The Detroit real estate market has become the most popular investment market in the country. Investors and small companies from all over the world have flocked to Detroit in recent years to cash in on the high returns. As of late, larger institutions have entered the market in a big way. In February 2018, the University of Michigan Board of Regents announced a $30Mil investment in a Detroit real estate investment fund. This is major news considering any investment by the University must be thoroughly researched and voted on. The Detroit Renaissance Real Estate Fund invests in residential properties throughout Metro Detroit including within the city limits. According to the Detroit Free Press, the fund acquires single family and multi-family homes that require renovations. The fund then renovates the homes and rents them to qualified tenants. According to Fortus, the fund's general partner, they target "undervalued homes that are typically two to three bedrooms."
With the lack of financing available to primary homebuyers and investors in the city of Detroit, the rising property prices have been aided by private sector investment. Larger private equity firms and individual investors have made buying very competitive in the city. With far less foreclosures on the market, inventory in Detroit's best investment neighborhoods has become scarce. The University of Michigan's announcement is not surprising considering the amount of interest in Detroit's market. Home prices continue to rise, a significant jump from the depths of the 2009 housing crisis. Some high end neighborhoods in the city have welcomed the return of traditional financing from major banks. This has sent prices in neighborhoods like Rosedale Park, Grandmont, Sherwood Forest, and East English Village skyrocketing.