What will Detroit look like in 20 years?

[illwill]

Jimmyr, I too often think Detroit is shooting itself in the foot charging such high real estate prices in the city center and nearby areas. But as someone stated earlier, It's very simple... it is supply and demand. However, my argument about supply and demand is how long will there be a demand when people are already being priced out this early in the recovery? Eventually people will look at other cities that are more affordable or cities that can offer more. Such as Cleveland, St. Louis, Pittsburgh etc...

One thing that I always point out about Chicago is back in the 80's when Downtown Chicago looked like Downtown Detroit, the price of real estate remained dirt cheap for decades. The thing is, back then, Cities were the last place anyone wanted to live in those days. It took Chicago several decades for the downtown population to build for young creative types and professionals. When Chicago began it's downtown growth, condos were selling between $19,000-$39,000 in the gold Coast. It stayed like this for years! This is why the Loop is so heavily populated today, because Chicago's downtown was dirt cheap for so long. Prices didn't start out at $350K and it wasn't all about the granite, amenities offered etc. It had a very solid base. If they had been trying to charge top dollar prices back then, people would have said "screw that!" And moved to greener pastures. That's my fear for Detroit.

A couple of beginner chefs teamed up with some old timers that had old warehouses and they brought in new restaurants, bars, nightclubs etc. But keep in mind AGAIN, city living wasn't trendy back then. So prices still remained low. But cities are different now and so are the people wanting to live in them. Prices are purposely being driven up and it's because the new NIMBY's want cities to look a different way. Not saying I feel one way or the other...If ANY city was to do this stuff right now, prices would sky-rocket because of the greedy developers/banks. In turn, forcing people to look else where to live. This is why I think Detroit is slow to grow and I fear this "might" cause a bubble in Detroit's city center. The prices are already scaring people away. I asked my college age nephews and nieces and their friends if they'd like to live downtown Detroit and they said yes, but it's too expensive. So they'll continue living in Ann Arbor and elsewhere. Already, Detroit has already priced out young successful people.

Detroit is notorious for always missing the boom at the right time.