From the perspective of someone who has observed the real estate in this area for decades, few cities have experienced the dramatic ups and downs that Detroit has. The sight of a city that faced bankruptcy and population decline now attracting people back to its downtown area is an impressive change, even for those who have watched it for a long time.

The population of Detroit saw a significant decline until the early 2010s, but in recent years, the rate of decrease has noticeably slowed, with some years even reporting a slight increase according to census.gov estimates. The re-influx into the downtown and midtown areas is believed to be driving this trend.

While the industrial base remains centered around the automotive sector, it is shifting direction. GM, Ford, and Stellantis are all making large investments in electric vehicle production and battery plants, leading to an increase in jobs for related suppliers. Additionally, the redevelopment projects in downtown are gradually attracting IT and startups.

The unemployment rate in Michigan is around 4%, and the Detroit metropolitan area is nearing the national average. Compared to the past when double-digit unemployment rates were recorded, this is a significant improvement. Income growth rates are showing a steady but gradual upward trend.

Infrastructure investments include the redevelopment of the downtown sports and entertainment district, the construction of electric vehicle-related supply chain facilities, and improvements to the border trade routes between Detroit and Windsor. These investments are expected to help restore logistics and manufacturing competitiveness.

According to evaluations from organizations like the Milken Institute and Moody's, many see Detroit as being on the rebound after hitting rock bottom, but there are cautious forecasts that the pace of electric vehicle transition and changes in global automotive demand could affect growth rates. In other words, recovery is ongoing, but it is not yet complete.

From my long-term observation of this market, here is some advice I would like to offer to Korean households:

• The areas near downtown and midtown are in the early stages of redevelopment, presenting opportunities to enter at relatively low prices.
• It is safer to approach suburban areas related to automotive manufacturing while monitoring employment stability.
• If you plan to hold long-term, it may be worth looking for capital gain opportunities unique to a recovering city.

Detroit is still a city in recovery. However, the unique opportunities of a city that is building from the ground up may be available to investors who approach them with patience.