We’ve talked about owning vs. renting in Detroit, and clearly, many opt on the owning side. The allure of cheaper-than-normal real estate is appealing, but comes with many obstacles in Detroit (the price of renovations, difficulty with financing, high taxes). Still, a new report shows that for millennials, who typically have a low-ownership rate, have a higher ownership rate in Detroit compared to other areas.
For the study, Abodo used information from the U.S. Census Bureau’s 2015 American Community Survey (the most recent data available). Homeowners in the 18 to 35 age bracket were included. The Detroit metro area (Detroit, Dearborn, Warren) was used in the analysis.
Sam Rabdil, spokesman for Abodo, explains,
"In Detroit, specifically, our report shows that only 40.2% of Millennials own homes. On the other end of the spectrum, 59.8% of Detroit Millennials are renters. These numbers in Detroit are on the high end for homeownership by Millennials, when compared to the rest of the country. The city ranks No. 19 overall in terms of cities with the most Millennial homeowners. Detroit ranks No. 2 for Millennial homeownership, when compared to the largest cities in the U.S."
The study determined that the average millennial in Detroit would have to save for 8.5 years in order to afford a down payment on a home. This again is low compared to other cities (does someone in LA really have to save for 28.7 years?).
The average value of a Millennial-owned home in Detroit is $148,404.
Another Michigan city ranked even higher overall. Over 45% of Grand Rapids millennials own their home.
The full report can be found here.