Detroit's residential real estate market continued its steady appreciation in the first quarter of 2026, with the median sale price reaching $92,500 -- a 7.2% increase from Q1 2025, according to data compiled from the Realcomp MLS and Wayne County deed recordings.
Neighborhood-by-neighborhood breakdown
Price growth remains uneven across the city:
| Neighborhood | Median Sale Price | YoY Change |
|---|---|---|
| Riverside | $198,000 | +11.3% |
| Bagley | $165,000 | +9.8% |
| East English Village | $142,000 | +8.5% |
| Warrendale | $110,000 | +7.1% |
| Morningside | $78,000 | +5.4% |
| Belmont | $62,000 | +3.2% |
Inventory remains unusually tight
Active listings in the city of Detroit stood at approximately 1,850 at the end of Q1 2026, down from 2,100 a year earlier. The months-of-supply figure sits at 2.3 months, well below the 6-month threshold that defines a balanced market.
The tightest inventory is in the $80,000-$150,000 range, where move-in-ready single-family homes routinely receive multiple offers within the first week of listing.
What it means for investors
Appreciation is a tailwind for buy-and-hold investors, but it also compresses entry-level cap rates. A property that penciled at an 8% cap rate two years ago at $75,000 may now cost $85,000 with the same rent, bringing the cap rate closer to 7%.
That said, Detroit's rent-to-price ratio remains among the most favorable in the country. The median rent for a single-family home in the city is roughly $1,100/month, producing a gross rent multiplier of approximately 7.0 -- still well within cash-flow territory.
The wildcard: interest rates
With the 10-year Treasury hovering around 4.4% and mortgage rates in the mid-6% range, leveraged investors are seeing higher debt service costs. The spread between cap rates and borrowing costs has narrowed, making all-cash and private-money transactions more competitive relative to conventional financing.
We update our property portfolio weekly to reflect the latest comps. Browse current listings or contact us for a neighborhood-level market analysis.