The Detroit Regional Chamber has released its fourth-annual State of the Region report, which provides an economic, educational, social and civic overview of the 11-county region, along with comparisons against peer and national benchmarks.
“This past year was a year of tremendous growth. The renaissance in Detroit — and the region — is private sector led, technology focused and sustainable,” writes Sandy K. Baruah, President and CEO of the Detroit Regional Chamber, in his foreword.
Here are the highlights*:
I. Residential Construction
Detroit’s residential real estate construction growth rate since 2011 is:
- 4th among peer regions.
- Up 4.9% year over year.
- 21.9% greater than the national average.
Detroit’s per capita income growth rate since 2011 is:
- 2nd among peer regions.
- Up 6.2% year over year.
- 4.1% greater than the national average.
In the Detroit region, unemployment decreased from 16.7% in 2009 to 4.6% in 2017, matching the national average in July.
IV. Home Values
Detroit’s media home value growth rate since 2011 is:
- 1st among peer regions.
- Up 6.4% year over year.
- Nearly double the national average.
V. Public Transportation
Nearly 45-million trips were taken on the Detroit region’s four public transport systems in 2016, representing a 5.1% increase year over year.
In May 2017, Detroit opened the QLine to the public, linking downtown Detroit to New Center. During its four-month free-ride promotion, the $140-million system reported more than 500,000 riders; and ridership is expected to reach 1.8 million during the first full reporting year (September 2017 – September 2018).
VI. Venture Capital
As of the time of this report, there were 141 venture-backed companies in Michigan, representing an increase of 48% over the last five years.[BONUS: As noted by Forbes on July 10, 2017, “In metro Detroit, entrepreneurial development and venture capital investment is surging,” providing the fuel for further economic growth in the region.” In the last three years, there’s been a 50% increase in Detroit-based startups, and in 2016 two-thirds of startups receiving venture capital were in sectors that would be considered non-traditional for the area: information technology (43%); and the life sciences (23%).]
In 2016, Detroit exported more than $42 billion in goods. It’s the 6th largest export market in the country.
Michigan ranks 1st in the nation in connected and automated vehicle projects (49), as well as mobility-related patents (2,583).
IX. Auto Meets Tech
Michigan automakers and suppliers are actively partnering with tech companies in research and development, and in the last year:
- FCA US LLC partnered with Google to produce self-driving Chrysler Pacifica hybrid minivans.
- Ford Motor Co. launched Ford Smart Mobility LLC to design, build and invest in emerging mobility services.
- GM invested $500 million in Lyft for a self-driving partnership.
- Uber announced plans to develop a new technology facility in metro Detroit.
- Techstars Mobility opened in Detroit as the first North American startup accelerator program focused on mobility technologies.
* Statistics are sourced from the U.S. Bureau of the Census, unless otherwise noted.
Single Family or Multifamily Real Estate Investing: What’s right for you?
For those considering, and those already deeply involved in real estate investing, the question of which is a better option;...
1031 Exchange and What it Means For Real Estate Investing
What is Section 1031? Whenever you have a gain on the sale of a real estate investment property, you generally have to pay tax...