I like to invest in real estate. Buy and hold and fix and flip. I have been thinking about buying a summer home in MI to work on. Then I see this report from Rent.com claiming that Traverse City-Cadillac, Michigan has seen a (-43.32%) decline in renters. Why would that be? Isn’t this area highly desirable?
Any insights from the locals on this?
https://www.rent.com/research/migration-nation/
I can ask my brother, career LO if he has any realtor contacts there that can explain that.
TC is very hot, was named The Most desirable place to retire by some magazine…adding Cadillac mixes 2 different markets, so there may be some bad signal there.
Cadillac is seeing a lot of low wage job growth (one of my clients is a temp firm there) and TC is super seasonal from a tourist standpoint, so there are a lot of variables there.
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That would be great. Thank you.
That’s what I thought too and why I was surprised to see that.
O.K. that may be the reason and makes sense.
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Isn’t the housing market as a whole in a bit of a down turn? Higher interest rates. Falling values in many areas. Couple that with the economic downturn and you may have less spending on vacation homes/vacations in general.
Waiting until the bottom hits and then paying cash may be the best way to make a tidy profit if that is an option.
That’s what I am trying to hit. I am thinking of either 2023 or 2024 to purchase a home in MI, but, I am getting old and I hate not staying busy. I only have so much time left. I think MI will be highly desirable in the future. I want to buy fairly soon so as to help my kids.
Yes, but if you read that rent.com report, the TC/Cadilac area was #2 behind Chicago in renter outflows. Seemed odd to be rated at #2.
I’m 25 miles west of Cadillac, do most of my business there. I have a friend that has three rentals in Cadillac, she hasn’t ever had any difficulty keeping her units occupied. In fact, she says there is actually a shortage of affordable rental properties in and around the Cadillac area.
Traverse City and Cadillac aren’t even on the same playing field as it pertains to real estate. Price being one the biggest differences. The average home price in Cadillac is 150k, while the average home price in the TC area is 2-3+ times that, especially, west of town all the way to Lake Michigan and north up into the Leelenau peninsula.
Even though real estate prices have moderated somewhat over the last little while, they are still ridiculously high in my estimation.
As an example, I sold a Ten acre piece of unimproved land late in 2019 for the going average price of 26k. In 2021, similar parcels were selling for 50-75k! Unimproved. I still see parcels that size selling for 50-60k. While I don’t expect pricing to return to 2019 levels, at present, property in this area is still over priced by at least 30%, imo.
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I think a lot of what you’re competing with too is investment Banks Etc buying up a lot of properties to turn around into rentals
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Not in Canada no more.
Foreigners, hedge funds etc all just got stiff armed buying residential properties in city areas for 3 years.
Barn door closes 4 yeara after thr horse got out, but hey, nice work.
Thanks so much for all of that info. I’m thinking that rent.com article is rubbish.
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