In collaboration with Invest Detroit and Zimmerman Volk Associates, the Downtown Detroit Partnership (DPP) today released its third Greater Downtown Residential Market Study, which provides an in-depth look at the potential demand for new market-rate and affordable housing units within Downtown, Corktown, Rivertown, Lafayette Park, Eastern Market, Midtown, Woodbridge, TechTown, and New Center.
Over the next five years, the study projects combined demand for new market-rate and affordable units will total nearly 10,000 units. Additionally, annual demand exists for 1,230-1,500 new market-rate rental and for-sale multi-family units, and an estimated 414-512 affordable rental and for-sale multi-family units. DPP also estimates demand for new rentals and for-sale multi-family units will range from 6,150-7,500 units, and 2,070-2,500 affordable units will be in demand for rent or sale.
Of all units developed since 2014, the survey indicates nearly 76 percent are market-rate and 24 percent are affordable or income-restricted units. Since 2014, 20 new rental buildings have also been developed in the Greater Downtown, but the study demonstrates that construction for new rental units has lagged behind forecasted sales. This year, 1,750 new rental units were developed, between 150-1,000 fewer units than the forecasted demand.
“The Downtown Detroit Partnership continues monitoring the pulse of the city’s housing market by facilitating the gathering of key information such as the Greater Downtown Residential Market Study,” says Eric Larson, CEO of DDP. “Our work with Invest Detroit and Zimmerman Volk Associates has shown us that 35 percent of residential demand, both market-rate and affordable units, is in the Downtown neighborhood, and that is supported by DDP initiatives that help keep our Downtown neighborhood welcoming to all.
“We’re seeing a continued demand for residential units, and that demand is increasing faster than the current supply of available units,” adds Larson. “There is a great opportunity in the city for developers for both market-rate and affordable units.”
The full study can be read here.