Despite the fact that Detroit moved to the very bottom of the Marcus & Millichap’s National Apartment Index, the subtext of the report is that Detroit has slowed its economic ascent and the turnaround is gaining momentum. Unfortunately, M&M’s view is only from the Owner/Broker side of the apartment industry, and while rents are stabilizing (good for the industry) it is mostly due to a lack of new supply rather than higher demand (not as good for growth). M & M attributes the marginal increase in demand and jobs to a growing health care industry needed to take care of Detroit’s growing elderly population. This is not sustainable and Detroit will need to find a new industry to bring in jobs in order to maintain or increase the demand for apartments in the metro area. There are positives to the area not being developed too quickly, as stabilized rents should entice additional out-of-state investments leading to (hopefully) steady growth.
Aaron Bass
Contributing Writer for www.DetroitArmy.com and Analyst at Gramercy Capital Corp. in New York City, New York
Detroit Army
Tuesday, January 8, 2008
Marcus & Millichap 2008 Apartment Report for Detroit
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2 comments:
Nice analysis Bass. Good contribution. A+
This is a great time of the year downtown. There are numerous autoshow after parties and other manufacturer sponsored events surrounding the international car convention. Everyone should come and take advantage of the city while it's at its best.
White dog and b-diddy are coming home to make that cheddar!
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