Downtown/Midtown Rents "Downtown Detroit rents go through roof"

[Honky Tonk]

If you read the article, it says the increase in prices is mostly attributed to the fact that the owners can barely afford to pay the bills.

While the increase in prices at face value seems like a good thing, the actual reason behind the price increases is not something to get excited about.

The whole scenario reminds me of the housing bubble in 2007.

[jaytheory]

there is one difference with the housing bubble and the "rental bubble'. when the foreclsure hit the building owners, they will get snapped up quickly by other investors who will not ahve to do build out and have a lower borrowing cost. this may put a blip in the market from the buying side but will then see another crop of developments come online during the blip.


if people just think about what they are doing they would realize that detroit [[in some cases) is one of the best values for the money in the country. ill take my 50 dolalrs a sq fot to live in detroit over 1000 sq ft to live in brooklyn.

and things are definitely changing. if you lvie in the burbs and have kids under five or are empty nesters or single or child free. come move to the city. your quality of life will actually be better than the burbs. you will see some blight. you will see some homeless people and they might ask your for change but you will have a good time,, were you can walk to a bar, walk to a museum, wlak toa casino, walk to a game all within 10 minutes walking [[3 on a bike of each other).

leaving DC and coming back home was one of the best decisions I ever made.

[Eber Brock Ward]

leaving DC and coming back home was one of the best decisions I ever made.

This. But substitute Chicago for DC in my case.

As it approaches $2/ft^2 though, I wonder if it's no longer such a bargain. I paid $1132 for about 700 ft^2 in Streeterville [[80's building) and $1700 for 800 ft^2 in the Gold Coast/River North [[2000's building) area when I didn't live in the neighborhoods. I find it hard to believe that we, here, can pull $2+, but I'm hopeful.

[wolverine]

This. But substitute Chicago for DC in my case.

As it approaches $2/ft^2 though, I wonder if it's no longer such a bargain. I paid $1132 for about 700 ft^2 in Streeterville [[80's building) and $1700 for 800 ft^2 in the Gold Coast/River North [[2000's building) area when I didn't live in the neighborhoods. I find it hard to believe that we, here, can pull $2+, but I'm hopeful.

It's a bit surprising to me too. But keep in mind, Chicago is a huge bargain for renting, not buying. Downtown rents pretty much hang around $2 per square foot and drop dramatically as you reach the neighborhoods....$1.50-1.75 / sqft

If you want to rent in midtown or downtown Detroit and also own a car, you'll face a high cost of living. Since I work between both cities, I've considered trying and have ran the numbers. Midtown and downtown Detroit was too expensive. The cost of living in Chicago was at least $200 cheaper per month within 2 miles of the loop. Plus you had all the amenities for a very convenient lifestyle.

Whether you see Detroit's rental prices inflated or not, this is really good in terms of getting more buildings rehabbed or constructed. Clearly the demand is there. It's just a matter of when developers will deliver something other than a 4-story building. I seriously think Detroit is ready to start constructing some residential towers as the demand for modern apartments is there.

[gthomas]

Whether you see Detroit's rental prices inflated or not, this is really good in terms of getting more buildings rehabbed or constructed. Clearly the demand is there. It's just a matter of when developers will deliver something other than a 4-story building. I seriously think Detroit is ready to start constructing some residential towers as the demand for modern apartments is there.

I agree totally, the demand is well overdue. We need new modern residential skyscrapers well over "4" story, how about 30-floors and up. That's about what the demand really is, we can use atleast 10-15 towers total in Downtown, Riverfront, Midtown and Corktown. I guaranteed all the buildings will 100% occupied....boy I wish I was a developer/investor...etc. I will be throwing them up so fast, similar to Chicago's North Shore residential towers district along the Chicago River.

[mwilbert]

I agree totally, the demand is well overdue. We need new modern residential skyscrapers well over "4" story, how about 30-floors and up. That's about what the demand really is, we can use atleast 10-15 towers total in Downtown, Riverfront, Midtown and Corktown. I guaranteed all the buildings will 100% occupied....boy I wish I was a developer/investor...etc. I will be throwing them up so fast, similar to Chicago's North Shore residential towers district along the Chicago River.

Demand in this [[and pretty much any) market is price-dependent. If you could build 10 towers to rent at the current market rates, that would be a lot of units, but I might believe you could rent them in some reasonable amount of time. However, it is unlikely you could build them and charge that little, and we really don't have a clue what demand is like at the prices that would probably be required.

[Hermod]

I agree totally, the demand is well overdue. We need new modern residential skyscrapers well over "4" story, how about 30-floors and up. That's about what the demand really is, we can use atleast 10-15 towers total in Downtown, Riverfront, Midtown and Corktown. I guaranteed all the buildings will 100% occupied....boy I wish I was a developer/investor...etc. I will be throwing them up so fast, similar to Chicago's North Shore residential towers district along the Chicago River.

DetroitYes plays SimCity!

[JDKeepsmiling]

The whole scenario reminds me of the housing bubble in 2007.

I do not think these are the same at all. This is rental rates increasing in a resurgent downtown. The housing bubble was people qualifying for loans that they should not have to finance purchases of homes that were traditioanlly out of their reach. These could not bemore different.