Although homes sales were down over 20% in some Detroit suburbs last year, the city itself saw a modest increase of 6%, and residential construction is at a 30-year high.
"For decades, Detroit was known more for population flight and abandoned homes than for new construction. Today, the Detroit market is keeping some home builders and real-estate agents in business.
Sales of existing houses were up 6% in Detroit last year, compared with a drop of 14% for all of Michigan and declines of 20% or more in Oakland, Monroe and Livingston counties.
New residential construction in the city, meanwhile, is at its highest point in more than 30 years. New permits for single-family construction are more than 10 times higher than a decade ago, while the total for southeast Michigan as a whole is down more than 60% over the same period. The city of Detroit led the seven-county metro region in new residential construction in 2006, the regional planning group SEMCOG reported Friday.
Detroit issued 739 permits for new single-family houses, townhouses and multifamily units, the most of any community in the region.
The reasons for Detroit's emergence are complex. Builders like Fielek mostly attribute the upbeat market to a desire for urban living. That trend remade downtowns from Seattle to Baltimore during the last 25 years and has finally arrived in Detroit and suburbs like Royal Oak and Birmingham.
Builders say their typical customers are empty nesters and young professionals and other people who want to live, work, shop and be entertained in a pedestrian-friendly area.
"Everybody wants walkability," said Herb Strather, a Detroit-based developer and partner in Woodbridge Estates."
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