Michigan Real Estate News

Timely  |  Relevant  |  Informative

Hundreds of Metro Detroiters At Risk For Eviction

Detroit tenants behind on their rent because of coronavirus pandemic hardships are no longer protected from eviction, according to Detroit’s 36th District Court. After the CDC’s eviction moratorium was deemed unconstitutional by the U.S. Supreme Court, the Detroit court declined to issue its own moratorium. Hundreds of renters are at immediate risk of eviction. According to census data, 28% of metro Detroit renters and home owners are behind on their rent or mortgage. Organizations and agencies continue to work on connecting tenants with COVID Emergency Rental Assistance funds.

Buying a Home Is The Less Expensive Option in Metro Detroit

According to data from Realtor.com, it’s 14.1% cheaper to buy a home in metro Detroit than it is to rent. Other data suggests that it’s 17.1% less expensive. Detroit lands in 10th place on a list of places where buying a home is more affordable than renting one. The president of RE/MAX of Southeastern Michigan suggest that those numbers don’t consider the other costs associated with owning a home. Low rental inventory and high rental demand, low rental turnover, and low mortgage interest rates have contributed to the trend.

Metro Detroit Home Purchases Decline

According to data from RE/MAX, home purchases in metro Detroit had the fourth largest decline in the country. RE/MAX surveyed metro areas, and Detroit had a 19.6 percent decrease in closed homes in July. Factors that likely contributed to the decline include Michigan’s coronavirus-related lockdown that lifted in June last year, creating a backlog of pending sales that exploded into July. This lifted that month’s 2020 total. Buyers are exercising more caution and questioning the prudence of paying more than the asking price. Add the recent weather and flooding into the picture and potential buyers hesitating while flood-damaged homes are fixed. Limited inventory is also a contributing factor.