Abstract

The residential market for the city of Detroit has had a storied history full of dramatic changes. The first of those came during the 2008 global recession when the prices dropped to new lows and then steadily recovered, only to be halted just as the changes were beginning to truly show. The newest change affecting the market is the recent pandemic due to Covid-19. Among the topics discussed, the impact of the virus on both buying and selling is important. By analyzing the effects on the sale of homes, information about the future of the market can be obtained as there are patterns that often happen as the economy goes through its repeated up-and-down cycles. By analyzing the virus’s effect on buying homes, projections for future behavior and buying patterns may be observed. Furthermore, the impact on the supply of homes and how this affects the price of the homes is important as shifting in the supply of a market has economic implications for the price and for the future. Interpreting the demand changes is equally important as demand does drive a market. Regardless of the supply, demand is an important factor by itself as it indicated an interest in a market. Considering Detroit’s history as thousands of residents fled, bringing back interest in the market has been a vital part of the revitalization efforts. By evaluating what factors have contributed to such a shift in supply and determining how those factors are bound to change, a better understanding of both the present and future residential economies. Contributions to the supply of the markets have been mainly due to personal decisions such as the decision to hold off listing properties until the pandemic is over or not having anywhere to go once their house is sold. Contributions to the shift in the demand for houses are due to a range of factors that affect the ability to actually purchase a home such as stimulus checks or interest rates. Aspects that influence the increasing prices without direct regard to supply or demand include the increased costs of building houses as builders have had to deal with increased shipping costs and increased overhead of material as well as the problem of delays due to workers getting the coronavirus. Additionally, an analysis was carried out of where the market continues to go in the future, based upon current projections, as well as what the current boost means for the city and those already owning or buying properties in Detroit, MI

Keywords:Detroit; Residential market; Covid-19; Supply; Demand; Prices; Building materials; Constructions delays