The hottest residential real estate market in the United States is...Detroit

[Commissar SFLUFAN]

Home prices are surging – and Detroit gained the most in November, beating Miami for the first time

WWW.CNBC.COM

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Home price gains are increasingly fueled by a decline in mortgage rates.

 

Quote

 

On the city level, Detroit saw the largest annual price gain at 8.7%, surpassing Miami, which came in at 8.3%, according to CoreLogic. Miami had held the top spot for 16 months.

 

“Detroit lagged appreciation during the pandemic so some of this was a catch up,” said Hepp. “Other Mid-west areas seeing stronger appreciation because they’re more affordable.”

 

While the median price of a home in Detroit is still among the most affordable in the nation, the market is still considered overvalued, due to local income levels.

 

Roughly 82% of the nation’s 397 metropolitan housing markets surveyed by CoreLogic were considered overvalued. That means Detroit’s home prices are overly high compared to local household incomes. Notably, large cities considered “normal” in valuation were Boston, Chicago, Los Angeles and Washington, D.C.

 

 

[Ominous]

Providing "special" home loans to underserviced areas results in pricing out the underserviced.... 

[Dodger]

Or is it just gentrification with whitey realizing they can get houses cheap and moving in

[Ricofoley]

Barbarian (2022)

[Uaarkson]

I predicted this 15 years ago.

[Ominous]

1 hour ago, Dodger said:

Or is it just gentrification with whitey realizing they can get houses cheap and moving in

Without HMDA data to confirm, I suspect that's a part of what it is. Bigger picture it's likely young working professionals, many of which tend to be white based on general population numbers. 

[finaljedi]

1 hour ago, Ominous said:

Without HMDA data to confirm, I suspect that's a part of what it is. Bigger picture it's likely young working professionals, many of which tend to be white based on general population numbers. 

 

Until hedge funds pick up on it, buy what's left and jack up prices even further.

[Derek]

When you get away from the nickname of 'Murder Capital', great things can happen.

[Signifyin(g)Monkey]

It actually conforms quite well to historical patterns of cyclical urban development and its relationship to industrial development and (in an American context) white flight.

 

Industrialization begets urban concentration, which raises land prices. In the first phase rising land prices fund an urban middle class, then when they get too high they induce a migration of much of this middle class, as well as industrial producers, from the urban core to the periphery, funding the development of suburbs. (historically, racial tensions and income differentials usually meant the migrants were disproportionately white) This leads to all sorts of nasty socioeconomic issues in the urban core, usually disproportionately affecting (predominantly black and Hispanic) minority communities—not just due to racial income differentials but also due to racist housing policies—which along with the migration’s deconcentrating effects eventually brings land prices back down. Then as land and labor in the suburbs becomes overvalued, business and industry is enticed to return to the now-cheaper urban core, and the children or grandchildren of the original urban middle class eventually follow.  This begins the cycle anew, as this new migration begins raising the price of land again.

 

I think in Detroit’s case the cycle just took longer than in other big Rust Belt metropoles, and the effects were more pronounced, which is how it got its reputation as America’s urban horror show.  In reality many other cities went through a smaller, less intense version of the same thing.

[Uaarkson]

A reminder of what sparkly and glamorous NYC looked like not that long ago:

 

 

Cities can and do crawl back from disaster. Detroit will be no different.