The rental market
Detroit is pretty unique when it comes to U.S. cities, and that’s no different for renters. The city’s history of booming and shrinking is still impacting the rental market, as Tom explains.
“When the city was flourishing and expanding, the auto industry enabled a lot of workers to become homeowners, and there were more single-family detached homes in Detroit than anywhere else in the world. There were renters like in all cities, but Detroit wasn’t like Chicago or New York, with a disproportionately small amount of apartment buildings—and that’s still the case.”
Tom continues: “When the market bottomed out several years ago, all the condos and lofts that were built to be sold became rentals overnight, and a lot of qualified buyers opted to rent while looking for the ideal house, usually as close to the neighborhoods they want to live in, so they could get a feel for it.
“Now, because the market is such, properties that were rentals are being sold again, and quality rentals are disappearing. Long-term renters are being given opportunities to buy properties, but many prefer the simplicity of renting and choose to move instead. Unfortunately for tenants, it’s a seller’s market again, and good homes in preferred neighborhoods don’t stay on the market long.
“That said, there are still great duplexes, triplexes, condos, and lofts to rent in the city, with typical rents between $500 and $2,000.”
There are a number of good neighborhoods for renters to look out for, according to Tom.
“Southwest Detroit, home to Detroit’s Hispanic community, is a great option, with affordable properties and excellent bodegas and restaurants within walking distance.
“Eastern Market is attracting many young people new to the city due to its amazing and unusual properties and close proximity to wonderful small businesses and the market itself. Hamtramck is another funky and diverse option with good rental options that are attracting a hip young crowd.
“East of Downtown, historic neighborhoods like Indian Village and West Village have been a good choice for renters for a long time, and they are currently seeing a lot of changes with new businesses opening regularly.
“Though costs are going up in general, in any of these neighborhoods, people can rent great homes inexpensively when compared to other cities.”
Tom says knowing the neighborhood you’re moving to, at all times of the day, and engaging with your neighbors is a must. “Always drive through the neighborhood you want to rent in, both during the day and the evening, so you see what it is like. Always, always, ALWAYS know your neighbors. They will watch out for you, and you can watch out for them. And it builds a better neighborhood and living situation.”
Watch out for additional costs or inconveniences. Tom says, “Parking costs are often extra, and parking in certain places is becoming more expensive. If you’re renting in the city proper, you will need a car though because there are no supermarkets close by and the mass transit system, whilst improving through efforts such as the QLine, does not match that of other cities.”
He also advises people to be sensible about Detroit’s reputation for crime. “People worry about crime in Detroit, and it’s certainly a factor, but no more than in any big city. If you’re used to city living, sensible and engaged with your neighborhood, then surprises are unlikely.”