Amid soaring coastal real estate prices, investors from across the country and internationally are discovering exceptional value in Detroit’s historic housing stock, according to a veteran local broker who argues these properties offer unique advantages often overlooked by locals themselves.
“These houses were built by the auto barons who used excellent, excellent materials to make lasting foundations with solid materials and upscale materials that still just need a little polishing and not demolishing,” says Tennitia Wilson, a broker with Cosmopolitan Real Estate Services who has worked in Detroit real estate since 1994.
Wilson, who specializes in northwest Detroit neighborhoods like Rosedale Park, says she’s seeing unprecedented interest from out-of-market investors drawn by the combination of solid construction and relative affordability.
“Southeastern Michigan, primarily Detroit, has remained so affordable economically, as opposed to the east coast and the west coast of Texas and Vegas, and how expensive the cost of living in Arizona,” Wilson says. She notes that many investors who have taken real estate investment courses are realizing the Midwest offers compelling opportunities, particularly in historic districts.
According to Wilson, the demand is particularly intense for multi-unit properties in prime locations. “I listed [a two-unit building] and sold it in 10 days. And I was really surprised that it took that long,” she says, explaining that she was traveling during that period. “If I had just been right here in town, it would have sold right away.”
Wilson argues that even locals sometimes fail to recognize the inherent value of Detroit’s housing stock and natural advantages. “Sometimes our own people living right here in this wonderful green place don’t understand that they have grass and regular, predictable seasons is really very valuable,” she says.
The combination of architectural quality and market fundamentals is creating what Wilson describes as an unusual market dynamic. “It’s both a buyer’s and seller’s market,” she explains. “It’s a great time to buy right now because there’s so many opportunities for down payment assistance… However, it’s still a seller’s market because there’s not a lot of good inventory.”
Wilson says investor interest comes from multiple channels: “I get calls from out-of-state investors every day… Investors love Detroit, and they hear from not only out of state, but out of the country.” She also maintains relationships with longtime local investors who consistently return to the market.
The most sought-after opportunities, according to Wilson, are multi-unit properties in established neighborhoods. “A lot of the four units and two units are not necessarily in the best neighborhoods. So if you get one in 42201, it is awesome,” she says, referring to one of Detroit’s more desirable zip codes.
While Wilson sees tremendous opportunity in Detroit’s historic housing stock, she cautions that realizing their potential often requires vision and investment. “These old properties are really jewels,” she says, but notes that many “have not been updated” and may require additional investment to meet modern expectations.
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