In the past couple of years, Detroit hasn’t been faring very well. The fact that so many people have lost their jobs in the city is cause enough for people to try and move out of Detroit. So where does this downturn in the employment situation for the city leave the housing market?
Ever since the recession officially hit, Detroit has taken a beating. The prices of homes in the area have plummeted, unemployment rates have shot up, foreclosures are commonplace, and the rental vacancies are incredible. The median home price in Detroit is the lowest of all metropolitan cities in the country – just $42,000.
So, at that price, why don’t people want to move into Detroit? Well, it’s probably the fact that Motor City hasn’t been doing so well in the jobs market. Why would people want to move to a city that doesn’t have a very stable jobs market or economy? However, some investors are becoming interested in moving into the area – buying up the houses at low prices and getting them ready for families.
Interestingly, the drop-off in home prices in Detroit has been steadier than other states where the plummet was more severe (think of Florida, California, and Nevada). The record low home values are expected to move even lower in the coming months – about 13.4% by the first quarter of next year.