This is the story of a family looking for a townhome in Detroit. Their budget was around $400,000. They expected to find affordable options based on the city's overall median prices. However, the reality was different. Townhomes in areas like downtown, midtown, and Corktown, which are close to jobs, had much higher prices.

Looking at the numbers makes it clear. According to Redfin, the overall median sale price in Detroit as of June 2026 is $99,946, which is 1.0% lower than the previous year. The average price for single-family homes is around $98,000. In contrast, according to Homes.com, the median price for townhomes is $412,500, which is more than four times the city's overall median. The average time to contract was 48 days, longer than the previous year's 44 days. There were 1,409 transactions in June, down from 1,673 the previous year.

The reason for this gap is simple. Most townhome listings are concentrated in areas like downtown and midtown, where redevelopment is active. In contrast, single-family homes are spread throughout the city, with many being older and undervalued. The average price for condos is about $127,500, falling somewhere between single-family homes and townhomes. It's rare to see such a significant price difference within the same city. Therefore, in Detroit, it's important to check the actual transaction prices in the areas of interest rather than relying solely on the city's overall average.

Ultimately, that family chose a single-family home slightly farther from the city center instead of a townhome. They were able to get an extra room within their budget. However, their commute became longer. If they wanted to be close to work, they would have to choose a townhome or condo; if they prioritized space and budget, a single-family home in the suburbs would be the way to go. In Detroit, this choice is distinctly clear.

The structure of maintenance fees should also be considered differently. Townhomes in redevelopment areas usually have an HOA that manages the exterior and common areas. The fees are generally lower than those for condos. In contrast, single-family homes in the suburbs often do not have an HOA. While the fixed monthly costs are lighter, it's better to set aside funds for repairs, given that many homes are older. Having a thorough inspection before purchase can be helpful in practice.

The condo market is also worth examining. The average price of condos in Detroit is $127,500, which is higher than single-family homes but lower than townhomes. There is a wide range from high-rise condos in downtown to low-rise condos closer to the suburbs. City workers tend to prefer high-rise condos, while families looking to reduce maintenance burdens after retirement often seek low-rise condos. In either case, it's advisable to check the financial status and reserve levels of the management association in advance. Since the pace of redevelopment in Detroit varies significantly by area after the city's financial recovery, there can be substantial differences in prices and vacancy rates even within the same city block. Therefore, checking recent transaction examples in the vicinity can be beneficial in practice.

School districts should also be considered. The school districts in Detroit vary greatly in GreatSchools ratings. Many Korean families also compare with nearby suburban areas like Rochester Hills or Birmingham. School district boundaries change frequently, so it's advisable to verify the assigned school for the specific address before purchasing.

For investors looking for rental income, townhomes in redevelopment areas offer significant potential for price appreciation, but the entry costs are also high. Conversely, some investors adopt a strategy of purchasing undervalued single-family homes in the suburbs to rent out. In this case, while the purchase price is low, the risks of vacancy or repair costs are relatively high. Both strategies have distinct advantages and disadvantages, so it's wise to first determine the level of risk you can handle. There are no guarantees that prices will always rise. For families moving from out of state, it's also important to check the property tax and insurance structures in Michigan, as they may differ from their previous residence. This article does not constitute investment or legal advice, and consulting with a professional before making any contracts is recommended.