Quote Originally Posted by wolverine View Post
Detroit can't deliver new or renovated apartments as fast as Chicago can. People want apartments in new or historic buildings that have been fixed up nice and have better finishes and conditions. There's a lot of housing available in Detroit, but it's worn out or needs major repairs. It's just not something young professionals want.
It seems like alot of new development in Detroit comes with tons of layers of creative financing unlike Chicago. You hear about buildings securing all sort of odd loans and grants from government agencies, non profits, various programs, etc. I'm willing to bet the complicated nature of securing financing in a market that has traditionally struggled is suppressing developer's abilities to deliver hundreds more apartments to a market that really needs them.
Pretty much the fact Detroit has so many vacant buildings is what limits Detroit's ability to grow, ironically enough. Vacant buildings have to be either renovated or demolished, they can't just sit there.

However, renovation, especially of large ornate buildings, costs a lot of money. Prices have to be at a certain point for private lenders to justify taking the risk and expecting a return [[see example Book Cadillac). If prices aren't at that level, then everything will be subsidized or have these complicated funding sources that have been apparent.

Of course, demolition tends to be frowned upon in Detroit for obvious reasons, but otherwise vacant building are a very real drag on the market. They're both a symptom of a falling market and a limiter of a rising market.