Key Takeaways
- Gross domestic product (GDP) in the Detroit Region has reached a peak in 2022 from the past five years, outpacing national growth rates.
- Employment, educational attainment, and income are trending in a positive direction.
- Leaks persist in the Region’s talent pipeline, with enrollment and degree completion down.
- The Detroit Region consistently ranks as one of the most affordable locations, based on cost of living and rental rates—40% lower than the coasts.
- The Region’s infrastructure is improving with increased road quality and public transit ridership.
- Despite serving as one of the country’s most diverse regions, the equity gaps persist in homeownership rate, income, insurance, and other indicators.
Designed to measure economic and social progress, the Detroit Regional Dashboard shows that economic momentum continues but that equity gaps continue to persist. Seventy-five percent of the 39 regional indicators in the dashboard are stable or trending in a positive direction, reflecting improvements in economic growth, business climate, and infrastructure. Conversely, education and homeownership trends reflect areas that need attention and improvement.
The dashboard is published jointly by the Detroit Regional Partnership and Detroit Regional Chamber to align stakeholders around critical indicators that measure economic and social progress and provide data that informs business, community, and policy recommendations. It is intended to serve as a catalyst for strategic change that ensures the 11-county Detroit Region moves forward as a thriving and equitable community.
KEY METRICS AND ECONOMIC GROWTH
Economic Growth Continues with Strong GDP and Record-Low Unemployment Despite Lagging Population
One of the nation’s most populous regions and largest economies, the Detroit Region has shown resiliency over the past few years, including record–low unemployment and increased employment along with growth in household income. Despite the overall strong economic performance, the Region’s population growth has been relatively stagnant, lagging the national rate.
- One of the largest economies is the Detroit Region, which is growing. Its gross domestic product, $322.6 billion, has outpaced national growth rates in the past five years.
- Median household income in the Detroit Metro grew by 6.1% year-over-year to $71,265 but remains below the national average of $74,755 in 2022.
- The Region’s annual unemployment rate reached a 20-year record low at 3.7%, nearly matching the national rate in 2023.
- There were 5.4 million residents in the Detroit Region in 2023, which had a growth rate (0.3%) that lags the national rate (1.9%) in the past five years.
EQUITY
Equity Gaps Remain in One of Country’s Most Diverse Regions
While homeownership, median household income, labor participation rate, and access to the internet equity measures continue to improve, gaps among racial and ethnic groups continue to exist in the Region. In the Detroit Region, the largest racial and ethnic groups are white (67%), Black or African American (19%), and Asian and Hispanic or Latino, accounting for 5% each. Comparatively, the Detroit Region has a larger Black or African American population than the nation (12%).
- Income has increased for all races and ethnic groups in the Detroit Region, but the median household income gap between the two largest populations remains significant at more than $37,300 difference between white and Black or African American households in 2022.
- Black or African American households in the Detroit Metro have the lowest homeownership rate at 46.5%, almost 19 percentage points lower than the national average in 2022.
- Metro Detroit had a lower uninsured population rate than the national rate by 3.3 p.p., along with lower rates for Black or African American (3.7 percentage points lower) and Hispanic or Latino populations (4.7 percentage points lower) in 2022.
- In 2022, the majority of commuters (83.2%) reported driving alone with a commute time of 25 minutes, but Black or African American commuters utilized public transportation three times more, which had nearly a double commute time.
BUSINESS CLIMATE
Industrial Real Estate, Trade, and Venture Capital Markets Remain Hot, While Foreign Investment Remains Down
The Region and Michigan consistently rank among the top business climates in the nation. Industrial real estate, trade exports, venture capital, and new business applications have experienced notable growth. However, overall investments into the Region are down, with a drop in foreign-based companies, while domestic investment is on the rise.
- Domestic companies invested $4.4 billion in the Region compared to international companies at $4.6 billion in the past five years. The top countries were the U.K. ($2B), Canada ($634M), Germany ($580M), and Japan ($158M).
- The Detroit MSA ranked as one of the largest national export markets (#10), with exported goods valued at more than $43.6 billion in 2022, which notably increased by 14.7% in one year.
- The vacancy rates for office and industrial real estate remain steady in the Detroit Region but lower than national rates, especially for the industrial market, which has been operating at near capacity for almost a decade.
TALENT
Employment, Education Attainment, Wages Trending in Right Direction
The Detroit Region has one of the largest talent hubs in the nation, which is supported by innovative talent pipeline programs. Employment growth, education attainment (associate’s or higher), and occupation wages all have increased in the Detroit Region.
- The Detroit Region has a workforce of 2.6 million in 2023, which has increased an average of 3.0% year-over-year in the past five years.
- Occupational wages increased significantly, by 16.0%, over the past five years in the Detroit Region.
- The highest-paying occupations in 2023 were in management, legal, and computer and information technology.
- The percentage of residents 25 and older with an associate degree or higher has grown by 2.6 percentage points since 2018. The Region’s educational attainment rate of 43.6% is near the national rate of 44.5%.
EDUCATION
Leaks in Talent Pipeline Continue to Persist
The need for a highly skilled workforce in the future is a top priority for the Region, but key indicators, including enrollment and degree completions, are trending in the wrong direction.
- The share of students enrolled in postsecondary education in the Region within six months after high school graduation decreased a concerning 9.2 percentage points in the past five years to 55.8% in 2022.
- There were more than 35,000 bachelor’s or higher degree completions from public universities in the Detroit Region, which ranks one of the top locations in the nation for total completions (#13) in 2023 but has declined in the past year.
COMMUNITY
Cost of Living, Steady Home Values Make the Region One of the Most Affordable Metros
Positive gains have been made over the past several years in median home values and homeownership in the Detroit Region, all of which play an essential role in supporting strong communities.
- Detroit is one of the most affordable U.S. metros, with the cost-of-living index (COLI) ranking the fourth lowest among major metros (4 million population or more) in 2023.
- The median rent in the Detroit MSA ranks has one of the most affordable out of the most populous U.S. metros in 2023, with rents 42% lower than San Francisco, 40% lower than New York, and 40% lower than Boston MSAs.
- The median home value in the Detroit Region increased significantly at 42.9% over the past five years but remains affordable, with prices nearly $59,000 lower than the national average in 2022.
INFRASTRUCTURE
Road Conditions Improving, Airline Passenger and Public Transit Ridership Recovering Gradually
Overall, the infrastructure in the Detroit Region has seen improvement, with an increase in the quality of road conditions. There have been notable gains in airport passenger traffic and public transit ridership since the pandemic.
- 69.7% of lane miles of roads assessed in the Detroit Region were considered in good or fair condition, an increase of 12.7 percentage points in the past five years, with a notable decrease in roads in poor condition.
- Annual passengers at the Detroit Metro Airport (DTW) have increased notably in one year to 28.6 million passengers in 2023 but are still lower than the pre-pandemic peak in 2019 by 14.4%.
- Public transit ridership has recovered to 57% of pre-pandemic levels in 2023, increasing 16.7% from 2022.
