Danielle Hale Chief Economist | realtors.com
Chase C. Hunter became a real estate investor in Detroit through an unconventional method: a Google search for “best places to buy cheap properties.” At the time, she was living in Houston and exploring affordable investment opportunities. The Motor City, with sites like the Detroit Land Bank Authority offering vacant properties for as little as $1,000, caught her attention.
Despite initial reservations, Hunter decided to invest. "I closed on my first two properties the same day in June of 2021," she says. "The day I closed was my very first time in Detroit." Her first property cost $2,000 and the second $1,800. Since then, she has acquired eight homes in Detroit, transforming one into her office while renovating and renting out the others.
Hunter moved permanently to Detroit last year to be closer to her investments. "The market can be a challenge to navigate if you aren’t here every single day," she explains. "Buyers have to know the culture of Detroit to understand how to invest here."
Passionate about the local market, Hunter became a real estate agent ten months ago and is launching an investment group aimed at helping others purchase and rehabilitate homes in Detroit. "Investors come to Detroit from all corners of the country because the market is like no other," says Hunter.
Detroit’s recovery from its 2013 bankruptcy has been notable. Real estate prices bottomed out at a median sale price of $58,900 in 2009 but have since climbed annually, reaching $217,100 in 2023—a 113.3% increase over ten years earlier. According to Realtor.com® senior economic research analyst Hannah Jones, this growth is due partly to buyers taking advantage of low home prices over the past decade.
As of May 2024, the median sales price in Detroit was $250,000—10.5% higher than a year earlier—yet still significantly lower than the national median listing price of $439,950.
Detroit's resurgence has been documented extensively. Films like “Gradually, Then Suddenly: The Bankruptcy of Detroit” and reality TV shows such as HGTV’s “Bargain Block” highlight its transformation from decline to revival.
However, investing in Detroit comes with challenges. Properties often require extensive rehabilitation or come with back taxes. For instance, although Hunter's first property cost just $2,000, renovations amounted to $85,000 before it was ready for renters; her second required $130,000 due to water line issues.
Hunter now focuses on less intensive projects: "I look for homes in the $80,000 range because you spend less on repairs." Her current renovation costs typically range between $5,000 and $10,000.
Before bidding on properties, Hunter evaluates their potential based on structure quality and location. She funds renovations using business credit cards and carefully vets contractors due to past experiences where people tried taking advantage of her non-local status.
Safety remains a concern for investors like Hunter despite improvements; last year marked Detroit’s lowest crime rate in 57 years. She uses advanced security systems for her properties and researches neighborhoods thoroughly before purchasing.
"I avoid really bad areas that would be unsafe for single mothers and children," she notes.
Nevertheless, Hunter appreciates Detroit's strong community spirit: "Neighbors here keep an eye on things for you." This sense of community reinforces her commitment to continue investing locally: "Most of my neighbors have become my family."
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