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Detroit's real estate market showing pandemic slow down is picking back up and prices are stable

2022 housing market
Posted at 4:13 PM, Jan 04, 2022
and last updated 2022-01-04 18:26:09-05

DETROIT (WXYZ) — The pandemic’s impact on everyone and everything includes the market for condo sales and apartments in Detroit.

“The entire market’s moving a little bit slower,” Matt O’Laughlin of the real estate firm @Properties Detroit said. “Until we see full office occupancy open downtown, it’s not to where we were pre-pandemic.”

O’Laughlin says those who are looking, though fewer in number now are serious and qualified prospects.

“I feel like it’s changed back to a rental market, where the past couple of years have been very strong sales-wise. And now I’d say 9 out of 10 of our phone calls are people looking for rent,” O’Laughlin said.

The Townsend on Kercheval is ready for lease now.

O’Laughlin showed WXYZ the staged model apartment inside the brand-new building on the east side, Islandview neighborhood.

“So super high-quality design, modern finishes and it almost feels like a condo product,” O’Laughlin added.

There are 24 units in the three-story building — 16 of them one-bedroom apartments, with rent starting at $1,400.

Tile work inside the building’s front entrance was continuing during our visit.

Outside, the recently completed Kercheval streetscape project adds curb appeal with plans for a second, matching apartment building across the street.

“Most people in metro Detroit are familiar with Indian Village and starting, West Village, now we’re one neighborhood over, which is Islandview,” O’Laughlin said.

If a new townhouse in Detroit’s oldest historic neighborhood is more to your liking, look no further than the Eleventh.

“We’ve got one and two-bedroom floor plans. They are townhouse style, which seem to be moving well in the market. They’ve got private entrances, private garages and that seems to be where the development is pushing in the city,” O’Laughlin said.

The townhomes are three stories and feature 9-foot ceilings.

Each unit has three outdoor spaces, two balconies and a rooftop deck.

“Incredible 360-degree views of Detroit. You’ve got the Ambassador Bridge, the train station, the whole city skylines out back,” O’Laughlin said.

Occupancy is coming soon for the first phase of the project, with 14 townhomes in all under construction in Corktown.

Despite COVID-19 and slower sales, O’Laughlin remains bullish in Detroit and its continued development.

“It seems like most projects are still moving forward. Some have been scaled back a little bit,” O’Laughlin said.

“The good news is that pricing has remained stable in the city, so for-sale pricing hasn’t really changed, the for-rent pricing is still pretty stable. So most development projects that were teed up seem to be moving along,” O’Laughlin added.