Mar 4, 2024 - News

Detroit luxury rents rise with development boom

Change in asking rent by apartment type, Q4 2022 to Q4 2023
Data: CoStar; Note: CoStar rates multifamily buildings on architectural design, structure, amenities, site and certifications; Chart: Alice Feng/Axios

Rent was rising for Metro Detroit's mid-tier and luxury apartments at the end of 2023, according to real estate firm CoStar Group.

Why it matters: Many Detroiters are unlikely to catch a break on rent this year and it's still not clear whether demand is strong enough to support the recent influx of high-end units.

  • Demand for more affordable apartments is helping to keep middle-of-the-road rent prices elevated, Jay Lybik, CoStar's national director of multifamily analytics, tells Axios.

The big picture: U.S. rents are generally still above pre-pandemic levels, analysts say.

Zoom in: Detroit's luxury rent increase coincides with a post-pandemic high-end development boom.

What we're watching: If there's potential oversaturation, it would become evident in the next year.

Go deeper: Why the apartment boom won't bring down rent for many

avatar

Get more local stories in your inbox with Axios Detroit.

🌱

Support local journalism by becoming a member.

Learn more

More Detroit stories

No stories could be found

Detroitpostcard

Get a free daily digest of the most important news in your backyard with Axios Detroit.

🌱

Support local journalism by becoming a member.

Learn more