Last week, Detroit Mayor Mike Duggan, City Council President Mary Sheffield, and Lt. Gov. Garlin Gilchrist were joined by community leaders and developers to celebrate the grand opening of two 100% affordable housing developments near downtown Detroit.
Brush Park Apartments, a $19-million development, features 53 affordable units and about 3,800 square feet of commercial space. A mile away is MLK on 2nd: a 33-unit, $11.5-million project that will also feature ground-floor commercial space, which officials said will be “bringing more amenities to not just residents of the building, but all Detroiters who call these neighborhoods home.” Out of the combined 86 units across both developments, 63 are considered “deeply affordable,” for those earning 60 percent area median income (AMI) or below, with the remainder being “affordable,” and available for households earning 80 percent AMI or below.
In recent years, Detroit has seen an explosion in the construction of new multifamily housing developments, many of which claim to offer “affordable housing.” Developers and city officials tout these projects as crucial steps toward revitalizing the city and addressing a long-standing housing shortage. However, while these new developments are being marketed as affordable, the reality is far from what most Detroit residents can afford.
The term “affordable housing” is defined by the U.S. Department of Housing and Urban Development (HUD) as housing that costs no more than 30% of a household’s income. But for many Detroiters, the new so-called affordable units simply aren’t accessible. The city’s average and mean household income, as of 2024, paints a stark picture of why these developments aren’t as affordable as they are made out to be. According to the U.S. Census Bureau, the median household income in Detroit is approximately $35,000, while the mean income is $44,000. This stands in sharp contrast to the actual prices of the “affordable” units being developed in the city.
Since 2019, 77 multifamily housing sites have been constructed or are under construction within the city of Detroit, with at least 50% of the units designated as “affordable.” According to data from the Detroit Housing Commission and city development reports, the total amount of investment in these properties has surpassed $1 billion as of April 11, 2024. While the city’s officials present these figures as a success, the reality is that many of these new affordable units are simply out of reach for a significant portion of the population.
On average, the new affordable units being built in Detroit are priced between $1,000 and $1,400 per month for a one- or two-bedroom apartment. This price point might seem low compared to other major cities, but for many Detroit households, it’s simply too high. At $1,200 per month, for example, a household would need to earn at least $48,000 annually to make rent affordable according to HUD guidelines. This is a substantial stretch for a large portion of Detroit’s population, particularly when you consider that a significant percentage of residents are earning far less.
Data from the U.S. Census Bureau’s 2024 survey shows that 45.6% of Detroit households earn less than $40,000 per year, and more than a quarter—26.5%—make less than $30,000 annually. Given these figures, the current “affordable” units do not serve the people who need them most. The city’s affordable housing efforts are leaving behind those who earn the least and are struggling with high housing costs relative to their incomes.
Furthermore, more than half of the affordable housing projects built in Detroit since 2019 are located within the 7.2-square-mile Greater Downtown area. This concentration of development in an already thriving part of the city raises critical concerns about the equitable distribution of affordable housing. While the downtown area has undoubtedly seen tremendous growth and revitalization, the lack of affordable housing options in other parts of Detroit’s neighborhoods suggests that these developments are catering more to an influx of higher-income newcomers than to the long-time residents who have lived through the city’s decline.
The geographic concentration of affordable housing developments within the Greater Downtown area also highlights a deeper issue: the lack of development in Detroit’s neighborhoods. Many of the city’s predominantly Black and low-income neighborhoods are being neglected in favor of developments in areas that cater primarily to an influx of wealthier residents. This gentrification trend has led to rising property values and rent prices in areas that were once affordable for Detroiters, forcing longtime residents out and contributing to a sense of displacement.
The disparity in affordable housing development in the city raises the question of whether Detroit’s housing policies are truly working for its most vulnerable residents. While the city has invested heavily in building new housing, much of it is inaccessible to those who need it the most.
To understand the disconnect, it’s important to look at the specifics of Detroit’s housing market. Detroit’s housing crisis is multifaceted, with the city facing both a lack of new construction and an aging, dilapidated housing stock. But the demand for affordable housing far exceeds the available supply. According to the Detroit Housing Commission, the city needs at least 10,000 additional affordable housing units to meet the current demand. However, as of 2024, the city is nowhere near this goal, with fewer than 1,000 affordable units constructed annually over the last five years.
This gap in supply is further exacerbated by the inability of many residents to afford the rents being charged. A 2024 survey by the Detroit Urban League found that more than 50% of renters in Detroit are cost-burdened, meaning they spend more than 30% of their income on housing. This cost burden disproportionately affects low-income households, many of whom are paying over half of their income just to secure basic shelter. For them, the new “affordable” housing developments in the downtown core are inaccessible.
If Detroit truly wants to address its affordable housing crisis, it will need to take a more comprehensive approach. First, the city must expand the definition of “affordable” to match the reality of its residents’ incomes. While the current threshold of affordability may be realistic for residents with higher incomes, it leaves the majority of Detroiters struggling to make ends meet. To better serve those who need it most, the city could consider expanding subsidies or rent control measures to lower the cost of these new units for low-income tenants. In addition, Detroit could work to incentivize developers to create housing specifically aimed at households making less than $30,000 per year.
But affordability is just one part of the solution. The city must also focus on creating more affordable housing outside of the downtown area, in Detroit’s neighborhoods, where many low-income residents live. The concentration of affordable housing in the Greater Downtown area is a direct result of the city’s development priorities, but it also perpetuates inequality by further concentrating wealth and opportunities in a few select areas. To combat this, Detroit must incentivize the development of affordable housing throughout the city—particularly in areas that have been historically underdeveloped. Neighborhoods like Brightmoor, the East Side, and parts of the West Side would greatly benefit from more affordable housing developments, providing more equitable access to housing for the city’s most vulnerable populations.
Additionally, the city can work with nonprofit developers, community organizations, and other stakeholders to prioritize community land trusts and other affordable housing models that allow residents to have a stake in their neighborhoods. These models, when implemented successfully, can create long-term affordability and prevent displacement caused by rising rents. Furthermore, Detroit should continue to explore policies like housing vouchers and rental assistance programs that help low-income families bridge the gap between their incomes and the market rates.
Finally, Detroit must ensure that the people who most need more affordable housing options are being served by these new developments. This requires a more targeted approach to housing development, ensuring that low-income residents, seniors, veterans, and people with disabilities have access to the units being built. The city can prioritize these groups by working with community organizations that can help identify and address the housing needs of Detroiters who are most vulnerable to displacement.
Detroit has made some strides in increasing its stock of affordable housing, but much more needs to be done to truly meet the needs of its residents. To build an equitable future for the city, Detroit must focus on creating housing that is truly affordable for those who need it most, ensuring that the people who have lived in the city through its most difficult times are not left behind as the city continues to grow and change.
Both established and (re)emerging cities need housing that accommodates all its residents and potential residents. So it’s not lost on me that the city benefits from having $4,000-$8,000 penthouses as options for downtown living. But an either-or approach to development isn’t what ensures growth and prosperity. The city would be letting down its longtime residents and people who have worked hard to assist in Detroit’s comeback if it continues to disenfranchise folks by not creating equitable housing developments that are truly affordable all throughout the city beyond the downtown core.
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