Invest in Detroit Real Estate

Detroit Real Estate Investing

Metro Detroit home prices are at an 8 year highDetroit is the most searched real estate investment market by non-residents of the US. Why is Detroit such a popular investment destination? It’s all in the numbers. Detroit real estate investing has never been more exciting! There are many popular investment markets in across the US, which offer attractive returns. However, there is no market in the country that offers more to investors than Metro Detroit. Detroit real estate investing in 2018 can be very profitable. There are several reasons for this, specifically:

  • Metro Detroit’s housing market has skyrocketed in value since the depths of the housing crisis. Detroit investment properties capital appreciation figures are impressive and show no signs of slowing down.
  • No other market in the US offers the same “bang for your buck.” Your investment dollar goes further in Detroit, with price points significantly lower than other popular investment markets like Memphis, Atlanta, Indianapolis, or Cleveland.
  • Detroit and its surrounding suburbs offer the perfect balance between capital gains potential and high net cash returns.

Investors from around the world have invested tens of millions of dollars into Detroit’s neighborhoods over the past 7 years. This helped drive the housing market forward while lending restrictions pushed many home buyers out of the market. Gradually, as the national housing market continued its upward swing, more home buyers re-entered the market and helped home values surge. No market felt this surge more than Metro Detroit, where prices are up almost 70% from its lowest point in 2010.

The good news is that investors haven’t missed the boat. The housing market is expected to continue its climb, and working with US Investor Group's Detroit real estate investments team will ensure you get access to exclusive deals which are significantly under market value.

Resurgence of Detroit’s Economy

Since the economic downturn of the late 2000’s, Metro Detroit has experienced a total resurgence of its economy, fueled by traditional industry as well as new businesses. Metro Detroit’s economy will forever be linked to the Automotive industry, home to America’s three largest automakers: General Motors, Ford, and Chrysler. During the height of the global financial crisis, Detroit’s “Big 3” automakers were on the brink of collapse, culminating in a bailout by the US government. General Motors, the largest automaker in the world filed for bankruptcy and received federal dollars during its restructuring. Since then, the company has far exceeded the expectations of market experts, becoming one of the most profitable companies in the world. Since its low point in 2009, the company has earned over $30 billion, punctuated by a record $9.7B profit in 2015. Ford Motor Company, the country’s second largest automaker and one of the largest employers in Metro Detroit has also performed well, earning over $8.5 billion in 2015 alone. In January 2017 Ford announced it would be scrapping plans to build a billion dollar plant in Mexico, choosing instead to reinvest in its Michigan plants and keeping jobs in Metro Detroit. By shifting their focus to new product development and innovation, GM, Ford, and Chrysler have all made positive gains which will have a reverberating effect throughout the region.

While Detroit will always be linked with the manufacturing sector, the City’s economy is diversifying into other industries. The healthcare industry employs tens of thousands of Detroiters and is home to some of the largest companies in the field. Blue Cross Blue Shield of Michigan, Henry Ford Health System, and Detroit Medical Center are all based in Detroit.

"You actually have a major industry now, a huge industry, that’s come back big, big time. And that’s been a difference not only to Detroit, that’s been a difference all over the United States... If I had a way of buying a couple hundred thousand single family homes... I would load up on them. " - Warren Buffet

Detroit Investment News

December 2018

With news of GM closing the historic Detroit-Hamtramck assembly plant, many are wondering how this will effect the city’s resurgence. According to the Associated Press, news of the plant closing will have a minimal effect on the city’s overall economy. Experts believe Detroit’s economy is shifting away from manufacturing in favor of the medical and technology industries. Layoffs like the one announced by General Motors will have much less of an effect than previous layoffs because much of the money saved by the auto giant will be reinvested into technology (autonomous vehicles, electric powered cars). 

It’s also important to note that while Detroit’s economy is becoming more diverse, new manufacturing jobs are still a major positive for the Motor City. As GM was announcing…

December 2018

Detroit mayor Mike Duggan announced a major investment in Detroit's neighborhoods earlier this month. The leaders of 7 companies joined the mayor during his announcement, representing: Huntington Bank, Chemical Bank, Fifth Third Bank, Flagstar Bank, Penske Corporation, and Blue Cross Blue Shield of Michigan. Each company announced they would be investing $5 million in 7 neighborhoods on both sides of the city. According to Fox 2 Detroit: the neighborhoods are: Grand River Northwest, Jefferson Chalmers, Russell Woods/Nardin Park, Campau/Banglatown, Warrendale/Cody-Rouge, Gratiot/7 Mile, and East Warren/Cadieux. The funds will be spent on affordable housing, renovating vacant buildings, and improving commercial storefronts. The mayor explained that this was the blueprint for success in…

October 2018

Ford sent shockwaves through the city when it announced it would be purchasing the iconic Michigan Central Station in Detroit's corktown neighborhood. The long vacant building became a symbol of Detroit's urban decay. However as Corktown became an increasingly popular neighborhood in recent years, it became inevitable that the building would eventually be sold to a developer. Only a buyer with seriously deep pockets could bring new life to the crumbling building. That's when Ford stepped in and announced its ambitious plans to build a state of the art 1.2 million square ft campus on the historic site. 

The company announced that all 2,000 workers hired to complete the project would be unionized. Ford estimates that it will take 2.5 million man hours, 51% of these hours must be…

September 2018

In the wake of Detroit's bankruptcy 5 years ago, JP Morgan CEO Jamie Dimon took a big gamble on Detroit. The head of the nation's largest bank decided to invest more than $100Mil in the city which was ravaged by the global financial crisis as well as years of mismanagement at the city and state level. Fast forward to 2018, where the investment was so successful Chase has decided to invest another $500Mil as part of its AdvancingCities Initiative. In the cash strapped city, the city government was limited as far providing the resources and incentives to spur investment. Thankfully, the private sector stepped up in a major way. Since the depths of the mortgage crisis, the city has witnessed staggering investments in its commercial center as well as its neighborhoods. 

According…

July 2018

This month, several national media outlets have written profiles on the City of Detroit to mark the 5 year anniversary of its bankruptcy filing. In 2013 Detroit became the largest US municipality to file for bankruptcy, a story that received extensive coverage. At the time, Detroit was crippled by massive debt and a staggering decline in population. So where is Detroit today and what lessons have we learned from 2013? According to this CNN article, Detroit has made huge positive gains despite “having a long way to go.” 

The loss in population has slowed drastically, with several sections of the city actually experiencing gains in population - specifically in the “greater downtown area.” This area includes neighborhoods such as Corktown, New Center, and the Cass Corridor.…

July 2018

Ford is definitely investing in Detroit real estate in 2018.

When people around the world think of Detroit, the first thing that typically comes to mind is: cars. It is after all, the Motor City. Long home to the "Big 3," titans of the automotive industry: Ford, General Motors and Chrysler. It's fitting that one of those giants has just announced one of the most important developments in Detroit in over 20 years. Ford has acquired and will renovate the iconic Michigan Central Station. A grand, historic structure that dates back to Detroit's time as the manufacturing capital of the world. Built in 1913, the train depot was designed by the same firm that worked on the Grand Central Station in Manhattan. The building has sat vacant for decades now, left crumbling by years of…