People continue to write bigger rent checks for the chance to live in or around downtown Detroit, with some mainstream rents at levels once reserved for penthouses and other ultra-luxurious spaces. Driving the higher prices is a demand for apartments at all price ranges in downtown, Midtown and Corktown that still exceeds the supply of available units — despite a mini-boom of construction and building rehabs. According to local experts, the going rent for newly built or newly restored Class A apartments is up to about $1.70 per square foot in Midtown and $2 per square foot in downtown. It was only five years ago that $1.25 was a common number. But the hot rental market has inevitable side effects, with some university students and young professionals complaining theyve been priced out of the market or pay too much for comfort. Tenants in existing market-rate buildings in Midtown experienced rent hikes this year averaging about 5% and about 14% over the past three years, said Sue Mosey, president of the nonprofit Midtown Detroit Inc. We have priced out a lot of the undergraduates from the neighborhood because they typically need very cheap rent, Mosey said. We think thats a missing market piece right now. Landlords raised rents 3% to 10% this year in some market-rate apartment buildings as new, high-profile redevelopment projects also burst on the scene at price points that would have been unimaginable just three years ago. The momentum is carrying over to Detroits once-stalled condo market, which experienced similar price increases this year and saw the conversion of some former rental units. While some new and planned buildings in Midtown set aside 20% or more of their units for individuals or families with below-average incomes, not all demographics can afford the new rents. NEW RENT LEVELS Two redeveloped downtown buildings set new rent levels this year for the upper-end market. The first to open in July was the Albert, 1214 Griswold in Capitol Park, which most recently was a home for low-income seniors. The original 1929 office building, designed by Albert Kahn, underwent an $8-million total renovation. The Albert caused a stir in the market by introducing $2-per-square-foot rents throughout an entire downtown building that, until then, were typically seen only in showcase apartments, usually with rare and breathtaking views. Some renters are experiencing sticker shock. Its the price for the size of the units, said Albert tenant Kelly Lewis, 31, who pays $1,415 a month for a roughly 670-square-foot one-bedroom unit and a parking spot. Its a per-square-foot price she called outrageous. Despite those misgivings, Lewis said she moved in last summer because she was pressed for time and didnt see many other options available. She hopes to find less expensive housing next year. I cant wait until my lease is up, she said. freep/story/news/local/michigan/detroit/2014/12/07/rents-keep-going-downtown-detroit/20019111/
Posted on: Mon, 08 Dec 2014 03:08:15 +0000
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