Increasing hurricane activity and strength could bolster Detroit’s position as the number 1 city for real estate investment.
Hurricanes are displacing tens of thousands, and even hundreds of thousands of individuals. Many may not be able to return to hard hit coastal areas for quite sometime. Many real estate investors are also feeling the pain, and are likely looking for less risky destinations to invest in property, and to diversify too. While these tragic stories shouldn’t be minimized or taken advantage of, it could bode well for southeast Michigan real estate, and the local economy.
New Record Setting Storm Activity
Every investment, everywhere can have some level of risk. There are wildfires, sinkholes, terror attacks, and tornadoes. Yet, hurricane zones can present an extra level of risk. It is typically not a question of if properties in these areas will be hit, but when, how hard, and how often. Recently we seem to have seen an uptick in major storm activity. Hurricane Harvey set a new record for damage in Houston. Irma was named the strongest storm ever, and in early September there were at least 3 active hurricanes all at the same time. That’s with over 2 months left to go, in what is expected to be a highly active hurricane season. Hundreds of thousands of people have been evacuated, and thousands of housing units are likely destroyed, and will be unlivable for quite some time. That is tragic for individuals and families who are seeing their homes and live directly affected. Out of area investors are also feeling the pinch in their portfolios, and some could lose their retirement homes and nest eggs.
Detroit is Number 1
HousingWire has ranked the Detroit metro area as the number one city for investing in rental properties. This is based on nation leasing returns of 17%, along with strong rental growth. The city is also one with some of the most affordable homes in the country, and has room to absorb more residents. In terms of natural disasters Michigan is one of the safest states to live and invest. This could lead many to relocate here, and begin investing here. This would help existing property owners and landlords, the local economy and community, and those coming in.
Michigan could be a top choice for those affected by major hurricanes. This can apply to both finding new housing, and investment property. Low prices make entry easy, while increased demand could only propel current returns even further.