Detroit Real Estate Improving, Says S&P/Case-Shiller Report

By Veronica Grecu, Associate Editor A recent report published by S&P/Case-Shiller reveals that only two of 20 metropolitan regions in the United States posted annual home price increases. Those two regions are Washington, D.C., and, surprisingly, Detroit—a city whose economy and [...]

A recent report published by S&P/Case-Shiller reveals that only two of 20 metropolitan regions in the United States posted annual home price increases. Those two regions are Washington, D.C., and, surprisingly, Detroit—a city whose economy and demographics reached historic lows at the beginning of 2011. S&P/Case-Shiller’s annual home price data shows a 2.5 gain for Detroit, almost double the gain reported for the Washington area.

The improved real estate market in Detroit is based on the growing number of building permits, the rebirth of the domestic auto industry and an increase in job openings, says The Washington Post. Though it’s still early to call this recovery trend a true bounce back, little by little the city has started attracting young professionals who find it more convenient to live and work here. In July 2010, Detroit authorities and five major local companies—DTE Energy, Compuwave, Quicken Loans, Blue Cross Blue Shield of Michigan and Strategic Staffing Solutions—kicked off the Live Downtown Detroit program which was meant to offer cash incentives to 16,000 employees to buy or rent a residential unit in the greater downtown area. Live Midtown followed soon after, and more local companies joined the program: Wayne State University, Urban Science, Henry Ford Hospital System and the Detroit Medical Center.

In residential news, Detroit Free Press reports that a joint venture between King’s Northwest Unity Baptist Church and a Cleveland-based developer built as many as 90 new homes near Wyoming and Fenkell streets. The church received more than 800 applications from low-income young professionals and even homeless Detroiters who agreed to pay rents according to their income levels. Built in the colonial style, the two-story homes have four bedrooms, two bathrooms, a fully equipped kitchen and a finished basement.

Illustration Courtesy of S&P/Case-Shiller website