Mortgage demand by Black Detroiters soars, yet flight to suburbs continues

In a remarkable development for metro Detroit’s housing market, the demand for mortgages by Black homebuyers has increased 188% across the city and region over the past decade, according to a new study.

Between 2012 and 2021, the demand for mortgages among Black residents increased 443% for homes in Detroit and 159% for houses in the suburbs.

According to the analysis by Detroit Future City, a think tank that develops strategies for a more equitable city, significant concerns remain about Black residents continuing to leave Detroit. Since 2000, Detroit has lost about 295,000 Black residents, more than any other American city.

And despite the increase in demand for homes in Detroit, only one in five mortgage applications by Black homebuyers were made within the city. The largest increase in the suburbs came in the neighboring cities of Eastpointe and Warren and the outer-ring areas of Clinton Township and Romulus.

“Even though there has been a substantial increase in demand for homeownership in Detroit, this demand remains modest, especially relative to the size of the city,” the study states. “There is continued work needed to create desirable housing options for residents at all stages of life and price points.”

In Detroit, the neighborhoods with the biggest increase in demand for mortgages were East English Village, Grandmont Rosedale, and Bagley.

The analysis found that Detroit is the most popular city in the region for Black homebuyers to seek a mortgage, overtaking Southfield in 2017. The demand for mortgages spanned income levels, with the largest increase coming from Black residents who make less than $50,000 a year.

In Detroit, applications from middle- and upper-class Black homebuyers increased by 382%, while the rate surged 477% for those making less than $50,000 a year.

What’s not clear from the study is the percentage of mortgages that were approved. A previous study by Detroit Future City found that Black Detroiters, regardless of their income level, were twice as likely to be denied a mortgage as white applicants.

“Last fall, DFC announced an ambitious eight-year plan to increase the city’s Black middle class and other communities of color,” Anika Goss, president and CEO of Detroit Future City, said. “We have clearly gained some ground in the last decade, but even with the increase in middle class borrowers, disparities in mortgage originations continue to persist. African Americans make up 77% of the Detroit’s population and are denied home purchase loans at two times the rate as white applicants. It’s not until we solve for this issue, that we can equitably rebuild the homeownership in the city.”

Detroit Future City encouraged the city to invest in areas where the demand for mortgages is increasing to strengthen the city’s neighborhoods.

“These investments could include implementing strategies that support comprehensive community development efforts, improving housing stock, increasing neighborhood amenities, and marketing neighborhoods to future homeowners,” the study states.


In the past two decades, Detroit has lost 37.4% of its African American population.

While Detroit’s white population declined by 44,300 between 2000 and 2010, it has since grown by more than 5,100. Its Hispanic and Asian populations have also grown.

Black people now account for 77.2% of the city’s overall population, compared to 82.2% in 2010, when Detroit had the highest percentage of Black residents in the country.

Gary, Indiana, and Jackson, Mississippi, now have larger shares of Black residents.

“Creating strong middle-class neighborhoods that can both retain existing residents and attract new ones is critical for putting Detroit on the path to returning to its status as a middle-class city,” the study concludes.

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