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Data: Redfin; Chart: Alice Feng/Axios Visuals

Roughly a quarter of Michigan homeowners with mortgages have a rate below 3%, per Redfin data shared with Axios.

Those low rates are locking homeowners in place, which then leaves potential buyers with fewer homes to choose from.

Why it matters: Mortgage holders are experiencing the "golden handcuffs" phenomenon: They might have a great rate, but if they want to relocate or find another home, they likely can't do so without spending a lot more cash, explains Redfin chief economist Daryl Fairweather.

By the numbers: Just 8.7% of Michigan homeowners had a mortgage rate above 6% as of October 2022, per Redfin.

Almost 10% of them had a rate of 5%-6%, while 21.1% were at 4%-5% and the largest percentage, 39.2%, were at 3%-4%.

What they're saying: "Many people have decided to sit on the sidelines — 'Let's stay in our home for now; we can save up our money for a higher down payment down the road,'" Gino Tozzi, a member of local real estate data company Realcomp's board of governors, tells Axios.

Tozzi, also a broker with Real Estate One, points to historically low inventory as a long-term problem in Metro Detroit — not just because of people opting to stay in their current homes, but also builders bringing little new inventory to market.

Zoom out: Nine in 10 U.S. homeowners secured mortgage rates below 6% as of late 2022, per Redfin. Meanwhile, mortgage rates have swung between 6% and 7% nationally in recent months.

Meanwhile, buyers are also exploring adjustable-rate mortgages or buydowns in hopes of a lower monthly payment, Fairweather says.

Reality check: Lower rates could loosen up some supply, but not enough to meet demand.

New construction isn't keeping up, either. Fairweather predicts it'll take the U.S. a decade to repair its housing shortage.

"Golden handcuffs" lock up Michigan's housing supply

Roughly a quarter of Michigan homeowners with mortgages have a rate below 3%.

Roughly a quarter of Michigan homeowners with mortgages have a rate below 3%, per Redfin data shared with Axios.<ul><li>Those low rates are locking homeowners in place, which then leaves potential buyers with fewer homes to choose from.</li></ul>

Real Estate

National data: Angi; Table: Axios Visuals

Before tackling that home renovation project you've been dreaming about or dreading, think about how it could affect your home's resale value.

Why it matters: Detroit sellers need to rake in all the cash they can if they're giving up record-low mortgage rates.

By the numbers: Eight of the top 10 projects that command the highest return on investments in the U.S. are exterior changes, from fixing up the garage to building a deck, according to Angi data shared with Axios.

In Metro Detroit, replacing a garage door — one of the cheaper projects — costs an average of around $1,029.

A minor kitchen remodel will set local homeowners back $22,022, on average. But it can range from $1,200 to $58,000 depending on materials and how much work you do yourself.

The big picture: The type of project you should prioritize depends on how long you'll be in the house, per Angie Hicks, Angi's chief customer officer.

If you plan to stay at least five years, go ahead and spring for your dream kitchen.

But if you're selling in the next year, it might be time to just roll your sleeves up and tackle less sexy projects (think: finally fixing that leaky faucet).

Reality check: Higher interest rates make tapping into home equity via cash-out refinances or home equity loans more expensive, Axios' Emily Peck reports.

This can lead to homeowners putting off kitchen renovations and other home improvements.

Be smart: You shouldn't expect to earn every penny back on things like a new roof or A/C unit — today's buyers expect the basics to work, Hicks says.

Here are Hicks' other top tips for getting the highest ROI:

🏘 Consider your neighborhood. If every house has 2.5 bathrooms, you might not need to add a third.

🌷 Invest in curb appeal. Replace your garage door, paint your front door or spruce up your landscaping.

🏠 Neutralize. If you're selling soon, it's not the time for a funky accent wall —  it's time for fresh, neutral paint.

Home improvement options with highest return on investment

The type of project you should prioritize depends on how long you'll be in the house.

Before tackling that home renovation project you&#x27;ve been dreaming about or dreading, think about how it could affect your home&#x27;s resale value.Why it matters: Detroit sellers need to rake in all the cash they can if they&#x27;re giving up<a class="gtmContentClick" data-vars-link-text=" record-low mortgage rates" data-vars-click-url="https://www.axios.com/local/detroit/2023/07/12/golden-handcuffs-michigan-housing-supply-detroit" data-vars-content-id="28ce2126-5bac-4209-98fb-039e244a4e1c" data-vars-headline="Home improvement options with highest return on investment" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/detroit/2023/07/12/golden-handcuffs-michigan-housing-supply-detroit" target="_self"> record-low mortgage rates</a>.

Population growth in Detroit remains elusive, but interest in moving here from the state's west side is on the rise.

Why it matters: Gov. Gretchen Whitmer and local leaders have made reversing population declines statewide and in our metro a high priority.

State of play: Metro Detroit's appeal has increased in Grand Rapids this year and held steady in other big cities such as Chicago, Denver, New York and Los Angeles, according to Zillow data shared with Axios.

Data: Zillow; Note: Origins include the entire metro area; Chart: Axios Visuals

Meanwhile, a growing number of house hunters are local.

Local residents accounted for 75% of page views for Detroit-area listings in Q1 2023. That's higher than the same time last year (73%).

Zoom in: Grand Rapids leapfrogged Ann Arbor for the city outside Metro Detroit with most interest in homes here.

Grand Rapids accounted for nearly 5% of all Metro Detroit Zillow page views early this year compared with 3% last year.

Interest coming from Ann Arbor, however, fell from 5% early last year to 1.5% this year.

The intrigue: Both this year and last, Columbus, Ohio, has had the most interest in our metro from outside the state.

What they're saying: Paul Isely, an economist at Grand Valley State University in Grand Rapids, tells Axios via email that he has not yet seen data reflecting a growing interest in moving to Detroit.

But the findings from Zillow's page views are consistent with anecdotal feedback he's received.

The big picture: Stubbornly high mortgage rates and home prices are making it too expensive for most people to buy.

"We're seeing a big pullback in migration right now," Redfin deputy chief economist Taylor Marr tells Axios.

Between the lines: If people are moving right now, it's in search of cheaper housing elsewhere.

What's next: While affordability will likely still be the No. 1 driver, growing environmental concerns will start to influence migration patterns, Marr predicts.

Climate migration could drive Michigan population growth.

Detroit's appeal to outsiders

car drives along a city street of detroit as a truck drives on a bridge overhead

Photo: Kent Nishimura/Los Angeles Times via Getty Images

Housing

A chart showing cities outside Detroit from which the most Zillow page views originate.

Population growth in Detroit <a class="gtmContentClick" data-vars-link-text="remains elusive" data-vars-click-url="https://www.axios.com/local/detroit/2023/05/24/memphis-detroit-largest-majority-black-us-city" data-vars-content-id="6043d8bc-2ce4-43b6-aedf-577bf442cdeb" data-vars-headline="Detroit&#x27;s appeal to outsiders" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/detroit/2023/05/24/memphis-detroit-largest-majority-black-us-city" target="_self">remains elusive</a>, but interest in moving here from the state&#x27;s west side is on the rise.Why it matters: Gov. Gretchen Whitmer and local leaders have made reversing population declines <a class="gtmContentClick" data-vars-link-text="statewide" data-vars-click-url="https://www.mlive.com/public-interest/2023/04/deaths-migration-cause-3-population-decline-in-michigan.html" data-vars-content-id="6043d8bc-2ce4-43b6-aedf-577bf442cdeb" data-vars-headline="Detroit&#x27;s appeal to outsiders" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.mlive.com/public-interest/2023/04/deaths-migration-cause-3-population-decline-in-michigan.html" target="_blank">statewide</a> and <a class="gtmContentClick" data-vars-link-text="in our metro" data-vars-click-url="https://www.axios.com/local/detroit/2023/04/10/wayne-county-population-decline-nations-worst" data-vars-content-id="6043d8bc-2ce4-43b6-aedf-577bf442cdeb" data-vars-headline="Detroit&#x27;s appeal to outsiders" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/detroit/2023/04/10/wayne-county-population-decline-nations-worst" target="_self">in our metro</a> a <a class="gtmContentClick" data-vars-link-text="high priority" data-vars-click-url="https://www.axios.com/local/detroit/2023/06/02/gov-whitmer-task-force-michigan-population-growth" data-vars-content-id="6043d8bc-2ce4-43b6-aedf-577bf442cdeb" data-vars-headline="Detroit&#x27;s appeal to outsiders" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/detroit/2023/06/02/gov-whitmer-task-force-michigan-population-growth" target="_self">high priority</a>.

Newcomers

A growing share of Metro Detroit homeowners are selling their houses at a loss, per data Redfin shared with Axios.

Driving the news: 6.9% of metro homes sold at a loss from August-October 2023 — up from 6.1% a year ago.

The median loss was around $20,000, per Redfin.

San Francisco was the only city in the country with a larger share of losses (13.6%).

What they're saying: Local real estate agents were somewhat surprised at the data given they are noticing a high demand for move-in-ready homes.

"The inventory's been picked over dramatically," Randy Repicky, a Grosse Pointe realtor who manages Real Estate One's market research department, tells Axios. "Listings are either going right away or they're sitting."

Yes, but: More sellers could be taking a loss due in part to a softening condo market, Ryan Cooley, owner of O'Connor Real Estate on Michigan Avenue, tells Axios.

Additionally, some out-of-town speculators and house-flippers are offloading property and willing to take a loss on the homes they no longer intend to fix up and sell.

Zoom in: A condo in Midtown was recently listed for $385,000 — about $5,000 less than what the seller paid a couple of years ago, Cooley says.

The big picture: Losing money on your home sale is becoming more common across the U.S., Axios' Brianna Crane reports.

More than 3% of U.S. homes sold at a loss in August-October 2023 — up from 2.4% a year ago.

The median loss was around $40,000, per Redfin data.

The other side: Some markets have been even stronger for sellers this year. The share of losses in Chicago, for instance, has shrunk since last year.

The bottom line: In this low-inventory market, sellers are still on top. Those who've been in their homes for a long time can make a profit, per Redfin.

More Metro Detroit homeowners are selling at a loss

6.9% of metro homes sold at a loss from August–October 2023, Redfin data shows.

Real estate

Illustration of a real estate sale sign shaped like a downward point arrow

A growing share of Metro Detroit homeowners are <a class="gtmContentClick" data-vars-link-text="selling their houses" data-vars-click-url="https://www.axios.com/local/detroit/2023/10/05/metro-detroit-housing-market-hot-summer" data-vars-content-id="714c9b2d-c507-4318-9140-d2c6ff5ad018" data-vars-headline="More Metro Detroit homeowners are selling at a loss" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/detroit/2023/10/05/metro-detroit-housing-market-hot-summer" target="_self">selling their houses</a> at a loss, per data Redfin shared with Axios.Driving the news: 6.9% of metro homes sold at a loss from August-October 2023 — up from 6.1% a year ago.

News

Data: Census Bureau; Map: Alice Feng/Axios

The share of multigenerational households in Wayne County is 8.6% — the highest percentage of living situations of its kind in Michigan, according to Census Bureau data.

Driving the news: Multigenerational households — three or more generations under one roof — are on the rise in the U.S.

By the numbers: Out of the 437,343 households in Wayne County, 37,518 are multigenerational, data shows.

The big picture: Financial concerns and caregiving needs are two of the major reasons people live with their parents (and parents' parents).

There were 6 million multigenerational households in the U.S. in 2020, up from 5.1 million in 2010.

The intrigue: Living close to family or friends can improve your health and happiness.

Wayne County leads Michigan in multigenerational households

The share of multigenerational households in Wayne County is 8.6%.

The share of multigenerational households in Wayne County is 8.6% — the highest percentage of living situations of its kind in Michigan, according to Census Bureau data.Driving the news: Multigenerational households — three or more generations under one roof — <a class="gtmContentClick" data-vars-link-text="are on the rise in the U.S." data-vars-click-url="https://www.axios.com/2023/11/05/multigenerational-living-families-data-statistics-map-states" data-vars-content-id="d7080561-eaf2-40ff-baab-c3876695ea7c" data-vars-headline="Wayne County leads Michigan in multigenerational households" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/11/05/multigenerational-living-families-data-statistics-map-states" target="_self">are on the rise in the U.S.</a>

Brianna Crane

Featured stories

More Metro Detroit homeowners are selling at a loss

Wayne County leads Michigan in multigenerational households

Home improvement options with highest return on investment

Detroit's appeal to outsiders

"Golden handcuffs" lock up Michigan's housing supply