November 6, 2025 - Sonic Loans

Allen Park vs. Garden City: Where to Invest in 2025

When you’re looking to invest in residential real estate in Michigan’s Metro Detroit region in 2025, two suburbs stand out for comparison: Allen Park and Garden City. Both are situated in Wayne County, offer relatively affordable entry price points, and sit within commuting distance of Detroit. However, there are important differences in market dynamics, appreciation potential, and risk that need to be factored in. Here’s a deep dive to help you decide which might be the better investment in 2025.

Market Snapshot

Allen Park

According to Zillow, the typical home value in Allen Park is approximately $208,469, up ~4.5% over the prior year. Zillow
According to Redfin, the median sale price for September 2025 was ~$247,500, representing a year-over-year increase of ~14.1%. Redfin
A listing overview showed a median list price of approximately $234,900, up 6.8% year-over-year. Realtor
The zip code 48101 (Allen Park) shows a median sale price of ~$232,000, up ~6.7% year-over-year. Redfin
Market data from Movoto indicated that homes sold for a median of approximately $224,450 in October 2025, with an average of around 29 days on market (up from 20 days last year) — hinting at a slight cooling. Movoto Real Estate

Garden City

Zillow lists the average home value in Garden City at ~$202,632, up ~2.7% over the past year. Zillow
Redfin reports a median sale price of ~$230,000 for September 2025, up ~14.4% year-over-year. Redfin
Listings in August 2025 had a median list price of ~$229,000, up ~9.3% year-over-year. Realtor
For zip code 48135 (Garden City area), the median sale price is ~$221,000, up ~5.2% year-over-year. Redfin

Regional context

In the broader Southeast Michigan market, home prices are projected to rise by about 3-5% in 2025, with mortgage rates expected to stabilize in the 5.5-6.5% range. The Perna Team+1

Strengths & Opportunities

Allen Park

The relatively rapid median-sale price jump (14.1% YoY in one data set) suggests strong demand.
Its median price point (~$230–250K) offers a moderate entry cost compared with higher‐end suburbs.
Having some volatility in days on market suggests liquidity: properties still sell, but the market may be shifting toward more balanced conditions.
Infrastructure and amenities: For example, the large retail center Fairlane Green in Allen Park (with major retailers) is a draw. Wikipedia

Garden City

A slightly lower average home value (around $200K) provides a more affordable entry point for investors.
The ~14.4% year-over-year increase shows strong price momentum in one measure.
Short average days to pending for some home types (e.g., ~8 days in one Zillow report) indicate brisk market activity. Zillow
For investors seeking rental potential, affordability may improve cash-flow possibilities.

Risks & Considerations

Allen Park

The strong price increases mean the upside for appreciation may be more limited going forward — partly reflected in slower appreciation rates (e.g., Zillow 4.5% YoY).
Days on market increasing (from 20 to 29 in one data set) suggest market softening, which may mean longer hold periods or price concessions.
Because the entry cost is higher than in Garden City, cash-flow margins may be tighter for rental investors.

Garden City

Though one metric shows ~14.4% YoY growth, other data (Zillow at +2.7%) show modest appreciation, which raises questions about consistency.
A lower price point often means older housing stock, potentially leading to higher maintenance / capital expenditure (capex) risk.
Rental income levels may be lower, so if your strategy is buy-and-hold rental, ensure the yield makes sense.

Which is the Better Investment for 2025?

It depends on your strategy. Let’s compare based on investor profile:

Scenario A: Appreciation focus – If your goal is to buy, hold for 5-10 years, and bank on appreciation:

Allen Park may offer stronger potential, given the already demonstrated demand and higher median sale price. The liquidity and buyer interest seem robust.
But because it’s further along, the margin for surprise upside might be smaller.

Scenario B: Entry & rental yield – If your goal is lower entry cost, decent rental cash flow, and less risk:

Garden City might be more appealing — lower price point, still demonstrating upward momentum.
However, you’ll want to carefully manage capex, rental income, and tenancy risk.

Additional Factors to Weigh

Affordability & interest rates: With mortgage rates still elevated and regional market appreciation moderating, buying at the right price is critical. Regional forecasts suggest only 3-5% gains in 2025.
Rental demand & investor competition: Michigan continues to draw investors thanks to affordability, but competition is increasing. Axios
Neighborhood specifics: Within each city, some neighborhoods outperform others. For Allen Park, for instance, Snow Woods has a median ZHVI of approximately $236,868, and Duvall-Edison has a median ZHVI of roughly $245,019. Zillow
Maintenance and property age: Older homes often require more upkeep; check the condition, property taxes, and local regulations.
Exit strategy and hold period: Especially in an environment of slowing growth, planning for five to ten years may make more sense than short-term flips.

Final Thoughts

If I had to pick a “winner” for 2025 investment among the two, I’d lean toward Allen Park — if you’re comfortable with a somewhat higher purchase price and are focused on appreciation in a busy market. On the other hand, if you require a lower-cost entry and are focusing on rental yield or risk mitigation, Garden City offers a solid alternative, making it a smarter choice for your strategy.

However, remember that individual property matters far more than the city. Condition, price per square foot, neighborhood microtrends, and cash-flow metrics will determine ultimate success.

Thank you for reading! If you enjoyed this article and want to explore more content on similar topics, check out our other blogs at Sonic Loans, Sonic Realty, and Sonic Title. We have a wealth of information designed to help you navigate the world of real estate and finance. Happy reading!

Are you looking for the right loan? Check out Sonic Loans for tailored mortgage solutions that make home financing simple and efficient.