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Detroit just hit a housing milestone that would have been unthinkable a decade ago: the median home sale price in the city has climbed into the six figures. In June 2025, the typical Detroit house sold for over $100,000, the first time ever values have reached that benchmark. That price is roughly one-third higher than it was a year earlier, reflecting a dramatic 32%+ surge in values this past June alone. For a city long known for ultra-affordable real estate, crossing the $100K mark is a big deal. It signals a new chapter in Detroit’s ongoing comeback and has plenty of locals scratching their heads (and checking their home equity).
In this article, we’ll break down why Motor City home prices are rising so fast, what’s happening in different neighborhoods, and how this affects Detroit buyers and sellers. The tone is conversational, like you’re getting insights from that friendly neighbor who’s lived here forever and happens to be a top real estate expert. Let’s dive into the story behind Detroit’s housing heat-up, with real local insight and a clear view of the road ahead.
A Six-Figure Milestone for Detroit Housing
Not too long ago, many people assumed you could snag a Detroit house for the price of a used car. (Remember those headlines about $1 houses during the foreclosure crisis?) But times have changed. June’s median sale price in the city hit about $103,000, according to a report by RE/MAX of Southeastern Michigan, the first time it’s ever broken the six-figure barrier. For context, just last June the median was around $78,000. In other words, Detroit home values jumped roughly 32% year-over-year, an almost unheard-of leap for an established market.
This milestone is striking given that Detroit’s prices are still relatively low compared to other areas. Metro Detroit’s overall median home price is around $295,000, and the national median is about $422,800. So a $100K house in Detroit is still a bargain by comparison. But locally, crossing that threshold carries huge symbolic weight. It’s a far cry from the days when distressed Detroit properties were selling for pennies on the dollar. As one longtime Detroit realtor, Katie Wheeler, put it: “People are still expecting Detroit to have $20,000 houses for sale in good condition, and that hasn’t been the case for a few years now”. In fact, the market has shifted so much that some buyers who **“barely qualified” for mortgages before “definitely do not qualify” at today’s prices, Wheeler said. The era of the ultra-cheap Detroit fixer-upper is largely over, at least if you want a move-in-ready home.
What’s especially interesting is that Detroit’s price growth is outpacing just about everywhere else in Michigan. In June, Detroit saw the largest spike in sale prices in the region, even as the rest of Metro Detroit had more modest gains. By comparison, Wayne County overall (including Detroit) saw about a 16-17% increase (to a $223,000 median) and Oakland County saw only single-digit growth. Macomb County actually had a slight dip (0.8% lower) than last year. In short, Detroit proper is the hot spot. Homes in the city are appreciating faster than those in many suburbs, shrinking (ever so slightly) the long-standing gap between city and suburban property values. Real estate really is “deeply local”, as Jeanette Schneider of RE/MAX of Southeastern Michigan noted, some areas are seeing price reductions and longer time on market, while others (like Detroit) are still trending upward.
It’s worth noting, too, that fewer homes are changing hands in Detroit even as prices climb. This June, the number of Detroit home sales was down by double-digits compared to last year. That might sound surprising, high demand usually means more sales, but it hints at a key factor in this market (which we’ll explore next): limited supply. There may be plenty of eager buyers, but not enough affordable listings to go around, so total sales have actually dipped. Meanwhile, the properties that do sell are going for higher prices, pushing up that median. In Detroit, houses also sold a bit faster on average this summer (around 42-45 days on the market, down from ~48 days the year prior). In other words, well-priced homes are getting snatched up in about a month and a half, which is a touch quicker than before, a sign that demand is keeping up with the increased supply.
So, what’s driving this surge in Detroit home prices, and how did we get here? Let’s break down the key factors behind the trend.
Why Are Detroit Prices Rising So Fast?
Several homegrown forces have combined to propel Detroit’s median price upward. This isn’t some random blip, it’s the result of years of change in the city’s real estate landscape. Here are some of the biggest reasons Detroit’s home values are soaring in 2025:
- Fewer “Bargain Basement” Homes on the Market: Detroit’s reputation for super-cheap houses came from an era of high foreclosures and abundant fixer-uppers. Now, many of those dilapidated properties have been demolished or renovated, and the fire-sale foreclosures have largely worked through the system. That means the low end of the market has been hollowed out; there are far fewer habitable homes selling for $20K–$30K than a decade ago. With the cheapest tier of housing drying up, the median naturally rises. (Think of it like this: if you remove the bottom 10% of sale prices, the middle price jumps up.) As a result, Detroit’s “typical” house today is worth a lot more than the typical house was worth in, say, 2015. This doesn’t mean every house got fancy, it means the truly dirt cheap deals are much less common. Even Land Bank auctions and handyman specials often fetch higher prices now due to competition.
- Investors Have Pulled Back (Leaving Room for Regular Buyers): For years, Detroit was a playground for real estate investors, from small local flippers to out-of-state landlords, all hunting for cheap properties to buy and either renovate or rent out. But with prices rising so sharply, Detroit is no longer the easy-profit investor heaven it once was. As values surge, many investors are hitting the pause button because the math isn’t as enticing when a house costs $100K versus $30K. The upside? Local first-time buyers are getting more opportunities to purchase homes without being outbid by cash investors. Realtor Katie Wheeler observed that the recent price jumps have “kept investors at bay, giving first-time homebuyers more opportunity.” That’s great news if you’re a Detroit renter hoping to become a homeowner; you might face less competition from wholesale buyers than in years past. However, it also means you’ll be paying a higher price than those investors would have a few years ago.
- Strong Demand from Homeowners (and a Shift in Perception): There’s a psychological element here too. Detroit’s image as a place to live has improved in the last decade, both locally and nationally. Young professionals, creative entrepreneurs, and even families are increasingly open to buying in the city, not just in the suburbs. As neighborhoods stabilize and amenities improve, more buyers are saying, “You know what? Detroit is an option for us.” This boosts demand for homes in certain desirable areas of the city. Places like East English Village, the University District, Bagley, and Grandmont Rosedale, neighborhoods with solid housing stock and community vibes, have seen competitive bidding and rising prices as new buyers move in (often rehabbing older homes with character). Even formerly overlooked areas are seeing fresh interest when a renovated house hits the market. Detroit is cool again, and people want to be part of its resurgence. All of that contributes to more demand for a limited supply of move-in-ready homes.
- Limited Supply of Homes for Sale: We touched on this, but it’s crucial: inventory in Detroit has not exploded, even as more sellers list homes than in recent years. In fact, the city’s for-sale inventory in June was only about 2% higher than a year prior (roughly 2,400 homes on the market, according to MLS data). Region-wide, inventory jumped over 20% in the same period, the most homes for sale in any June in the past 5 years. But Detroit’s slice of that pie remains relatively small. Many Detroit homeowners are staying put (especially those who locked in ultra-low interest rates in 2020–2021), and new construction in the city is still limited. When you combine steady or growing buyer interest with only a slight increase in listings, you get competition and higher prices. It’s classic supply and demand. In some Detroit neighborhoods, there are simply more buyers than there are homes for sale in their price range. So the homes that do hit the market tend to get snapped up, pushing prices upward. As Realcomp CEO Karen Kage noted, even with more listings overall this summer, “home sellers experienced another median sales price jump and a new all-time high… The market is healthy as the summer season continues.” For Detroit, “healthy” has translated into rising values.
- Broader Economic Factors: Let’s not forget the backdrop: While Detroit’s boom is local, it’s also happening amid a weird moment for housing nationally. Interest rates rose over the past year, which usually cools prices, but at the same time, Millennials and Gen Z are entering their prime homebuying years, creating strong demand, and construction of affordable homes hasn’t kept up. Metro Detroit’s suburbs have seen prices hold steady or rise slightly despite higher mortgage rates, largely due to low inventory. In the city, where starting prices were low, buyers might be somewhat less rate-sensitive (a $100K mortgage is still cheaper than a $400K one in Oakland County, even at the same rate). Plus, various Detroit-specific incentives (like tax abatements in certain neighborhoods, down payment assistance programs, etc.) have helped some buyers afford homes, sustaining demand. Finally, Detroit’s economy, while not booming like Austin or Nashville, has been stable and improving. Job growth in sectors like tech, healthcare, and of course the ever-resilient auto industry has provided more stability for local buyers than in the bankruptcy days. A rising tide of employment and investment in the city (new factories, the Gordie Howe International Bridge project, Ford’s Corktown campus, etc.) gives people confidence to buy homes in Detroit, anticipating that values will keep improving.
In short, Detroit’s price surge is a cocktail of reduced supply of cheap homes, steady demand from a new generation of buyers, and a rebounding city narrative. It’s not just one factor, it’s all of the above. And it’s creating a “bifurcated market,” as experts call it: Detroit is on a fast upswing, even while some pricier suburbs are leveling off.
To see where new residents are flocking in Metro Detroit and how it impacts Detroit’s market, read our breakdown of the region’s hottest growth cities
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How Detroit Compares to the Suburbs (and Why It Matters)
Even after this surge, let’s be clear: Detroit homes are still far more affordable than those in many suburbs. The city’s new $100K+ median is roughly one-fourth of Oakland County’s median (around $410K). In fact, Oakland County’s median price is four times higher than Detroit’s! And even in Wayne County as a whole (which includes Detroit plus suburban cities like Livonia, Dearborn, etc.), the median is about $223K, more than double Detroit’s. So while Detroit has caught up with itself (hitting a record high), it’s still a bargain compared to neighboring markets. This relative affordability is one reason demand remains solid. For someone renting in Royal Oak or Ann Arbor, the notion of owning a home in Detroit for ~$100K can be very appealing, even factoring in city taxes and insurance.
However, the speed of Detroit’s price growth is outpacing the ‘burbs. Most Metro Detroit counties saw modest single-digit price increases year-over-year, or even a slight dip, as in Macomb’s case. Detroit’s ~30% leap is in another league entirely. Part of that is because Detroit had more room to grow (going from $80K to $100K is a bigger percentage jump than, say, $300K to $315K). But it also suggests that the demand for city living has momentum right now. The pandemic era saw some urban homebuyers turn toward suburbs for space, but Detroit appears to be benefiting from a swing back in interest. Neighborhoods with strong community ties and decent housing stock, for example, East English Village on the east side or Grandmont Rosedale on the west side, are seeing lots of buyer activity akin to what you’d find in a suburban market (open houses with multiple offers, homes selling above asking, etc.).
Meanwhile, some affluent suburbs have cooled just a tad. Oakland County’s prices are up only about 6% year-over-year (from $385K to $410K), and Macomb’s slight drop indicates a bit of rebalancing there. This divergence underscores Schneider’s point that “real estate remains deeply local”. Within Metro Detroit, we have micro-markets moving in different directions. Detroit is in a growth spurt, while a few suburbs are catching their breath after years of run-up.
For Detroit homeowners, this is mostly positive news; your investment is gaining value faster than many others in southeast Michigan. For Detroit buyers, it means the window of ultra-low prices is closing. But relatively speaking, the city is still the most budget-friendly part of the region to buy a house. You can get a three-bedroom Detroit home for what amounts to a down payment on a similar home in the suburbs. That’s the silver lining here: even as prices climb, Detroit’s housing remains accessible for many first-time buyers (especially with creative financing or local grants).
One thing to watch going forward is how these trends affect migration and development. If Detroit stays significantly cheaper than the suburbs, it will continue drawing value-seeking buyers, supporting prices. And as more people invest in Detroit homes, you often see ripple effects like better upkeep, more retail opening up, and higher tax revenue for city services, all of which can further boost desirability. In that sense, this price milestone could be a turning point that attracts even more interest to the city’s neighborhoods.
Explore Detroit’s diverse neighborhoods in our detailed guide to districts across the city
What It Means for Detroit Homebuyers and Sellers
So, you’re a Detroiter (or aspiring Detroiter). How does this news impact you? Let’s break it down by audience, because rising prices are a double-edged sword depending on your perspective.
For Homebuyers in Detroit: If you’re looking to buy a house in the city, the main takeaway is that you may need to adjust your expectations and strategy. Here’s some friendly advice from a local perspective:
- Budget for Higher Prices (and Possibly Higher Rates): The days of routinely finding homes under $50K in livable condition are mostly behind us. While you can still score a fixer-upper at a lower price, anything move-in-ready in a decent neighborhood is likely going to cost significantly more than it would have a few years ago. Talk to your lender and get pre-approved for a mortgage above what you think you’ll need; you don’t want to fall in love with a $100K house only to find you qualify for $80K. Also factor in that interest rates in 2025 are higher than the ultra-low rates of a couple years back, which affects your monthly payment. In short, plan your finances with a buffer. Buyers who “barely qualify” at previous price points may need to save a bit more or reduce other debts, as Wheeler noted.
- Move Quickly and Be Competitive: With homes selling in around 6 weeks on average (and many in just days if they’re a great deal), you’ll want to stay on top of new listings. When a house that meets your needs hits the market, go see it ASAP. If it’s priced well and in good shape, assume other buyers are interested too. It’s not 15-offer frenzies like some hot markets, but Detroit’s best listings do receive multiple offers. You might consider writing a strong offer near or at asking price (some “hot homes” even still go above list). Of course, do your homework, look at recent sale comps in the neighborhood, so you don’t overpay. A good local agent can help advise on value (shameless plug: the Motor City Realty team watches Detroit prices daily and can tell you what’s fair). Which leads to…
- Work with a Local Expert: Detroit’s market has quirks, from differing conditions block to block, to unique things like the Neighborhood Enterprise Zone tax abatements, Land Bank properties with quirky deed restrictions, etc. It pays to have a real estate agent or advisor who really knows the city. They can alert you to new opportunities in your budget, help craft offers that appeal to sellers, and steer you toward up-and-coming areas that might still be affordable now but growing in value. Plus, they’ll keep you grounded so you’re not chasing unicorns (sorry, that perfectly restored 4-bedroom colonial in Indian Village for $50K does not exist!). This is where our local expertise comes in, we’re here to guide you honestly so you can find a great home and a great investment.
- Consider “Emerging” Neighborhoods: If the popular districts are out of your price range, don’t fret. Detroit is a city of over 100 neighborhoods, and many are on the upswing even if they’re not making headlines. Maybe Corktown, Midtown or East English Village are too pricey now, but have you looked at areas like Morningside, Jefferson Chalmers, or Russell Woods? These places have beautiful houses and are seeing new interest. Sometimes going just a little further from downtown or the Woodward Corridor can yield a much better bang for your buck. Keep an open mind and explore different parts of the city. You might be surprised at the hidden gems where you can still find a solid home under that $100K median (for now!).
For Homeowners & Sellers in Detroit: Congratulations, you might be sitting on some newfound equity! Here’s what this market means for you:
- Your Home’s Value Has Likely Risen: If you’ve owned your Detroit home for more than a couple years, chances are it’s worth substantially more today. The median is up 32% year-on-year, and even more compared to five or ten years ago. Take a moment to appreciate that (finally) owning a home in the city is paying off financially. It wasn’t always the case that Detroit real estate was a good investment, but the tides have turned. Check on your home’s current value; you might be pleasantly surprised. (If you’re curious, our Motor City Realty team can provide a free home value analysis with local comps, no strings attached.)
- It May Be an Opportune Time to Sell, But Price Wisely: With buyer demand high and inventory still relatively low, Detroit sellers are in a favorable position. If you’ve been thinking about selling, maybe you need a bigger place or you’re relocating, this could be the summer to do it. Homes are generally selling faster and for more money than in recent memory. That said, keep your expectations realistic: today’s buyers are savvy and budget-conscious. They’ll pay top dollar for a home that’s move-in ready or nicely updated, but if your house needs significant work, expect the market to price that in. Overpricing a fixer-upper can backfire (even in a hot market). Work with your agent to set a competitive listing price that will attract multiple bids. The goal is to create enough interest to possibly bid above asking, rather than aiming too high and getting no takers. Overall, though, selling in Detroit now is likely to be a smoother and more profitable experience than at any time in the last 15 years.
- Invest in Your Neighborhood: Not directly a “selling” tip, but worth mentioning: rising prices often go hand-in-hand with changes in the community. Longtime residents may be concerned about property taxes increasing or new development popping up. Stay engaged with your neighborhood association or block club. By being an active community member, whether it’s organizing a clean-up, attending city meetings, or just being a good neighbor, you can help ensure that Detroit’s resurgence benefits current residents and not just newcomers. The best neighborhoods are the ones where old and new residents work together. Plus, maintaining that community feel is part of what keeps demand strong (people pay a premium for friendly, safe, well-kept areas).
For Renters in the City: You’re not buying or selling yet, but this trend might affect you too. As home values rise, landlords may look to increase rents or even sell their rental properties to owner-occupants. If you’re renting in a building or house that goes up for sale, there’s a chance it might not remain a rental. It could be a great time to consider buying if you plan to stay in Detroit long-term. There are still programs to assist first-time buyers, and owning lets you lock in your housing cost (via a fixed-rate mortgage) instead of worrying about rising rent. We know buying isn’t feasible for everyone, but if you’re on the fence, talk to a housing counselor or lender about your options. The sooner you get in, the more you can potentially benefit from further appreciation. Detroit’s market, while hotter now, is still one of the most affordable big-city markets in America, that’s an opportunity.
Learn about down‑payment assistance and loan programs in our guide to first‑time homebuyer programs
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The Road Ahead: Staying Grounded as Detroit Grows
With all the excitement about Detroit’s median home price hitting $100K, it’s important to keep a level head. Real estate markets can change, and yearly 30% gains are unlikely to be the “new normal.” Most experts expect the market to rebalance somewhat. In fact, we’re already seeing signs of balance: Metro Detroit’s overall sales and inventory are holding steady year-over-year, indicating we’re not in a runaway bubble but a gradual normalization.
Going forward, a few things could happen: If more inventory comes on the market (say, if interest rates dip and more homeowners decide to sell, or if new construction picks up in Detroit), that could slow down price growth. Buyers would have more choices, which eases competition. On the flip side, if demand stays strong and supply remains tight, we could see continued (albeit smaller) price increases in the city. It’s also worth watching interest rates; if they rise further, some buyers may get priced out, cooling things. If they fall, it could unleash a new wave of buyers or allow current house-hunters to afford a bit more.
One thing is certain: Detroit real estate is on the radar now. Crossing the $100K median is a headline-grabber, and it reflects tangible progress in the market. This might attract more attention from outside investors or remote workers who realize Detroit is a place where they can still buy relatively low and potentially ride further appreciation. City leadership will need to balance this interest with affordability initiatives to ensure long-time Detroiters aren’t left behind. There are ongoing efforts (like down payment assistance programs, affordable housing developments, etc.) aimed at keeping housing accessible in Detroit; those will be crucial as values rise.
From a local standpoint, we remain optimistic but realistic. As a lifelong Michigander and a Detroit real estate professional, I’m thrilled to see my hometown’s housing market finally rebounding in a big way. It’s rewarding for homeowners and signals confidence in the city’s future. But I also know Detroit’s journey has never been a straight line upward. There may be bumps ahead, maybe a slow season, or a year where prices level off. And that’s okay. After all, a “healthy” market doesn’t mean perpetual double-digit growth; it means sustainable activity, where buyers and sellers can make moves without total frenzy. By all accounts, we are heading into the heart of the summer season with a stable outlook.
Bottom line? Detroit’s real estate resurgence is real, and hitting the $100K median is a major milestone worth celebrating. If you own a home in Detroit, pat yourself on the back; your investment is growing. If you’re looking to buy, don’t be discouraged, there are still opportunities, and with the right strategy you can make Detroit’s market work in your favor. And if you’re simply watching from the sidelines, keep an eye on the Motor City. Our housing story is still being written, and it’s one heck of a comeback tale.
Ready to Talk Detroit Real Estate?
As exciting as these trends are, every person’s situation is unique. Whether you’re thinking of buying your first home in Detroit, considering selling your longtime house, or just want to chat about what these numbers mean, we’re here to help. At Motor City Realty (your friendly neighborhood real estate experts), we pride ourselves on straight-talk, local knowledge, and honest advice. Reach out to us anytime for a no-pressure conversation about the Detroit market. We can help you figure out your next steps, answer questions, or even take you on a tour of some up-and-coming neighborhoods you might not have considered.
Detroit’s on the rise, and we’d love to help you rise with it. Contact Motor City Realty today to tap into our lifelong Detroit expertise. Let’s make your housing goals in the Motor City a reality!
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