Every single large-scale apartment development built in Detroit this year has been a luxury development.
That’s according to new data by compiled by RentCafe. In 2017, 76% of developments in Metro Detroit were luxury; and this year so far, every single apartment developed has been on the high end.
This is in line with a national trend. Nationally, about 87% of all large-scale apartment buildings completed in the first half of 2018 are high-end.
It shows the importance of set-asides for affordable housing, given widespread market forces oriented toward building housing only for rich folks.
The city of Detroit, when incentive money is provided, often mandates that 20 percent of the units are rented at “affordable” rates, meaning in-line with a percentage of the median income of the metro area. The percentage varies with the project.
The apartment construction data was provided by Yardi Matrix, a RENTCafé sister company specializing in market intelligence on multi-family properties of 50 units or more in more than 130 U.S. markets.
It classifies luxury rental properties as those that fall into the discretionary and high mid-range price categories with luxury finishes.