An influential nonprofit believes Detroit can grow its lagging downtown population by more than 50% in five years.
Why it matters: Leaders want to promote the city core as once again a place to live, not just visit or work.
- Yes, but: Apartment development also faces financing gaps, policy hurdles and rental prices that don’t always match what people can afford.
Driving the news: Downtown has enough housing demand to support 3,600-4,800 new market-rate units and 1,600-2,000 new affordable housing units in the next five years, per a new study commissioned by the Downtown Detroit Partnership (DDP).
State of play: DDP is targeting a 10,000 city core population, up from the current 6,500.
- The study also found market potential for up to 17,000 total units in greater downtown, including in Corktown, Midtown and elsewhere.
- It’s based on Zimmerman/Volk Associates’ proprietary target market methodology.
Context: To satisfy this demand, downtown needs a greater diversity of size and pricing — and to work on solutions for cost-prohibitive taxes and property insurance, DDP CEO Eric Larson tells Axios.
- Larson says his nonprofit’s role on this issue is in policy advocacy and in promoting downtown as a place to live and build.
By the numbers: Reflecting economic challenges, 72% of households would prefer to live downtown in more affordable for-rent apartments, versus for-sale properties like condos.
- Target residents are majority single or couples without children, and can support a rent price range of $1,400-$3,750 a month.
Zoom out: Detroit’s downtown population lags behind other cities. Philadelphia’s center city had a population of 55,500 and downtown Cleveland had 27,700, per the DDP, based on 2018-22 census estimates.
- The issue is tied to Detroit’s seven decades of population loss.
- Plus, many jobs downtown are held by commuters and fewer than 10% of downtown’s buildings were residential as of 2024.
Between the lines: Nearly half of the demand comes from outside Wayne County — a trend crucial for regrowing the city’s tax base.
- Another 40% of demand to live downtown comes from inside the city limits.
- Yet, in order for the full city to thrive, neighborhoods outside downtown that have experienced great vacancy must retain and grow their populations, too.
The last word: “The partnership is very focused on making sure that the legacy aspects of our city are never forgotten,” Larson says…