If you reside in the City of Warren then you have probably heard talks about the new downtown area. With new developments, there is a real possibility of construction starting in the near future. One aspect of this is how it will affect the values of nearby homes. Here we look at how exactly development affect housing prices.
Where do we stand with this development project?
As of last city council meeting, Mayor Jim Fouts did a presentation to city council proposing the new development. Attendees included: Jim Fouts, Warren Director of Community Economic and Downtown Development (DDC) Tom Bommarito, Joe Perez of Plante Moran. A downtown development is a part of the City of Warren Master plan that was approved earlier this year.
The downtown area is proposed to be built on Van Dyke, north of 12 Mile. Buildings include the 20-25 retail outlet shops, a Marriott Hotel, Ascension St John medical facility, upscale apartments, and condominium buildings. The price tag for the development is 140 Million by developers and 30 Million in bonds. The Michigan Economic Development Corporation would contribute to the 30 Million.
According to Fouts, this development should be ‘Tax Neutral’ For the taxpayers of Warren Michigan. Currently the development has had some opposition from city council, but the plan is still in discussion.
How will this affect housing prices….
Your biggest investment: Your home. It is important to know how development would affect that house price. Also, looking at investing into Warren? Have rental properties, businesses, or any other type of investment? Here we breakdown how downtown developments affect the area.
Warren Zoning regulation:
Zoning laws can dictate a supply and demand situation with the Warren housing market. Zoning regulations outline what land is utilized for commercial, residential, and industrial reasons. If the City of Warren rezones an area for business, that could limit the supply for residential housing, resulting in a increase in home values when supply is limited. Not to mention that if businesses bring more people to the city, the demand for housing will increase.
Access to Warren’s Civic Center:
According to the American Public Transportation Association, average home values are 42% higher for residential and commercial located within a half mile of a city center. And according to a study by The University of Chicago, if your home is located within a half mile of a Walmart, your property value can increase anywhere from 1-2%.
If activity increases near the area of 12 Mile and Van Dyke then that would likely result in the increase of public transportation including bus routes. This means residents that live near the area could see an increase in home value.
Commercial properties affect Warren home prices
Research had shown that home located near commercial properties can increase home value. However, this is based on a myriad of factors like, the number of customers frequenting the business, the demand for that business, and how large the property is.
Commercial properties can provide a sort of revitalization for the city. Therefore, attracting a desirable atmosphere where residents would be willing to pay higher prices. This could be what happens to Warren if the downtown proves to be desirable. According to Realtor.com, Royal Oak and Birmingham MI, who have a polished downtown area, have a median price per square foot of $330. North Warren has an average price per square foot of $157 and $116 for South Warren. These factors were as of June 2021.
Warren transit affects home values
Transit to the City of Warren could be a great thing and at the same time negatively impact the price of homes. A noisy and busy roadway can negatively affect the desirability of the local neighborhoods. Increased traffic could show a decline in safety for families moving the Warren for the relaxed atmosphere. Work day commutes can suffer when the amount of traffic slows your travel time. The big question is the ability for Van Dyke and 12 Mile to handle the downtown area’s traffic.
Everything listed above barely scratches the surface of the amount of impacts this large development has on the residents of Warren and Metro Detroit. Can you think of anything else I missed? Send me a message. And if you need to sell your home anywhere in Michigan with an all cash offer, then let me know! We buy houses in Warren and all over Michigan regardless of condition or timeframe.