Have RealT users made the right choice by investing in Detroit, a city long neglected by real estate investors because of its decline in recent decades? Against all expectations, the trend now seems to be reversing. Detroit is now showing signs of a revival that could turn the risks taken by these pioneers into particularly wise decisions. This upturn in activity marks a potential turning point, suggesting that the city's darkest days may well be behind it.
Detroit, a once under-populated city in Michigan, has recently seen a significant development. Census Bureau estimates for 2023 show that, from 1ᵉʳ July 2022 to 1ᵉʳ July 2023, Detroit's population increased by 1,852 people, reaching a total of 633,218. For the first time in 66 years, Detroit is seeing its population grow. This important milestone marks a positive turning point for Michigan's largest city and presents an attractive opportunity for RealT and holders of their REG tokens.
Upon taking office in 2014, Mayor Duggan addressed Detroit's massive blight problem and growing population. More than 25,000 homes have been demolished, mostly with federal funds. Another 15,000 homes have undergone renovations or are in the process of being treated. This has greatly improved the city's urban landscape. Currently, around 4,500 vacant homes remain, many of which are earmarked for demolition or renovation. "As we remove the blight, more and more people are moving into the right homes," explained Duggan.
With more than 400 properties located in Detroit, RealT chose the city for tokenised investments because of its low property prices offering great growth potential. As of 2019, the population numbers were not so good, but with hard work and investment, things are looking up for this Michigan city.
As the population grows, so does the demand for housing. This increase can drive up property values and rental rates. This will directly help RealT's real estate investments and, consequently, the holders of the REG token. New flats are being built, parks are holding up well and existing homes are being renovated. These developments signal a healthy property market. Since 2019, RealT has participated in these home renovations and repairs, creating more opportunities to invest in properties that are likely to increase in value.
A growing population often brings economic benefits, such as more businesses, jobs and a broader tax base. Stable population growth suggests a stable and promising property market. These factors contribute to the overall prosperity of the city, making it more attractive for future investment. From single-family residences to multi-family homes, duplexes, quadriplexes and buildings, RealT uses a strategy of economy of scale. Properties are located close together, reducing management costs, minimizing contractor travel time and making operations more efficient.
By becoming a more vibrant and dynamic city, Detroit is attracting more residents and businesses. This trend can lead to improved infrastructure, better services and a higher quality of life, making RealT properties even more attractive. The city's growth shows a turnaround after a past decline. It highlights the potential for more profitable property investments.
