Detroit, Michigan is quietly emerging as a golden opportunity for Canadian real estate investors.
Low entry costs, high cash flow potential, and the imminent completion of a third international bridge connecting Motor City and Windsor, ON have turned a spotlight on the often-overlooked market.
In a city where the average home costs US$65,187, Canadian investors can enter the market at a fraction of the average CA$1,084,692 it would cost to buy in the Greater Toronto Area. And it’s showing in the numbers. As a result of recent interest, Detroit recently experienced an impressive 8.7% increase in home prices in 2023, even outpacing growth in cities like Miami (8.3% YoY).
Additionally, the median rent has held steady at $1,200 for several months, ensuring reliable and consistent rental income.
At the same time, Detroit's ongoing revitalization efforts have spurred a surge in housing construction and demand. As the city attracts more businesses and residents, properties in the area are poised to appreciate in value over time and present a lucrative long-term investment prospect.
According to Joe Hammel, head of the Fire Realty Team, Detroit has earned many Canadian investors over $100,000 a year in cash flow. And in 2022, the state of Michigan overall ranked fifth in popularity among Canadian investors buying US real estate.
With Detroit attracting local investors, Ontario property managers may find it worthwhile to explore the market themselves. However, crossing borders comes with considerations – potential licensing and visa requirements must be researched thoroughly.
The good news is that overseeing properties from a distance has never been more accessible, thanks to advanced property management software like PayProp.
More investor headlines
The bridge to Windsor’s revitalized future – The Globe and Mail
Resilience and opportunities in Canada's shifting real-estate investment landscape – Wealth Professional
Canadians remain bullish on real estate investment – PayProp
