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Data: RentCafe analysis of Yardi Matrix data; Note: Analysis includes U.S. metro areas (defined by Yardi Matrix market boundaries) with the most apartments located in multifamily buildings of 50 units or more; Map: Kavya Beheraj/Axios

If it feels like the walls are closing in around you, you might be right — apartment sizes have been shrinking.

Why it matters: Rentals are getting smaller nationally, a reversal from when units got bigger during the early part of the work-from-home era.

Zoom in: The average size of newer apartments in metro Detroit is 739 square feet — nearly 17% smaller than the 2022 national average of 887 square feet, per a new report from listing service RentCafe.

Detroit ranks 96th for average size out of the 100 metro areas with the most high-density apartments.

Of note: At the local level, researchers considered new apartments as units built between 2013 and 2022.

The big picture: Nationwide, newly built apartments shed 30 square feet on average compared to 2021, per the report.

That sharp decrease was fueled in part by more studios and one-bedroom apartments entering the market, researchers found.

57% of apartments completed last year across the U.S. were small units. 

What we're watching: Apartments under construction. As the market keeps fluctuating postpandemic, their size could signal whether the trend of smaller rentals will stick.

Metro Detroit apartments smaller than U.S. average

If it feels like the walls are closing in around you, you might be right.

If it feels like the walls are closing in around you, you might be right — apartment sizes have been shrinking.Why it matters: Rentals are getting smaller nationally, a reversal from when units<a class="gtmContentClick" data-vars-link-text=" got bigger" data-vars-click-url="https://www.wsj.com/articles/supersize-apartments-are-back-in-demand-11624964401" data-vars-content-id="23c12b40-4121-4d7b-a85e-b1cab4dcd3f5" data-vars-headline="Metro Detroit apartments smaller than U.S. average" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.wsj.com/articles/supersize-apartments-are-back-in-demand-11624964401" target="_blank"> got bigger</a> during the early part of the<a class="gtmContentClick" data-vars-link-text=" work-from-home" data-vars-click-url="https://www.axios.com/2022/09/15/census-bureau-work-from-home-pandemic-labor" data-vars-content-id="23c12b40-4121-4d7b-a85e-b1cab4dcd3f5" data-vars-headline="Metro Detroit apartments smaller than U.S. average" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/09/15/census-bureau-work-from-home-pandemic-labor" target="_self"> work-from-home</a> era.

Real Estate

Data: Zillow Economic Research; Map: Tory Lysik/Axios Visuals

It takes Metro Detroiters an average of 6.7 years to save up for a 10% down payment on the typical home, Zillow data shows.

That accounts for saving 5% of our area's median household income every month.

Why it matters: Affordability could be a "major driver of cross-country moves" as buyers seek a lifestyle within their means, Zillow economists say.

By the numbers: In our region, the average monthly payment burden for new homeowners who paid 10% down is 28.5% of income, per Zillow.

That's up from 10% in 2012 and 23% in 2004. We've now surpassed the peak from before the Great Recession hit.

Between the lines: The share of first-time buyers in the U.S. has shrunk to a record low as inventory and affordability issues persist, according to the National Association of Realtors.

First-timers are also waiting longer to buy; the median first-time buyer age jumped from 33 years to 36 from 2021 to 2022.

Of note: The majority of Americans believe it's the worst time ever to buy a house.

And many would-be-buyers are saddled with debt, including student loans, car loans and credit card debt.

The intrigue: Nearly 42% of metro Detroit home sales were made in cash in April, as the share of U.S. cash buyers reached a nine-year high, new Redfin data shows.

Saving for a Metro Detroit mortgage

Mortgages

Map of the United States showing average years it takes to afford a mortgage down payment

It takes Metro Detroiters an average of 6.7 years to save up for a 10% down payment on the typical home, Zillow data shows.<ul><li>That accounts for saving 5% of our area&#x27;s median household income every month.</li></ul>

Data: U.S. Census American Community Survey; Chart: Jacque Schrag/Axios

The pandemic shaved a couple of minutes off your drive (or ride) to work.

What's happening: The average one-way commute in Metro Detroit was 1.3 minutes shorter in 2021 than 2019,  according to the latest U.S. Census data.

Why it matters: More people working from home has reshaped the traditional back-and-forth commute.

Michigan's at-home workforce exploded from 4.5% in 2019 to 16.4%, in 2021, according to Census data.

Zoom out: Traffic congestion is down about 27% across major U.S. cities' downtowns compared to pre-pandemic levels, Axios' Alex Fitzpatrick reports.

Nationwide, the average one-way work trip in 2021 was two minutes shorter than in 2019.

What we're watching: The Renaissance Center — our region's largest office complex — has been mostly working remotely for two years.

General Motors decision last month to bring salaried workers back in-office three days a week was recalled after immediate backlash from employees. 

A more regular, in-person presence could boost the central business district, but how much of an uptick is still unknown, Crain's Detroit reports.

Go deeper: The number of people working remotely tripled during COVID

Commutes are down from 2019

The pandemic shaved a couple of minutes off your drive (or ride) to work.What&#x27;s happening: The average one-way commute in Metro Detroit was 1.3 minutes shorter in 2021 than 2019, according to the latest U.S. Census data.

News

Data: Point2Homes; Map: Tory Lysik/Axios Visuals

Detroit is one of only four large U.S. cities where renters could recently afford a starter home.

An analysis by the real estate website Point2Homes considered "starter homes" properties valued in the lower one-third of all available homes for sale.

Why it matters: The city offers relatively affordable home buying opportunities at a time when higher housing costs nationally present obstacles for first-time buyers.

In September, a typical Detroit starter home cost $48,129.

Reality check: Some homes for sale under $50,000 are foreclosures. Others need a lot of work to be liveable.

By the numbers: In October, Detroit renters made 31% more than the income they would need to buy a starter home, according to the analysis.

Renters in the Motor City earned a household income of $25,004 on average, while the yearly income needed to cover a mortgage was $19,103.

Between the lines: Despite the relative affordability of Detroit homes, 45% of local mortgage applications were incomplete, withdrawn or denied in 2020, according to Detroit Future City.

The lending industry's reliance on credit scoring inequitably hampers Black applicants. 

Poor credit makes it more difficult to obtain a mortgage.

Detroit Future City recently published a report offering step-by-step advice to ensure mortgage lenders aren't unfairly using your credit history against you.

The big picture: The share of first-time home buyers across the United States has shrunk to a record low, according to the National Association of Realtors. 

First-time buyers made up 26% of all buyers in 2022, down from 34% last year, the group found.

Go deeper: 3 reasons it's getting harder for renters to buy

Starter homes are more affordable in Detroit than most other cities

The share of first-time home buyers across the U.S. has shrunk to a record low.

Detroit is one of only four large U.S. cities where renters could recently afford a starter home.<ul><li>An<a class="gtmContentClick" data-vars-link-text=" analysis" data-vars-click-url="https://www.point2homes.com/news/research/starter-homes-where-to-find-them-entry-level-house-myth.html" data-vars-content-id="9185a34b-1862-444a-ad99-b87d850cb610" data-vars-headline="Starter homes are more affordable in Detroit than most other cities" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.point2homes.com/news/research/starter-homes-where-to-find-them-entry-level-house-myth.html" target="_blank"> analysis</a> by the real estate website Point2Homes considered &quot;starter homes&quot; properties valued in the lower one-third of all available homes for sale.</li></ul>

Note: Available listings are defined as properties with at least one day booked or available during the month; Data: AirDNA; Chart: Axios Visuals

Detroit Airbnb hosts made 50% less than the typical host in the U.S. last year, according to company figures shared with Axios.

Why it matters: Renting out a home is a growing way to bank extra income as the cost of living goes up, Axios' Sami Sparber reports.

But the practice — which has stoked controversy for how it impacts the areas where rentals open — isn't quite as fruitful in Detroit as it is in the U.S. at large.

What's happening: The national short-term rental supply reached record levels in 2022, swelling 20% year-over-year to 1.3 million listings, per new data from AirDNA, a short-term rental analysis firm.

By the numbers: The typical host in Detroit earned approximately $7,000 in 2022, compared with the national median of $14,000, per Airbnb data.

Michigan's top five counties where hosts made the most money last year were in the U.P., northern Lower Peninsula and west side of the state: Alger, Allegan, Berrien, Marquette and Van Buren counties.

Zoom in: Detroit hosts aren't making a killing like in some other parts of the country. But from the visitor perspective, there are ample options — from a $309-a-night mansion with a game room and grill in Boston-Edison that sleeps 12 to an $84-a-night guest suite in North Rosedale Park.

Plus, Airbnb affords visitors more options to stay outside downtown than the city's hotels clustered in the central business district.

The majority of Detroit's Census tracts (60%) had at least one Airbnb listing but no hotels as of last year, with 65,000 total guests staying in those areas last year, Axios' Alex Fitzpatrick reports.

Yes, but: Airbnb's presence outside traditional tourism areas, like on residential streets, is controversial. Hosts are sometimes accused of effectively reducing the supply of local housing and thus driving up prices.

Flashback: A former Detroit City Council member proposed legislation in 2019 to try and limit the impact of short-term rentals on the city's neighborhoods. Concerns included noise and nuisances from Airbnb and other similar units, as well as taking up highly needed affordable housing.

But there's been no substantial movement on the proposal recently.

Other municipalities in northern Michigan have taken action in recent years to limit short-term rentals, Crain's Detroit reported.

The state legislature has debated whether or not to prohibit local bans on short-term rentals, per MLive.

Short-term rentals rising nationally, but Detroit host income below average

Detroit Airbnb hosts made 50% less than the typical host in the U.S last year, according to company figures shared with Axios.

Detroit Airbnb hosts made 50% less than the typical host in the U.S. last year, according to company figures shared with Axios.Why it matters: Renting out a home is a growing way to bank extra income as the cost of living goes up, Axios&#x27; Sami Sparber reports.<ul><li>But the practice — which has stoked controversy for how it impacts the areas where rentals open — isn&#x27;t quite as fruitful in Detroit as it is in the U.S. at large.</li></ul>What&#x27;s happening: The national<a class="gtmContentClick" data-vars-link-text=" short-term rental supply" data-vars-click-url="https://www.airdna.co/blog/hottest-us-short-term-rental-cities-2023?utm_campaign=hottest_markets_2023&amp;utm_medium=email&amp;_hsmi=258921307&amp;_hsenc=p2ANqtz-9kwfuYXsQa9Orl7dQ4hdtsrog495WsGQ9e7RsiqkLsL8geNxMsyxAMMykcH029QwY0sW5_oml3CFn6msqr6dLo242zXQ&amp;utm_content=258921307&amp;utm_source=hs_email#methodology" data-vars-content-id="cb370d38-4c0f-4d80-9ac6-cc68a68f1e0b" data-vars-headline="Short-term rentals rising nationally, but Detroit host income below average" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.airdna.co/blog/hottest-us-short-term-rental-cities-2023?utm_campaign=hottest_markets_2023&amp;utm_medium=email&amp;_hsmi=258921307&amp;_hsenc=p2ANqtz-9kwfuYXsQa9Orl7dQ4hdtsrog495WsGQ9e7RsiqkLsL8geNxMsyxAMMykcH029QwY0sW5_oml3CFn6msqr6dLo242zXQ&amp;utm_content=258921307&amp;utm_source=hs_email#methodology" target="_blank"> short-term rental supply</a> reached record levels in 2022, swelling 20% year-over-year to 1.3 million listings, per new data from AirDNA, a short-term rental analysis firm.By the numbers: The typical host in Detroit earned approximately $7,000 in 2022, compared with the national median of $14,000, per Airbnb data.<ul><li>Michigan&#x27;s top five counties where hosts made the most money last year were in the U.P., northern Lower Peninsula and west side of the state: Alger, Allegan, Berrien, Marquette and Van Buren counties.</li></ul>Zoom in: Detroit hosts aren&#x27;t making a killing like in some other parts of the country. But from the visitor perspective, there are ample options — from a $309-a-night mansion with a game room and grill in <a class="gtmContentClick" data-vars-link-text="Boston-Edison" data-vars-click-url="https://www.airbnb.com/rooms/892791801717306648?adults=1&amp;children=0&amp;enable_m3_private_room=true&amp;infants=0&amp;location=detroit&amp;pets=0&amp;check_in=2023-07-09&amp;check_out=2023-07-14&amp;source_impression_id=p3_1687793255_E6O1mmK4PCcYMkaD&amp;previous_page_section_name=1001&amp;federated_search_id=f45bb7dd-a30a-42c9-aed4-2f30c13f0453" data-vars-content-id="cb370d38-4c0f-4d80-9ac6-cc68a68f1e0b" data-vars-headline="Short-term rentals rising nationally, but Detroit host income below average" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.airbnb.com/rooms/892791801717306648?adults=1&amp;children=0&amp;enable_m3_private_room=true&amp;infants=0&amp;location=detroit&amp;pets=0&amp;check_in=2023-07-09&amp;check_out=2023-07-14&amp;source_impression_id=p3_1687793255_E6O1mmK4PCcYMkaD&amp;previous_page_section_name=1001&amp;federated_search_id=f45bb7dd-a30a-42c9-aed4-2f30c13f0453" target="_blank">Boston-Edison</a> that sleeps 12 to an $84-a-night guest suite in <a class="gtmContentClick" data-vars-link-text="North Rosedale Park" data-vars-click-url="https://www.airbnb.com/rooms/31694361?adults=1&amp;children=0&amp;enable_m3_private_room=true&amp;infants=0&amp;location=detroit&amp;pets=0&amp;check_in=2023-07-31&amp;check_out=2023-08-05&amp;source_impression_id=p3_1687793396_LaIUwYDQGgEFPxBt&amp;previous_page_section_name=1001&amp;federated_search_id=178a8c44-7636-4f1e-99dd-66cc28ec8659" data-vars-content-id="cb370d38-4c0f-4d80-9ac6-cc68a68f1e0b" data-vars-headline="Short-term rentals rising nationally, but Detroit host income below average" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.airbnb.com/rooms/31694361?adults=1&amp;children=0&amp;enable_m3_private_room=true&amp;infants=0&amp;location=detroit&amp;pets=0&amp;check_in=2023-07-31&amp;check_out=2023-08-05&amp;source_impression_id=p3_1687793396_LaIUwYDQGgEFPxBt&amp;previous_page_section_name=1001&amp;federated_search_id=178a8c44-7636-4f1e-99dd-66cc28ec8659" target="_blank">North Rosedale Park</a>.Plus, Airbnb affords visitors more options to stay outside downtown than the city&#x27;s hotels clustered in the central business district.<ul><li>The majority of Detroit&#x27;s Census tracts (60%) had at least one Airbnb listing but no hotels as of last year, with 65,000 total guests staying in those areas last year, Axios&#x27; Alex Fitzpatrick reports.</li></ul>Yes, but: Airbnb&#x27;s presence outside traditional tourism areas, like on residential streets, is controversial. Hosts are sometimes accused of effectively reducing the supply of local housing and thus driving up prices.Flashback: A former Detroit City Council member <a class="gtmContentClick" data-vars-link-text="proposed legislation" data-vars-click-url="https://www.crainsdetroit.com/hospitality/group-fighting-proposed-airbnb-short-term-rental-rules-detroit" data-vars-content-id="cb370d38-4c0f-4d80-9ac6-cc68a68f1e0b" data-vars-headline="Short-term rentals rising nationally, but Detroit host income below average" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.crainsdetroit.com/hospitality/group-fighting-proposed-airbnb-short-term-rental-rules-detroit" target="_blank">proposed legislation</a> in 2019 to try and limit the impact of short-term rentals on the city&#x27;s neighborhoods. Concerns included noise and nuisances from Airbnb and other similar units, as well as taking up highly needed affordable housing.<ul><li>But there&#x27;s been no substantial movement on the proposal recently.</li><li>Other municipalities in northern Michigan have taken action in recent years to limit short-term rentals, <a class="gtmContentClick" data-vars-link-text="Crain&#x27;s Detroit reported" data-vars-click-url="https://www.crainsdetroit.com/real-estate/rental-cap-no-quick-fix-northern-michigan-housing-crunch" data-vars-content-id="cb370d38-4c0f-4d80-9ac6-cc68a68f1e0b" data-vars-headline="Short-term rentals rising nationally, but Detroit host income below average" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.crainsdetroit.com/real-estate/rental-cap-no-quick-fix-northern-michigan-housing-crunch" target="_blank">Crain&#x27;s Detroit reported</a>.</li><li>The state legislature has debated whether or not to prohibit local bans on short-term rentals, <a class="gtmContentClick" data-vars-link-text="per MLive" data-vars-click-url="https://www.mlive.com/public-interest/2021/06/lawmakers-look-to-stop-cities-from-banning-short-term-rentals-but-some-say-they-add-to-housing-shortage.html" data-vars-content-id="cb370d38-4c0f-4d80-9ac6-cc68a68f1e0b" data-vars-headline="Short-term rentals rising nationally, but Detroit host income below average" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.mlive.com/public-interest/2021/06/lawmakers-look-to-stop-cities-from-banning-short-term-rentals-but-some-say-they-add-to-housing-shortage.html" target="_blank">per MLive</a>.</li></ul>

Sami Sparber

Featured stories

Saving for a Metro Detroit mortgage

Short-term rentals rising nationally, but Detroit host income below average

Metro Detroit apartments smaller than U.S. average

Starter homes are more affordable in Detroit than most other cities

Commutes are down from 2019