DETROIT - New property owners in Detroit might have made the right move by grabbing up land while it's still cheap.
The city took the No. 1 spot in a new ranking of undervalued housing markets published by Forbes.
The ranking lists the city as 11.7 percent undervalued.
The position means housing prices in Detroit are currently low, relative to their potential value, and if the city continues to make a strong financial comeback, the rebound could pay huge dividends for homeowners.
Forbes used data from the CoreLogic Case-Shiller Home Price Index, National Association of REALTORS, IHS Global Insights, and the U.S. Bureau of Labor Statistics.
All of the data was provided to Forbes by Fitch Ratings.
Their ranking includes five metrics, based on national averages:
- Nominal income growth
- Population growth
- Unemployment
- Change in rental prices
- Change in home prices
The home price index database shows Detroit made gains of 6.25 percent in the first quarter of 2016-17, but still ranks as the lowest in the country.
According to the list:
- Detroit's median housing price is $225,200. (
- Nominal Income: 4.78% year-over-year change
- Population: 0.01% year-over-year change
- Rents: 0.88% year-over-year change
- Unemployment: 6.27% year-over-year change
- Home Prices: 6.52% year-over-year change
Trailing behind on the list were New York City, Philadelphia, Chicago and Cincinnati.
Full list here.