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The once-bankrupt Midwestern city that has transformed into an investor's paradise: 'America's least-likely real estate boom!'
Savvy investors are snapping up cheap real estate in Detroit just over ten years after it famously went bankrupt in 2013.
The Midwestern city was dubbed 'America's most unlikely real estate boomtown' by the Wall Street Journal as real estate developers flock to the region after it hit rock bottom.
Among them is Chase C. Hunter who told Realtor.com she was able to buy properties for as little as $1,800 total.
Her journey to success began when she searched Google for 'best places to buy cheap properties.' That query led her to Motor City, where she saw that the Detroit Land Bank Authority was selling vacant 'as is' properties for just $1,000.
'I closed on my first two properties the same day in June of 2021,' Hunter said. 'The day I closed was my very first time in Detroit.'
Chase C. Hunter poses on the steps outside her first Detroit property, which she bought for $2,000 in June 2021
In the years since first committing to Detroit, Hunter has become a small real estate mogul, owning eight different homes across the city
Her first property cost $2,000, the second was $1,800.
In the years since first committing to Detroit, she has become a small real estate mogul, owning eight different homes across the city.
One property has been fashioned into an office for herself, while the other seven are renovated rental properties.
She permanently moved to the city from Houston this year to have 'boots on the ground' near her investments.
'The market can be a challenge to navigate if you aren't here every single day,' she said. 'Buyers have to know the culture of Detroit to understand how to invest here.'
She's so passionate about the Detroit market that she became a real estate agent 10 months ago and is starting a real estate investment group to help other do exactly what she did.
'Investors come to Detroit from all corners of the country because the market is like no other,' she said.
The median price of a home sold in Detroit was just $7,500 in December 2008, months after the Great Recession went into full swing and wreaked havoc on the city's storied auto industry
This Detroit home went on the market within the last day is selling for $93,500, which is right around the median listing price today
Detroit was in big trouble long before it announced it was $20 billion in debt in 2013.
The median price of a home sold in Detroit was just $7,500 in December 2008, months after the Great Recession hit and wreaked havoc on the city's storied auto industry.
Incredibly, sale prices have gradually increased most years until they reached $93,000 in July 2024, representing an more than a 1100 percent jump since 2008.
'Buyers, including investors, took advantage of low home prices in the area over the last decade, bringing energy and funds into the city,' said Realtor.com senior economic research analyst Hannah Jones.
Buying a house for less than $100,000 may seem like a dream, especially when the median listing price nationally is nearly $440,000 as of July 2024.
But getting involved in the Detroit market can get tricky, with many properties in complete disrepair or having back taxes that still need to get paid.
Although Hunter's first property cost just $2,000 upfront, she then had to sink $85,000 on renovations before it was ready for renters.
Hunter stands in front of her seventh property in Detroit. She warns newcomers that there are some things to keep in mind about the city, including the many repairs most homes need and crime heavy areas
The $1,800 home she fashioned into her office ended up costing $130,000 because she had issues with the water lines.
'I used to buy major rehabs that I'd have to repair from roof to basement; but at this point, I focus on things I can turn over pretty quickly such as cosmetic rehabs,' she said. 'I look for homes in the $80,000 range, because you spend less on repairs.'
Her renovations usually cost between $5,000 and $10,000, which still means she's paying 79 percent less for her properties than the average American might spend.
Since fixing up homes requires hiring contractors, Hunter warned that out-of-town investors especially need to vet who they work with.
'People will try to take advantage of you, especially if they know you don't live here,' she said.
Hunter also acknowledged that crime in Detroit and its surrounding neighborhoods remain 'a major challenge.'
'It can deter you from buying here for sure.'
This Detroit home listed for $129,900. It has three beds and two baths, spanning 1,843 square feet
This new listing is a bit smaller at 1,266 square feet and comes in slightly cheaper at $124,900
Despite its reputation as one of the most violent cities in America, crime rates have been trending downward. Detroit finished 2023 with 252 homicides, the fewest recorded since 1966.
Non fatal shootings and car jackings have also plummeted in the last two years.
Still, Hunter protects her portfolio of homes with security systems and advises her clients to do the same. She also researches the quality of the neighborhoods where she plans to buy since she wants her renters to be safe.
'I avoid really bad areas that would be unsafe for single mothers and children,' she said. 'If a property doesn't function well for a family, I move on.'
Despite crime still flourishing in certain areas, Hunter has found that the people of Detroit like to maintain a tight-knit community.
'Neighbors here keep an eye on things for you,' she said. 'One of my favorite neighbors passed away last year, and he would call me if my tenants were doing anything out of line. His daughter does that for me now.'
'Most of my neighbors have become my family.'