It may seem like Detroit has added many new apartments in the past few years. Between 2011 and 2016, we’ve seen an additional 412 apartments in the metro area each year. But in order to keep up with current trends in immigration, fewer homebuyers, and an aging population, a new report says the Detroit area will need 15,467 new apartments by 2030.
That averages to about 1,105 a year.
The report, commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA), found that nationally, 4.6 million apartment units will be needed in that time. Detroit is ranked #33 out of 50 in terms of need.
“Nationally and here in Detroit, we’re experiencing fundamental shifts in our housing dynamics, as more people are moving away from buying houses and choosing apartments instead. Detroit is experiencing modest population growth, which could increase in the future if recent manufacturing gains continue. The rental stock is older here, and over half of renters are housed in older, more affordable apartments. Demand for additional apartments in the Detroit metro area is expected to be positive but erratic going forward,” said Deborah Oaks, President, Detroit Metropolitan Apartment Association.
Detroit itself has seen a boom in apartment building renovation and construction. We’ve mapped many of the projects underway, and many more are in the works. The report suggests that Detroit needs a wide range of apartments and at all price points. For this study, they considered an apartment as a rental unit within a building that has five or more apartments.
More Detroit data from the study can be found here.