New Report Offers Insight into Detroit’s Rental Housing

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Information on the number of rental properties in Detroit is limited and creates issues concerning improvements to housing conditions and reduction of lead exposure. Most landlords in Detroit own one or two properties, making up about 50% of the units in the city.  Of that number, only 2% have registered properties within the city’s formal rental system. The think tank, Detroit Future City, released an analysis on Wednesday that breaks down landlords into categories using the assessed value of the property, corporate ownership, blight violations, taxpayer’s location, property acquisitions and the number of units they own. Tenant advocates continue to raise concerns about evictions and unaffordable housing. The goal is to support landlords and enable them to become compliant with healthier housing conditions.

 

Southeast Michigan’s Housing Market Is Stabilizing

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Southeast Michigan’s housing market is becoming more stable. The number of buyers is decreasing due to growing interest rates and high home prices. Sales of homes in southeast Michigan in July were down by almost 20 percent from July of last year. Pending sales are declining rapidly, and properties are sitting longer on the market. According to the Realcomp report, the costs of buying a home is 80 percent more expensive now than three summers ago. Detroit is ahead of the rest of the region for growing housing prices. The median price of a home in Detroit has grown 38 percent since last year, having surpassed $100,000 for the first time in history.

 

Pilot Program Pays Storefront Owners to Renovate Upstairs Apartments

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Southwest Detroit Business Association’s pilot program grants $8,500 per unit to renovate apartments above commercial spaces. In an effort to expand the number of affordable homes and apartments for city residents, empty and derelict second-floor units are an untapped market. According to Elaina Peterson, a program analyst on the policy and implementation team for the city’s housing and revitalization department, there could be as many as 12,000 unoccupied apartments above stores and restaurants in Detroit. If they were updated and made livable, they would make a huge impact on the number of affordable apartments as rents and sale prices continue to increase. The program is one part of a $203 million housing plan that intends to create new rental housing, help renters to become homeowners, and improve the quality of existing rental units.

 

 

Three Dispensaries and Processing Facility to Open in Grand Rapids

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Tommy Nafso, former metro Detroit lawyer and state regulator, and Darel Ross, a Grand Rapids entrepreneur, have partnered to open three cannabis dispensaries and a process facility. They will open the first of the three Noxx dispensaries at 2440 28th St. NW in Grand Rapids this month.  A soft launch is planned for Aug. 22, along with a grand opening September 10. The second dispensary will open in late September. The processing and dispensing facility will be Noxx’s main production and will open in mid-November. Noxx’s three dispensaries will be the most operated by one company in Grand Rapids. The partners plan to hire 150 employees across the three locations.

 

$116 Million Amphitheater Approved by Grand Rapids Leaders

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In April, the Grand Rapids City Commission approved a proposal by the Grand Rapids-Ken County Convention/Arena Authority (CAA) to buy over 11 acres of land to build an amphitheater. At its board meeting on Friday, the commission approved a memorandum of understanding with Grand Action 2.0 (GA2.0) that outlines the terms of partnership between CAA and Grand Action 2.0 in developing the amphitheater. The proposed $116 million amphitheater will seat 12,000. It will sit at the southwest edge of downtown Grand Rapids and be slightly smaller than Pine Knob Music Theater in metro Detroit. The CAA is a seven-member board that administers DeVos Place, DeVos Performance Hall and Van Andel Arena. Grand Action 2.0 is an economic development group chaired by Carol Van Andel, Dick DeVos and Tom Welch, Michigan’s regional president of Fifth Third Bank.

 

Upper Peninsula State Representative Requests AG Investigation

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Rep. Sara Cambensy, D-Marquette has requested that the Michigan Attorney General Dana Nessel investigate an Upper Peninsula development company headed by a Northern Michigan University board member. The firm states that Cambensy’s claims are “meritless and reckless.  Cambensy wrote a 13-page letter on July 28, sounding an alarm about a potential conflict of interest and misuse of state and local money in regards to the former Marquette General Hospital. 

 

 

Rocket Mortgage’s Issues Forecasted for Other Mortgage Lenders

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Rocket Mortgage’s struggles are evident in the earnings report released Thursday evening by Rocket Companies Inc., and they are not likely to be unique as other mortgage companies face challenges. According to Rocket CFO, Julie Booth, the rise in rates had a big impact on rate and term refinance demand. The 30-year fixed mortgage rate has experience its steepest and fasted rise in 50 years. While drastic, Rocket’s diminished earnings were not surprising. Henry Coffey, an analyst with Wedbush Securities, says the same will most likely be true for United Wholesale Mortgage and Home Point Financial when they report earnings next Tuesday and Thursday. Detroit’s Rocket Mortgage is the nation’s largest mortgage lender, generating a record $351 billion in closed loan volume in 2021.

Rent And Occupancy Rates Are on The Rise in Metro Detroit

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Apartments are a hot commodity in Detroit with supply falling short of demand. Rent costs and occupancy rates in the metro area are increasing. According to the Detroit Multifamily Real Estate Figures, occupancy rate is at 96 percent for multifamily residences in Detroit.  The asking rental rate per square foot has increased from $1.64 to $1.72 over the last six quarters. Supply and demand issues, as well as new developments and redevelopment of existing property, are impacting rental rates. Suburban rental rates follow a similar pattern.

 

Rochester Hills Robotics Company Plans $86 Million Expansion

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Fanuc, the Rochester Hills-based manufacturer of robotics, is planning an $86 million expansion. Within the last week, they’ve purchased the former Thomas M. Colley Law School campus for $18 million.  The purchase included the former law school building and an adjacent 67 acres. The company is planning a 655,000-square-foot plant on the acreage. The company currently employs 1,200 in Michigan; this expansion will add another 100 workers. The new purchase follows on the heels of the company’s 461,000-square-foot North Campus in Auburn Hills in October 2019.

 

Ann Arbor Planning Commission To Hold Hearings On New Proposals

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The Ann Arbor Planning Commission will hold public hearings on three new development proposals on Wednesday, August 3 at 7:00 p.m. The projects include a four-story residential building with 185 new housing units, the reimagining of The George mixed-use apartment and retail complex, and a special-exception use proposal for a childcare center. The new housing units would redevelop the University Inn site. The reimagining of The George would convert 23,462 square feet of ground floor retail space to 42 residential units. The proposal for the childcare center would repurpose an existing building at 1301 Morningside Drive in northwest Ann Arbor.