In an analysis of greater downtown Detroit's rental market, the Detroit Free Press estimates
that for 2016, 700 new units are set to open by the end of the summer. And the ones that have already opened are at or near 100 percent capacity.
"It is also giving landlords reason to continue raising rents, although the size of the year-to-year jumps could subside as more new apartments hit the market," writes JC Reindl.
The article cites several recently-opened apartment buildings in the area that have already leased out their units. One case, profiled by Model D
, is the Forest Arms Apartments. Rehabbed after a devastating fire in 2008, the Forest Arms rented out all 70 of its units the first month they became available, with rents for one-bedroom units going for around $1,000 per month.
The very high end units and those reserved for low-income tenants aren't going at quite the same rate. The Waters Edge at Harbortown, also profiled by Model D
, whose two-bedrooms rent for about $1,700 per month, still has 42 of its 134 units unleased.
The Strathmore in Midtown has leased out all of its market-rate apartments, but only a handful of its lower-income ones. In the article, the building's property manager, Derrell Jackson, explains that the reason for the difference is due to the difficulty in proving one's income.
Who are these renters? "Those filling the new Detroit apartments are typically young professionals as well as some empty nesters, leasing agents say," writes Reindl.
These cases suggest that demand is far outstripping supply. The market is obviously still adjusting, so renters should expect fairly dramatic increases in rental rates (10 to 20 percent) in the near future.