We’ve known that Detroit rents have been steadily increasing for years, though there was some indication that as new units came online that rate might slow down. But according to a new report, the cost to rent in Detroit increased by one of the highest rates in the nation in 2019.
The annual report by Apartment Guide analyzes rental rates in the 100 most populous cities by using a weighted average formula based on available multifamily units at the beginning of each month.
In Detroit, it found that renting cost an average of 13.2 percent more from the beginning to end of 2019. That was the 10th highest increase in the nation. Michigan as a whole saw rates increase by 15.6 percent, good for fifth highest.
Much of that surge can be attributed to the growth of studio apartments in Detroit, whose cost increased by 31.8 percent to $1,242.41 per month—highest in the nation. Cost for one-and two-bedroom apartments also increased by 13.2 percent and 9.1 percent, respectively.
That may simply be a result of so many newer developments consisting of studios and one-bedrooms, and then trying to determine their true market value.
Cities that saw the biggest rent increases in 2019 were Newark, Miami, and Phoenix. Surprisingly, cities with some of the highest rental rates (San Francisco, New York City, Boston) saw modest decreases.
The report also conducted a survey and came to some general conclusions. Rental rates are so highly and increasing overall because there is a massive housing shortage. “New housing construction has barely kept pace with the growth in housing demand over the past decade.”
There’s also a similar number of people who feel that rent is too high (43 percent) and are satisfied with their living situation (42 percent).