Downtown Detroit Market Report

Page 1


Population

Downtown

Real

The Story Behind the Numbers

A Vibrant Hub of Culture and Commerce

Downtown Detroit continues its positive momentum as a vibrant hub for culture, commerce, and entertainment, attracting more than 6.3 million visitors in 2024 and fueling new business growth. Major investments—such as Hudson’s Detroit, Michigan Central, The Godfrey Hotel Detroit, and The Residences Water Square—signal a resurgence of activity in and around the urban core. In response to evolving work patterns that now include hybrid, remote, and traditional Monday-to-Friday schedules, the Downtown Detroit Partnership and its collaborators are actively reshaping the city’s infrastructure and amenities to support a more dynamic and flexible workforce.

Navigating Housing Affordability and Vacancy

Although thousands of new residential units indicate strong market confidence, critical housing challenges remain and high vacancy rates signal potential mismatches between new luxury-oriented developments and the affordability needs of Downtown’s primary demographic— young, single professionals. Addressing this mismatch by strategically aligning housing affordability with resident income levels is essential to attract more residents, reduce vacancies, and ensure sustainable growth.

Strengthening Livability for Sustainable Growth

Complementing these efforts, ongoing improvements to walkability, transit, and safety will continue to elevate Downtown’s livability. Together, these strategies reinforce a comprehensive vision: one where economic diversity, housing accessibility, and quality-of-life amenities are tailored to the evolving needs of Detroiters—building a Downtown that is both vibrant and resilient for all.

Downtown Activity

Visitors

Quarterly Information

In 2024, Downtown Detroit recorded 6.3 million visits, averaging 84,446 daily. A July 13 event drew a peak of 239,033 visits. Q4 visits rose 1.2% from 2023, with major events like the Thanksgiving Parade and Lions game boosting attendance. Since 2021, daily visits have grown 35%.

Visitor traffic peaks in warmer months, largely driven by Downtown parks and the more than 2,000 free programs curated by the DDP. While Q1’s lower numbers reflect seasonal impacts, late-year declines were offset by The Rink at Campus Martius Park presented by Visit Detroit, DDP’s Annual Tree Lighting presented by DTE Foundation, and other holiday events, which indicates sustained attraction to Downtown.

Total of Visitors: Notable Events

Number of Visits 2024 Per Quarter

Source: Placer.ai, compiled by Downtown Detroit Partnership.

6.3 M

Visitors (2024)

84,446

Avg.

visits (2024)

239,033

Workers

Quarterly Information

In 2024, Downtown Detroit’s daily worker counts averaged half of pre-pandemic levels, peaking mid-week (highest on Wednesdays: 42,218; lowest on Fridays: 26,824).

Population by Day and Hour

Average Daily Workers

Source: Placer.ai, compiled by Downtown Detroit Partnership.

Average Daily Workers Per Quarter

Source: Placer.ai, compiled by Downtown Detroit Partnership.

The significant reduction in daily workers compared to pre-pandemic levels can be largely attributed to ongoing remote and hybrid work trends, particularly impacting Mondays and Fridays. Mid-week peaks (Tuesday through Thursday) likely reflect hybrid return-to-office patterns. While General Motors’ relocation to the Hudson’s building may not dramatically increase total workforce numbers—many employees are shifting from the Renaissance Center—it is expected to re-center activity within the Downtown core, potentially boosting weekday foot traffic, visibility, and vibrancy in the area surrounding Campus Martius Park. 42,218

In 2024, Downtown Detroit’s population peaked weekdays from 11 a.m. to 3 p.m., declining after 8 p.m. Weekends saw activity rise around 3 p.m., peaking at 6 p.m., and then tapering after midnight.

Weekday peaks reflect office-driven activity, while weekend afternoons highlight leisure visits. These patterns underscore Downtown’s dual identity as both a weekday business hub and weekend entertainment destination.

Weekday Average

Downtown Population by Time

Source: Placer.ai, compiled by Downtown Detroit Partnership. Note: Peak is in orange.

1:00 PM

Peak weekday time

Weekend Average

Downtown Population by Time

Source: Placer.ai, compiled by Downtown Detroit Partnership. Note: Peak is in orange.

6:00 PM

Peak weekend time

Downtown Living

Asking Rent

Quarterly Information

In 2024, Downtown Detroit’s average asking rent remained stable at $2.29 per sq. ft., despite a substantial new luxury apartment inventory. Apartments within the Downtown Detroit Business Improvement Zone averaged $1,844 monthly for a one-bedroom unit (738 sq. ft.). Q4 2024 saw a notable vacancy rate of 25.1%.

Stable rental prices reflect steady overall demand. However, high vacancy rates, largely driven by recent luxury developments, could put downward pressure on prices for newer units. Given that only 34% of residents earn above $100,000 annually—the income required to comfortably afford current Downtown rents—new projects might need to strategically adjust pricing or offer incentives. Broader market adjustments remain uncertain due to Downtown’s concentration of higher-income households.

Apartments Average Rent and Size

Total

Housing Market

Annual Facts

In 2024, the average Downtown Detroit rent ($1,844/month) represented 30.5% of regional median household income. Single-person households, comprising 76% of Downtown residents, face affordability pressures – not being able to comfortably rent a one-bedroom apartment without cost burden.

Current rental prices outpace affordability thresholds for median-income residents, particularly singles. While Downtown remains attractive to highincome individuals, affordability remains a challenge for the majority of those seeking housing in the Downtown —especially single-person households. To support a more inclusive residential base, future developments can benefit from diversifying unit types and exploring pricing strategies that align more closely with Downtown’s evolving demographic profile.

Downtown Residents

Estimated Affordable Rent (Houshold Median Income)

$1,222 per month

Estimated Affordable Rent (Individual Median Income) $1,115 per month

34% of the downtown population earns more than $100,000 annually

Detroit Region Residents (MSA)

Estimated Affordable Rent (Houshold Median Income) $1,270 per month

Estimated Affordable Rent (Individual Median Income) $768 per month

Source: U.S. Census, American Community Survey, 2023 5-yr

37% of the regional population earns more than $100,000 annually

Earning over $100K annually is necessary to avoid cost burden when renting a one-bedroom and one bathroom apartment in Downtown Detroit today.

13%

Percent of income spent on transportation (Center for Neighborhood Technology, 2025)

45%

Percent of households spending more than 30% of income on rent

(ACS, compiled by Downtown Detroit Partnership)

$1,844

Monthly rent cost (CoStar Group 2025)

$22,128

Average annual rent Downtown (CoStar Group 2025)

30.5%

Ratio of regional median income to rent (ACS, compiled by Downtown Detroit Partnership)

Real Estate Development

Residential Projects

Annual Facts

Downtown Detroit has 562 residential units under construction, including major projects like The Residences @ 150 Bagley (148 units) and Henry Street Apartments (170 units), adding to 5,903 existing units.

Active development shows investor confidence, though high vacancy (25.1%) signals potential short-term occupancy challenges.

Upcoming Residential Projects

Source: Downtown Detroit Partnership. February, 2025.

5,903

Total Existing Units

562

Downtown Hotels

Quarterly Information

Downtown Detroit currently offers 5,253 hotel rooms, with 940 additional units under construction, including the 600-room JW Marriott at Water Square. There was an average occupancy of 56.7% in 2024.

Hotel development suggests growing confidence in Downtown’s tourism and convention potential. Major additions like the JW Marriott at Water Square and the Detroit EDITION at the Hudson’s site—both part of the Marriott portfolio—are expected to elevate Detroit’s appeal as a major event destination. These are joined by other upcoming properties such as the AC Hotel and The Merchants Building, signaling strong investment despite currently moderate occupancy levels.

5,253

Total Number of Hotel Rooms 940 Under Construction Rooms

Existing Hotels

• MGM Grand Detroit

• The Siren Hotel

• The Atheneum

• Hilton Garden Inn

• Courtyard by Marriott

• Element Detroit at the Metropolitan Building

• Doubletree Guest Suites, Fort Shelby

• Foundation Hotel

• Hotel Indigo Downtown Detroit

• Hotel David Whitney

• Marriott

• Greektown Casino Hotel

• Fort Pontchartrain, Wyndham

• Westin Book-Cadillac Hotel

• Shinola

• Cambria Detroit Downtown

• Roost Hotel at the Book Tower

• The Detroit Club Hotel

Source: Downtown Detroit Partnership. February, 2025.

New and Upcoming Hotels Quarterly Information

• The Merchants Building

• AC Hotel Detroit at the Bonstelle Playhouse

• Hudson’s Site - The Detroit EDITION Hotel

• JW Marriot Detroit Water Square

Economy and Business Climate

Downtown Jobs

Annual Facts

Downtown Detroit is home to 70,611 primary jobs, representing 4% of the region’s total employment within just 0.03% of its land area. This job density highlights Downtown’s critical economic role, underscoring the importance of maintaining a balanced, accessible ecosystem to support ongoing business attraction and worker retention in the area.

Total Primary Jobs

1.7M Primary Jobs

3,892.30 SQ Miles Region (Detroit MSA) Primary Jobs

4% of primary jobs in the region (Detroit MSA)

1.2 SQ Miles Downtown Detroit 0.03% Downtown

70,611

Source: U.S. Census Bureau. (2016-2021). LEHD Origin-Destination Employment Statistics. Detroit MSA: Detroit-Warren-Dearborn Metropolitan Statistical Area

New Businesses

Quarterly Information

27 New business establishments in 2024

2,169 60

Total Businesses (ESRI, 2025) Sidewalk Level Retail Businesses (DDP, 2024)

• Chaos Burger

• Charminar Biryani

• Chipotle Mexican Grill

• Dunkin Donuts

• Easy Peasy

• Fixins Soul Kitchen

• Gilly’s Clubhouse

• Kamper’s Rooftop Bar

• Mati Taverna Bar

• Noorjahan

• Nuevo Seoul

• Parlay Detroit

• Post Bar

• Presley’s Kitchen Detroit

• Rosa Cafe + Market

• Soraya

• Sugah Please Breakfast Brunch Bar

• The Lone Goat

• The Social Brews

• The Vinyl Society

• Vollmers Bar

• 3 KINGS Sports Cards and Collectibles

• Culture Detroit

• Ferosh The Label

• Rifai Detroit

• Savage x Fenty Food and Beverage Goods and Services Retail

Source: Downtown Detroit Partnership. February, 2025.

In 2024, Downtown Detroit added 27 new establishments, predominantly in dining, retail, and personal services. Annual household spending reflects strong local demand in dining ($3,450 per household), entertainment ($3,092), and apparel ($2,122).

Continued business openings align closely with Downtown resident spending habits, suggesting targeted opportunities for businesses in food, retail, and leisure services. This momentum is also supported by broader efforts to foster a business-friendly environment, including increased support for small enterprises, reduced barriers to entry, and improvements to parks and public spaces.

Annual Household Spending

2024 Consumer Spending MEALS AT RESTAURANTS $3,339 APPAREL AND SERVICES $7,192,311 Total $2,122 Average FOOD AT HOME $20,295,330 Total $5,987 Average ENTERTAINMENT/ RECREATION $10,482,635 Total $3,092 Average FOOD AWAY FROM HOME $11,698,145 Total $3,450 Average FOOD & DRINK ON TRIPS $599

Note: Consumer spending shows the amount spent on a variety of goods and services by households that reside in the

People of Downtown

6,893 4,384 1.31

3,259

20.5%

Downtown Detroit’s population increased by 20.5% between 2011 and 2023, predominantly attracting younger residents (ages 20-34) and single-person households (76%). Most residents are male (63%), and while the median household income ($69,813) slightly trails the regional average ($72,574), per capita incomes are higher due to fewer family households. Notably, population primarily consists of Black/ African American (44%) and White (39%) residents, indicating a significant presence of both groups.

Household Income (2023)

Annual Facts

Downtown’s growing racial and demographic diversity creates new opportunities for businesses to offer more inclusive cultural experiences, products, and services. As the area continues attracting younger, career-driven residents, aligning amenities and housing options with their needs will be key to sustaining economic momentum and long-term resilience. $63,716

$69,813

Source: U.S. Census, American Community Survey, 2023 5-yr Avg.

Livability

Quality of Life

Annual Facts

Downtown Detroit features high-quality urban living, with strong walkability (Walk Score: 76 out of 100), extensive green spaces (37 acres), and award-winning public amenities such as Campus Martius Park, voted #1 Public Square by USA Today’s 10Best for three years in a row. The park’s central location provides convenient access to workplaces, transit, and entertainment options, serving 70,611 workers and 6,668 residents—a worker-to-resident ratio of 10.6.

The availability of attractive public spaces, walkability, and convenient transit enhances Downtown’s residential appeal and contributes to the local economic vibrancy. Maintaining this balanced mix of urban amenities, workplaces, and entertainment options is crucial for continued growth, ensuring Downtown remains attractive for both living and working.

Tons of Garbage Collected

Source: Downtown Detroit Partnership. February, 2025.

76/100

Downtown Detroit Walk Score

37

Acres of Parkland

Balance of Uses

In the BIZ – funded by the BIZ assessment

Total Trash (BIZ) in tons

Graffiti removed (BIZ)

Patron Assists (BIZ)

70,611 Workers

Hours Worked (BIZ)-- More than 90% by Detroiters

Scooter Removal from Walkway (BIZ)

Dog Park (# of times cleaned)

Total Trash (Contracts/Events) in tons

6,668 Residents

Graffiti removed (Contracts)

Patron Assists (Contracts)

Total Hours Worked (Events)

TOTAL (BIZ + Contracts + Events)

Scooter Removal (Contracts)

10.6 Ratio

Safety

Annual Facts

Downtown safety perceptions are positive; 82% of Detroiters feel safe. Property crime declined 9% in 2024, though violent crimes rose slightly (3%). Additionally, 90% consider Downtown welcoming and family-friendly.

Positive safety trends enhance Downtown’s attractiveness, but ongoing attention to violent crime is important. High safety perceptions reinforce investor and resident confidence, supporting long-term community stability.

Scan to learn more about safety initiatives

DowntownDetroit.org/Safety

82% Detroiters

Agree Downtown Detroit is a safe place to visit.

87% Detroiters

Agree Downtown Detroit is welcoming to all racial and ethnic groups.

90% Detroiters

Agree Downtown Detroit is family friendly.

Source: Downtown Detroit Partnership. Downtown Perceptions Survey, 2024.

Number of Crimes

Source: City of Detroit, compiled by Downtown Detroit Partnership.

DowntownDetroit.org/Datascape

PRODUCED AND DESIGNED BY

Downtown Detroit Partnership

Downtown Detroit

Business Improvement Zone

PHOTOGRAPHY PROVIDED BY

Steve Koss

Jason Willis

Nadir Ali

Metrics on Downtown Detroit Perceptions Sur vey

Stakeholder Insights

Repor ts Library

Downtown Detroit Partnership

3D Interactive Map

Downtown Development Update

DATA SOURCES

CoStar Group

City of Detroit

Downtown Detroit Partnership

Placer.ai

U.S. Census Bureau

Connecting People, Places, and Parks

DOWNTOWNDETROIT.ORG

1000 WOODWARD AVE SUITE 380

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