Detroit, MI Housing Market Report

The Detroit housing market is currently experiencing a notable shift toward buyer-favorable conditions as of December 2025. With active inventory surging by 13.41% year-over-year to 12,041 units and the average time on market extending to 52 days, the sense of urgency that previously defined the market has dissipated. While the sale-to-list ratio remains at a balanced 1.0, indicating that properties are generally selling for their asking prices, the increase in available options gives buyers significantly more leverage in negotiations than they held a year ago.

Price trends over the latter half of 2025 reveal a cooling period following a mid-year peak. After reaching a high of $77,057 in September, the median home value has declined for three consecutive months to settle at $75,511 in December. This represents a 1.6% year-over-year decrease. This downward pressure on sale prices stands in stark contrast to the rental market, where median rents have climbed nearly 4% to $1,300. This divergence suggests that while high interest rates or economic caution may be dampening homeownership demand, the fundamental need for housing in the Detroit-Warren-Dearborn metro area remains robust.

Looking ahead, the Detroit market presents a unique window of opportunity for investors and first-time buyers. Sellers must recalibrate their expectations, as the 11-day increase in median days on market suggests that overpricing can lead to stagnation. For buyers, the combination of softening purchase prices and rising rental yields creates a compelling case for acquisition, particularly for those looking to convert properties into long-term rentals. However, stakeholders should remain mindful of the broader macroeconomic climate, as the current inventory build-up suggests that price appreciation may remain muted in the short term.