Move-Up Buyers

Can leverage equity gains but may face limited inventory in higher price tiers.

Downsizers

Opportunities in renovated condos and townhomes downtown.

Investors

Favorable entry prices and rental yields; must act quickly in competitive segments.

Relocators

Attracted by affordability and urban revival, but should research neighborhoods carefully.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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