Multifamily Market Seen as Steady Investment

DETROIT-With the cost of home ownership continuing to outpace average rental rates, apartment buildings in the Detroit market will remain a strong investment vehicle, according to a report by Marcus and Millichap of Southfield, MI. The apartment market in the Detroit MSA is ripe for substantial rent increases, which will increase property values as well as provide new owners with healthy long-term returns, says Frank Kupiec, who wrote the report.

He says the revitalization of Downtown Detroit, with new casinos andstadiums, have added to the visitors and employment base and will increase interest in apartment living in Detroit. Construction starts have been sluggish, however.

“Condominium conversions Downtown and in the suburbs are becoming increasingly popular, with owners choosing to sell off units for quick profits rather than deal with property management headaches sometimes associated with rental units,” Kupiec says.