Detroit Multifamily Market Report
CBD Resurgence Buoys Fundamentals;
Suburban Demand Fosters Builds
CBD availability fully recovers. Apartment demand has returned to the urban core, evidenced by the 430-basis-point compression recorded during the past year ending in March. Improved vaccination rates and the easing of pandemic-related restrictions allowed major employers, such as Rocket Companies, to initiate their return to offices, and also led to restaurants and entertainment venues reopening, making downtown living more desirable for renters once again. Additionally, roughly one-fourth of all units in the CBD were offering concessions during the fourth quarter of 2020, which also boosted leasing activity. That usage rate has since fallen under 7 percent in March, a healthy sign for local rent growth moving forward. With only 400 units slated for delivery in Downtown Detroit this year, availability is expected to remain tight in the near term.