The Challenges and Opportunities Facing Detroits Housing Market

Affordable housing is on the short list of the most significant issues facing Detroit, Southeast Michigan, and the U.S. as a whole. Numerous research papers and news stories point to how housing costs in Detroit and elsewhere have risen markedly, especially in recent years. Those familiar with Detroit recognize that the local housing market presents a unique set of challenges given its historical and current market dynamics. To understand these challenges better and identify solutions, the Federal Reserve Bank of Chicago put together a strong program to explore Detroit’s housing market. The program examined the cyclical, structural, and systemic forces behind those rising costs and how they can impede efforts to grow the supply of affordable housing in Detroit. In addition, our program looked at existing and potential opportunities to increase the supply—as well as the demand—for affordable single-family and multifamily housing in Detroit and broader Southeast Michigan.

The program’s featured developers, builders, educators, agency staff, and housing advocates discussed Detroit’s affordable housing challenges and opportunities. The program content gives the historical context for Detroit’s housing market, which sets the stage for the tough conversations needed to navigate the way forward.