Looking for the best places to invest in Detroit, Michigan? As one of the most diverse cities in America, Detroit is a cultural hub for food, music, and the heart of the American automobile industry. Whether it's Detroit-style pizza or one of the many top tier sports teams that call the city home, Detroit remains an exciting city to either visit or live in. With rental rates relatively steady, low average home prices, and a definitive buyers' market, it is also an excellent place for investors, both new and seasoned. However, Detroit is an expansive city with many different areas to choose from, some that investors may not even be aware of. In this article, we’ll cover some of the best places to invest in Detroit and what type of properties, neighborhoods, and price ranges you can expect there.
Grosse Pointe Park
Where is it located?
Located roughly 15 minutes northeast of downtown Detroit is the neighborhood of Grosse Pointe Park. With access to a variety of parks, dining, and shopping, GPP is regarded as one of the best places to live in Detroit, as well as Wayne County. Residents of the area benefit from the proximity to the waterfront, as well as a quick commute to the heart of the city. These factors both help make it a great place for families as well as young professionals.
What types of properties are available?
Many of the properties in Grosse Pointe Park are A-class, single-family homes. Properties are priced higher than average for the city, however, given that the neighborhood is in high desirability, the return on the homes is greater. As one of the most affluent areas in all of Detroit, many people own their homes. While there is still a market for renters in the area, Grosse Pointe Park is great for the investor looking to turn a profit on a resell.
What other benefits are there?
The neighborhood is home to some of the best schools in all of Detroit, meaning there is high demand among families eager to move to the area. Grosse Pointe Park is also close to the Chrysler Group Headquarters which is home to 11,000 employees, making it an excellent neighborhood for staff looking to experience the extra space of the suburbs.
Brush Park
Where is it located?
Brush Park is located just five minutes away from the bustling city center and is home to many young professionals. Most of the residents in the area rent their homes, making it a hot spot for investors. Residents of the area enjoy the proximity to the abundance of nightlife and culinary culture Detroit is famous for.
What types of properties are available?
Largely comprised of condos and B-Ccass, single-family homes, Brush Park is ideal for renters who like to remain close to the city and have access to the plethora of shops and entertainment the area has to offer. The homes in this area are priced average for the city and would be the perfect fit for any investor interested in B-class properties
What other benefits are there?
Due to its centralized location, residents of Brush Park have direct access to the famous Ford Field, home to the NFL team the Detroit Lions, as well as the Tigers stadium - Comerica Park. If you’re interested in short-term rentals, Brush Park might also be a good fit. The nearby universities and sports stadiums ensure a high demand for both short- and long-term renters.
Bagley
Where is it located?
Approximately 10 miles northwest of Detroit's city center and home to the city’s university district, the neighborhood of Bagley is home to roughly 23,000 Detroit residents. The proximity to three of Detroit’s local universities make it an area in high demand for renters, and thus a hotspot for investors. Notably, the neighborhood is also nestled between two freeways, giving residents easy access to the city and surrounding areas.
What types of properties are available?
The area is mostly made up of C-class, single-family homes that are priced below average for the city. Typically, you’ll find homes that are a 3 bedroom, 1.5 bath layout. The potential for high returns on historic homes is good in Bagley, so whether you’re looking to flip or rent, this may be a great place to begin your search.
What other benefits are there?
Residents of Bagley enjoy close proximity to the Detroit Golf Club as well as use of one of the area’s largest parks, Palmer Park. Great for residents looking to get outside of the city a bit, and for investors who are looking to get their foot in the door with low housing prices.
Huntington Woods
Where is it located?
A bit further outside of the city, 19 miles to be exact, lies the neighborhood known as Huntington Woods. Home to the Detroit Zoo, Rackham Golf course, and a large variety of public parks, the residents of Huntington Woods reap all the rewards that come with living further outside the city.
What types of properties are available?
Many of the homes available in Huntington Woods are B-class, single-family homes. Priced on the higher side of average for Detroit, investors looking into the area can expect great returns on resale properties, given that the majority of the residents own their homes.
What other benefits are there?
The schools are one of the biggest draws to living in the Huntington Woods area. Families looking to settle down further from the heart of Detroit can expect some of the best schools for the area when looking to buy here. With a strong appetite for the stellar school system, and high ownership rates across the area, investors interested in reselling should certainly keep Huntinton Woods on their radar.
Birmingham
Where is it located?
A little over 20 minutes northwest of downtown Detroit is the most affluent city on our list, Birmingham, Michigan. Home to a plethora of shops, dining, golf courses, parks, and entertainment, Birmingham really does have it all. This city is perfect for residents looking to maintain a commutable distance to the city, while still enjoying their own community; and is also perfect for those looking for investment properties.
What types of properties are available?
Given its status, Birmingham is mostly home to A-class, single-family homes. However, there is a wide range when it comes to pricing for the area. As an investor this is great news, considering your potential returns are protected by the more expensive homes. You can rest assured that any investment you make in Birmingham will hold its value.
What other benefits are there?
As is typical for such areas, the schools in Birmingham are well renowned. Ranking fifth in the entire state, families of Detroit seek out this suburban haven for its excellent public schools. The combination of access to entertainment, dining, greenspaces, and top-rate schools make Birmingham one of the most sought after places to live in all of Michigan. Essentially, investors in the area will have high demand for any type of property they chose to invest in.
Final Thoughts: Best Places to Invest in Detroit
With so many options and diverse areas to choose from, there truly is something for every investor when it comes to Detroit. Whether you’re looking to stay close to downtown or maximize returns in an affluent suburb, the Detroit area truly offers the best of both worlds. To get an even better feel for where you’d like to actually invest, it always helps to talk to an expert who has boots-on-the-ground knowledge and knows each neighborhood like the back of their hand. Our Detroit team is always happy to help and answer any questions you might have. If you’d like to learn more about the Detroit market as a whole, including population insight, renal market trends, and more, download our Detroit Market Deep Dive.
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