Detroit's economy is strong due to a level of opportunity and development not seen since the 194Os and 195Os.
The city's unemployment rate is the lowest in 33 years, due in part to major employers like Stellantis Assembly Plant, General Motors Factory Zero, Ford's Michigan Central Station, and Amazon. The regional Chamber of Commerce says Detroit is witnessing a blue-collar boom due to investments in infrastructure and diversification into tech, renewable energy, and advanced manufacturing.
The University of Michigan expects Detroit and the state to avoid the brunt of a national recession due to resiliency and pent-up demand in the auto industry.
Strengths
Detroit ranks 10th in the United States for the number of homes for sale that are attainable to middle-income buyers; 49.3% of Detroit's listed homes fall in this category. At about 81%, Detroit has the second highest home ownership rate for Gen Xers in the U.S., behind Minneapolis.
Weaknesses
New Census data indicates Wayne County's population decline of 16,030 people between 2020 and 2022 was the worst in Michigan and the seventh worst drop of any county in the U.S. The Detroit CBSA's population and households are projected to decrease in 2023.
Sales
New-home sales in the Detroit-Warren-Dearborn metropolitan area decreased 26.6% year over year to an annualized rate of 1,777 units in May. Existing-home closings for the 12-month period ending in May posted a year-over-year decline of 26% to an annualized rate of 62,622 units.
Prices
The average list price for a new detached home in the region increased 2.6% from 2022 to $492,394, in June while the average list price for a new attached home increased 10.9% over the same period to $473,283. Homes priced under $250,000 experienced the most closing activity over the past year. The new-home affordability ratio for a detached home reached 37.4% in May.
Economy
Total nonfarm employment in the metropolitan statistical area increased 1.5% from the same period last year to 2,034,200 payrolls in May. There were approximately 9,500 more jobs in May compared with the previous month. The local unemployment rate decreased to 3% in May compared with 3.2% in the previous month, and the jobless rate is lower than it was this time last year when it stood at 3.6%. Zonda forecasts the region's unemployment rate will finish the year at 3.6%.
Community
The current population for the metropolitan area is approximately 4,342,840 people and is projected to decrease by 0.2% this year. There are approximately 1,769,830 households in the region, which is down 0.4% year over year. Forecasts show that current household formation is expected to increase by an annual growth rate of 1.2% for 2028. Incomes increased by 3.7% from the previous year to $69,479.
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