Downtown housing market leans towards rentals

Developers are finding the downtown rental market remains strong, and is acting as a testing-ground for future condo buyers.

Excerpt:

In downtown Detroit, [Jon Grabowski, president of Esquire Properties] called the rental market “low-hanging
fruit” with a steady supply of younger renters who can afford $1,200 a
month rental payments but aren’t quite ready for ownership.

Downtown’s
rental inventory includes newer developments like the Kales Building
and Merchant’s Row as well as large older developments such as
Riverfront Towers and Millender Center. Hendricks & Partners
estimates downtown Detroit apartment occupancy at more than 93 percent.

“We
need that mix of condo owners and the rental pool,” Grabowski said.
Esquire, in fact, plans to open a new Woodward Avenue office that will
promote both for-sale housing and rentals.

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