Michigan Real Estate News

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Southeast Michigan Housing Market Increases Continue

Low inventory and increased demand caused the upswing of the 2021 Southeast Michigan housing market. Some areas in the city of Detroit saw the biggest increase in sale prices. One area’s prices jumped an incredible 68%. Detroit had more sales than anywhere in the region, with 2021 marking an 11.1% increase over 2020 and a median value increase of 33.6%. One broker’s theory is that the increase in sales in the city comes from landlords who decided they wanted to get out when the Duggan administration enforced certificates of compliance in order to be eligible for full distributions of coronavirus relief funds.

 

Construction Begins On The Former Joe Louis Arena Site

Construction is due to begin on the former Joe Louis Arena site for a new residential apartment tower. Several pieces of heavy-duty equipment arrived on late Wednesday afternoon. Colasanti Construction Services Inc. prepped for initial work on the 24-story apartment tower, drilling 100-foot deep caissons. Sterling Group applied for a permit for the building, but no information has been released by the city pending the outcome of the permit review. Part of the vision for the site includes an apartment tower called The Louis, with 500 studio and one-bedroom units. Specific plans for the property have not been made public since Sterling Group acquired the property. Previously, the site had been discussed as a mixed use development, potentially with a hotel.

 

 

 

 

Detroit’s Commercial Property Transactions Lower Than National Average

Nationally, commercial property transaction volume broke records last year. But in metro Detroit, that was not the case. Last year wasn’t a bad year for property deals in Detroit; there were $1.9 billion in sales across 3,678 deals. 2021 was the fourth-highest year since 2006. Low cap rates, inflation hedging helped to fuel the surge in commercial acquisitions. Property buyers are expecting appreciation in the next few years. Rent growth in multifamily apartments and the industrial, warehouse and distribution sectors are also adding to value growth.