Why International Real Estate Investors Are Buying in Detroit Instead of Miami

In recent years, a quiet but powerful shift has been taking place in the U.S. real estate investment landscape. For decades, cities like Miami, New York, and Los Angeles have dominated international attention, luring overseas investors with their sun, skyline, and status. But now, a new contender is rising—Detroit, Michigan. And it’s not just investors taking notice—real estate agents, brokers, and consultants across the country are seeing increased demand from foreign buyers asking about Detroit. Many international real estate investors are choosing Detroit over Miami. Here’s why.

1. Affordability in Detroit That Can’t Be Ignored

The most obvious reason? Price point.

Miami real estate is notoriously expensive. According to Zillow, the median home price in Miami now sits well above $550,000, with luxury condos and waterfront properties climbing into the millions. For international investors looking to diversify or get strong rental returns, those high prices can limit options and inflate risk.

Compare that to Detroit, where the average home price remains around $100,000 to $120,000 depending on the neighborhood. Even in Detroit’s most sought-after areas—like University District, Sherwood Forest, or Boston-Edison—investors can find large, architecturally distinct properties for a fraction of what they’d pay in Miami.

Lower entry costs mean higher potential for cash flow, especially for rental properties, short-term rentals, or fix-and-flip projects. For global investors, that’s a compelling reason to shift their strategy.

According to Axious Detroit, The share of Michigan houses purchased by institutional investors held steady over the last year, despite cooling housing market.

2. Stronger ROI and Rental Demand in Detroit

Detroit offers some of the highest rental returns in the country, especially in neighborhoods close to major employment hubs, universities, or upcoming developments.

Where Miami's cap rates have compressed due to surging prices, Detroit's remain solid. Investors can often find properties that generate 8% to 12% returns annually, particularly in areas where housing demand is outpacing supply.

Add to that the city’s growing renter population, including young professionals, medical staff, and college students, and the result is a strong and stable demand for both short- and long-term rentals.

3. Detroit is A City in the Middle of a Comeback

Detroit’s story is no secret: once known for automotive innovation, it later became a symbol of economic struggle. But in recent years, Detroit has reinvented itself—and savvy investors around the globe are paying attention.

From the revitalization of downtown to new developments like the Hudson’s skyscraper (soon to be the tallest building in the city) and the relocation of General Motors' global headquarters, Detroit is making bold moves to reshape its future.

The Riverfront development, small business growth, and significant tech investments are all helping to transform the city into a modern urban destination. And for investors, that transformation often means one thing: appreciation.

@catinathebroker Rosedale Park Neighborhood in Detroit #detroithouses #rosedalepark #detroitneighborhoods #beautifuldetroit #detroitrealestate #detroitrealtor #detroitrealestateagent #metrodetroitrealestate #realestatebroker ♬ Ice Me Out - Kash Doll

4. Tax Incentives and Business-Friendly Policies

Michigan, and particularly Detroit, has implemented tax breaks, grants, and incentive programs to attract both domestic and international investors. The Neighborhood Enterprise Zone (NEZ) tax reductions, Opportunity Zones, and incentives for historic renovations are making it easier—and more profitable—for out-of-country buyers to acquire and hold real estate in Detroit.

In contrast, Miami and other high-demand cities in Florida have seen tighter regulations, higher insurance costs (especially due to hurricanes), and increasing property taxes—factors that reduce long-term profitability.

5. Diversification Away From Overheated Markets

For many global investors, Miami is already saturated. Prices have climbed steeply, inventory is tight, and rental competition is fierce. That means lower margins and higher risk—especially in times of economic uncertainty or inflation. 

Detroit, on the other hand, offers a way to diversify geographically while staying within the U.S. market. Investors from Canada, the UK, Germany, and even Dubai are finding opportunities in the Midwest that they can’t access on the coasts.

With less volatility, strong cash flow, and upside potential, Detroit provides a smart hedge in any investor’s U.S. portfolio.

6. A Local Market with Global Appeal

Many international investors are surprised to find that Detroit’s real estate market is incredibly active—and more connected globally than expected. There are agents, brokers, and turnkey property managers who specialize in serving international clients, helping them with everything from acquisition and rehab to property management and rent collection. Additionally, local consultants make it easier than ever to invest in Detroit from abroad. That ease of doing business is essential for overseas buyers who want simplicity and transparency.

Conclusion: Miami May Be Glamorous, But Detroit Is Smart

While Miami still offers glitz and sunshine, international investors are increasingly looking beyond the hype—and discovering real value in places like Detroit. With affordable pricing, strong ROI, business-friendly policies, and undeniable momentum, Detroit is proving that the best opportunities aren’t always where the beaches are—they’re where the numbers make sense.

If you're an investor looking to make your next move in the U.S., don’t overlook Detroit. You just might find that Detroit, the Motor City is the most underrated gem in the American real estate market.

📌 Want help finding your first—or next—Detroit investment property?
Book a call with Catina Willis, Broker & Investor Consultant → HERE

Read articles similar to Why International Investors are Buying in Detroit Instead of Miami

1. Best Detroit Neighborhoods to Invest 2025
2. Detroit Investment Properties UNDER 50k
3. Detroit House under $60K Tour Inside
4. Sell House Fast for Cash
5. Budget Friendly Home Upgrades
6. How to Buy a House on Land Contract
7. Why a Living Trust is better than a Will Video

Thanks again! Don't hesitate to share or repost this article.