HOUSING FINANCE POLICY CENTER
Detroit Housing Tracker
Q4 2015
Bing Bai, Laurie Goodman, Karan Kaul, Maia Woluchem, and Alyssa Webb
1
About the Detroit Housing Tracker
The Detroit housing market faces numerous challenges as the city charts a path toward less
blight, increased housing preservation, and a better functioning residential mortgage market.
Drawing from a wide range of data and sources, the Detroit Housing Tracker monitors the
latest development in the Detroit housing and community development arena. Updated
quarterly, this publication has two sections. Detroit Housing Market Trends presents
comprehensive market indicators including sales prices and volumes, rental prices, household
equity level, delinquencies and foreclosures, and general labor market conditions. Detroit
News tracks housing and business news and key mortgage programs.
We welcome feedback on how to make the Detroit Housing Tracker more useful. Please
e-mail any comments or questions to ataglance@urban.org.
Inside This Issue
•
•
•
•
•
•
•
•
•
Sale prices across the city continued to grow in Q3 2015, led by the Woodward Corridor
and East Riverfront areas (page 5)
As both the number and share of loans underwater continued to decline, the average
household equity for all Detroit loans reached 29 percent in Q3 2015 (page 6)
The shares of loans in serious delinquency, foreclosure, or REO in Detroit are on pace to
fall below pre-crisis levels (pages 7 and 8)
About 8,570 single-family homes were sold in Detroit in the first three quarters of 2015,
down 22 percent from the same period a year ago (page 9)
The steadily slow growth of rent continues with median rent at around $759 a month in
September 2015 (page 9)
Unemployment had a slight uptick after months of decline in two counties, and labor force
size remained constant (page 10)
Despite slow growth since 2009, Detroit still lagged behind in mortgage market recovery
with only 490 purchase mortgages and 21 home improvement loans made in 2014
(page 11)
Detroit City has had the most dramatic ups and downs in new mortgages since 2001 in the
region, state and country (page 12)
The share of minority borrowers continues to increase, but it remains mostly below
pre-crisis levels (page 12)
Contents
Detroit Housing Market Trends
Zip Code–Defined Districts
4
Sales Prices Continued to Increase
5
Household Equity Continued to Increase: Underwater Loans Continued to Decrease
6
Seriously Delinquent Loans Down to Pre-Crisis Levels
7
Foreclosures and REOs Nearly Down to Pre-Crisis Levels
8
Home Sales Down from 2014; Rents Growing Slowly
9
Unemployment Increased Slightly; Size of Labor Force Remained the Same
10
Special Feature: Home Mortgage Disclosure Act
New Mortgages and Home Improvement Loans Increased Slowly
11
Detroit City Experienced Most Dramatic Ups and Downs since 2001
12
Detroit News
Key Detroit-Focused Lending Programs
13
Detroit Housing Market News
15
Detroit Business News
19
Other Related Links
21
Acknowledgments
22
3
Zip Code–Defined Districts
Northeast Detroit
Detroit Westside
Southwest
Detroit
Sources: Federal ReserveDebt,
Bank of Chicago and Mapsof.net.
household
mortgages,
$9,833
4
MARKET TRENDS
Sales Prices Continued to Increase
Mean and Median Sale Prices, Detroit and Wayne County
Detroit mean
Detroit median
Wayne County mean
Wayne County median
Thousands of dollars
140
120
100
80
60
40
20
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: Urban Institute calculations from CoreLogic data.
Note: All series are based on three-month moving averages.
Mean Sale Prices by District, Detroit
Thousands of dollars
120
Detroit Westside
East Riverfront
Northeast Detroit
Southwest Detroit
Woodward Corridor
All districts
100
80
60
40
20
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: Urban Institute calculations from CoreLogic data.
Note: All series are based on three-month moving averages.
5
MARKET TRENDS
Household Equity Continued to Increase;
Underwater Loans Continued to Decrease
Household Equity and Share of Loans
Underwater, Detroit and Wayne County
Number of Loans Underwater, Detroit
and Wayne County
Detroit: share underwater
Detroit
Detroit: average household equity
Wayne County: share underwater
Thousands
Wayne County: average household equity
160
60%
140
50%
120
40%
100
30%
80
20%
60
10%
40
0%
20
-10%
2009
Wayne County
2010
2011
2012
2013
2014
0
2009
2015
Source: Urban Institute calculations from CoreLogic data.
2010
2011
2012
2013
2014
2015
Source: Urban Institute calculations from CoreLogic data.
Share of Loans Underwater by District, Detroit
60%
Detroit Westside
East Riverfront
Northeast Detroit
Southwest Detroit
Woodward Corridor
All districts
50%
Debt,
household
mortgages,
$9,833
40%
30%
20%
10%
0%
2009
2010
2011
2012
2013
2014
2015
Source: Urban Institute calculations from CoreLogic data.
6
MARKET TRENDS
Serious Delinquency Loans Down
to Pre-Crisis Levels
Serious Delinquency Rates, Detroit and Wayne County
Detroit
Wayne County
35%
30%
25%
20%
15%
10%
5%
0%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Sources: Urban Institute calculations from CoreLogic data.
Note: Includes loans delinquent by 90 days or more and loans in foreclosure or REO.
Serious Delinquency Rates by District, Detroit
Detroit Westside
East Riverfront
Northeast Detroit
Southwest Detroit
Woodward Corridor
All districts
35%
30%
25%
Debt,
household
mortgages,
$9,833
20%
15%
10%
5%
0%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: Urban Institute calculations from CoreLogic data.
Note: Includes loans delinquent by 90 days or more and loans in foreclosure or REO.
7
MARKET TRENDS
Foreclosures and REOs Nearly Down
to Pre-Crisis Levels
Foreclosure Rates, Detroit and Wayne County
Detroit
REO Rates, Detroit and Wayne County
Wayne County
Detroit
10%
Wayne County
14%
9%
12%
8%
10%
7%
6%
8%
5%
6%
4%
3%
4%
2%
2%
1%
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2005
0%
0%
Sources: Urban Institute calculations from CoreLogic data.
Sources: Urban Institute calculations from CoreLogic data.
Foreclosure Rates by District, Detroit
REO Rates by District, Detroit
Detroit Westside
East Riverfront
Detroit Westside
East Riverfront
Northeast Detroit
Southwest Detroit
Northeast Detroit
Southwest Detroit
Woodward Corridor
All districts
Woodward Corridor
All districts
12%
16%
14%
10%
Debt,
household
mortgages,
$9,833
8%
6%
12%
10%
8%
6%
4%
4%
2%
2%
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Sources: Urban Institute calculations from CoreLogic data.
2005
0%
0%
Sources: Urban Institute calculations from CoreLogic data.
8
MARKET TRENDS
Home Sales Down from 2014; Rents Growing
Slowly
Number of Sales by Type, Detroit, 2005–15
New construction
Resale
REO
Short sale
Other
30,000
25,000
20,000
15,000
10,000
5,000
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
(Q1–Q3)
Source: Urban Institute calculations from CoreLogic data.
Sales Year Over Year
New construction
Resale
REO
Short
sale
Other
Total
sales
2014 Q1–3
161
4,947
3,480
53
2,288
10,929
2015 Q1–3
137
4,083
2,048
48
2,254
8,570
-14.9%
-17.5%
-41.1%
-9.4%
-1.5%
-21.6%
% change YOY
Sources: Urban Institute calculations from CoreLogic data.
Note: 2015 numbers are based on Q1–Q3 only.
Median Rent by District, Detroit
Detroit Westside
East Riverfront
Northeast Detroit
Southwest Detroit
Woodward Corridor
All districts
Debt,
household
mortgages,
$9,833
880
860
840
820
800
780
760
740
720
700
680
660
2011
2012
Source: Urban Institute calculations from Zillow data.
2013
2014
2015
9
MARKET TRENDS
Unemployment Ticked up Slightly after Months of
Decline; Size of Labor Force Remained the Same
Unemployment Rate by County
Percent
Wayne
Macomb
Oakland
20
18
16
14
12
10
8
7.24
5.95
5.00
6
4
2
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Sources: US Bureau of Labor Statistics, Moody's Analytics, and Urban Institute.
Size of Labor Force by County
Hundred thousands
Wayne
Macomb
Oakland
10
9
8
7.52
7
6.24
Debt,
household
mortgages,
$9,833
6
5
4
4.16
3
2
1
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Sources: US Bureau of Labor Statistics, Moody's Analytics, and Urban Institute.
10
SPECIAL FEATURE: HOME MORTGAGE DISCLOSURE ACT
New Mortgages and Home Improvement Loans
Remain Low
Purchase Mortgage Originations, Detroit
8,480
7,782
6,599
6,464
7,756
6,890
3,964
1,400
2001
2002
2003
2004
2005
2006
2007
2008
476
315
210
203
333
490
2009
2010
2011
2012
2013
2014
Sources: Home Mortgage Disclosure Act (HMDA) and Urban Institute.
Home Improvement Loan Originations, Detroit
3,475
2,436
2,078
Debt,
household
mortgages,
$9,833
1,061
751
561
448
166
2001
2002
2003
2004
2005
2006
2007
2008
51
14
14
12
17
21
2009
2010
2011
2012
2013
2014
Sources: HMDA and Urban Institute.
11
SPECIAL FEATURE: HOME MORTGAGE DISCLOSURE ACT
Detroit City Has Experienced Most Swings in
New Mortgages since 2001
Changes to Purchase Mortgage Originations
Detroit city
Wayne County
Detroit MSA
Michigan
US
140
120
100
80
60
40
20
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2013
2014
Sources: HMDA and Urban Institute.
Note: Base year is 2001 set at 100.
Purchase Mortgages Taken Out by Minority Borrowers
Detroit city
Wayne County
Detroit MSA
Michigan
US
90%
80%
70%
60%
Debt,
household
mortgages,
$9,833
50%
40%
30%
20%
10%
0%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Sources: HMDA and Urban Institute.
Note: Minority households are defined as those with African American or Hispanic heads of household.
2011
2012
12
Key Detroit-Focused Lending Programs
Program
Summary
Features
Detroit 0% Home
Repair Loans
Program
0% interest loans from $5,000
to $25,000 to help homeowners
repair their homes; joint effort
of the City of Detroit, Detroit
Local Initiatives Support
Corporation (LISC), and Bank of
America
•
Combines a zero down payment,
low-interest fixed-rate
mortgage, and other favorable
terms with rehabilitation dollars
needed to rebuild Detroit’s
classic houses and
neighborhoods
$6.5 million lending program for
businesses owned by people of
color and that primarily hire
people of color; goal is to
provide support for Detroit
small businesses that lack
access to traditional forms of
credit
Offers grants of up to $30,000
to homebuyers for down
payment, closing costs, and
rehabilitation assistance in
Wayne County neighborhoods
•
Announced in June 2015 and
available only for Detroit City
employees. Highlights include
• up to 300% loan-to-value
ratio allowed;
• renovation funding included;
• fifteen-year fixed-rate
mortgage; and
• loans held by Flagstar
Provides affordable loans to
Detroit residents who
successfully bid in the Neighbors
Wanted auction.
•
•
•
•
Detroit
Neighborhood
Initiative
Entrepreneurs of
Color Fund
FirstMerit Bank
Down Payment
Assistance
Program
Flagstar Bank
City Employee
Loan Program
Liberty Bank
Detroit Home
Restoration
Program
More Information
Homeowners must own and
occupy their home for at least six
months before applying
Minimum 560 FICO; free credit
counseling to improve credit score
Insurance and taxes must be
current
A cooperative effort of NACA,
Bank of America, and the
Opportunity Resource Fund;
announced April 2015
http://www.detroithomeloa
ns.org/
•
•
Established September 2015
Supported by the Detroit
Development Fund, the JPMorgan
Chase Foundation, and the W.K.
Kellogg Foundation
https://www.jpmorganchas
e.com/corporate/news/stor
ies/entrepreneurs-of-colorfund.htm
•
Down payment assistance loan
forgiven after five years
Owner must occupy home as a
primary residence
Mandatory financial literacy
course
620 minimum FICO
Max loan amount $417,000
Prepurchase counseling required
Taxes and insurance must be
escrowed
http://auctions.buildingdetr
oit.org/Content/files/financ
ing/auctions_financing_first
merit_2015_09_28.png
First six months interest-only
payments (rehabilitation phase)
Down payment assistance
available for those earning below
100% of area median income (AMI)
Mandatory housing counseling
http://www.libertybank.net
/community/detroit.cfm
•
•
•
•
•
•
•
http://www.buildingdetroit.
org/detroit-neighborhoodinitiative/
http://www.detroitmi.gov/
News/ArticleID/318/NewMortgage-Program-Aimsto-Boost-EmployeeResidency-in-DetroitIncrease-Wave-of-HomeRenovation-Projects
13
Key Detroit-Focused Lending Programs
Program
Summary
Features
Talmer Bank &
Trust
Conditional
Grant
Offers $25,000 in a forgivable
grant to assist auction winners
of the Detroit Land Bank
Authority with home repair
costs for homes in Marygrove
neighborhood
Provides forgivable down
payment assistance for primary,
owner-occupied residences
within select city limits in
Wayne County
•
Wells Fargo
HomeLIFT℠
down payment
assistance
program
•
•
•
•
•
•
Burns off at a rate of 20 percent
a year
Owner must occupy home as a
primary residence
Funds cannot be used for home
purchase
$15,000 assistance forgivable
20% each year for five years
Administered through
NeighborWorks® America and
its affiliates
Household income cannot
exceed 120% of AMI
Counseling required
More Information
http://auctions.buildingdetroit
.org/Financing
https://www.wfhmconsumere
vents.com/UserDocs/events/1
07504-2DET_DPA_and_Income_Limits_
ES.pdf
14
Detroit Housing Market News
“Housing Market Rebound”
Crain’s Detroit Business, December 27, 2015
Unseasonably warm weather makes for a long building season. Sales of existing homes also are brisk, with the
backlog of foreclosed properties nearly gone. Sales prices continued to inch up this past year; in the fourcounty region, median sale prices climbed from $139,000 in November 2014 to $146,000 in November 2015,
according to Realcomp II Ltd. The increase was the sharpest in Wayne County, where median sale prices rose
17.6 percent, from $85,000 to $100,000. Macomb County's prices increased 4.8 percent, from $125,000 to
$131,000. Livingston increased 4 percent, from $200,000 to $208,000, and Oakland rose 3.9 percent, from
$185,000 to $192,250.
“Underwater on Your Mortgage? This Program Could Help”
Detroit Free Press, December 21, 2015
Homeowners who owe more on their house than it is worth have until the end of 2016 to act under the Home
Affordable Refinance Program, or HARP. More than half of eligible Michigan homeowners live in metro
Detroit, according to the Federal Housing Finance Agency's data as of June 2015. Under HARP, borrowers
can refinance without an appraisal in many cases and regardless of how far their homes have fallen in value.
Mortgage rates are expected to nudge up further next year, especially if the Fed raises rates three times
more as expected in 2016. "Sooner is better than later," said Don Bleuenstein, national sales director for
Troy-based Flagstar Bank. "While rates aren't at record lows, they are still very much at historic rates."
“Congress Passes Detroit-Led Demolition Measure and More”
Detroit Free Press, December 18, 2015
On December 18th, 2015, Congress passed a $1.1-trillion spending bill that keeps government open through
the next fiscal year and allows up to $2 billion to be put in a fund to prop up demolition efforts in Detroit and
other cities in Michigan and across the nation. The spending bill, which passed the House, 316-113, and the
Senate, 65-33, now goes to Obama for his signature.
“Detroit-Led Blight Fight May Spur Demolitions across U.S.”
Detroit Free Press, December 18, 2015
A Michigan-led effort to get $2 billion more put into a federal neighborhood stabilization fund could touch off
one of the biggest initiatives to demolish abandoned, derelict buildings in older urban centers ever seen, with
cities across the Midwest—Detroit first and foremost among them—standing to benefit. Congress is poised
this week to pass a sweeping spending bill that includes what had been a little-noticed item to move $2 billion
in unspent mortgage relief money into the U.S. Treasury’s Hardest Hit Fund, which in recent years has
become a major source of funding for blight removal efforts, especially those in Michigan, Ohio and Indiana.
15
Detroit Housing Market News
“Home Sales Drop in November while Median Prices Continue to Rise”
Crain’s Detroit Business, December 10, 2015
Metro Detroit home and condominium sales slowed in November, dropping 4.2 percent year-over-year,
according to new report released Thursday. But median home and condo sale prices continued their positive
upward swing, rising by 5 percent last month from November 2014 figures. In the four-county region, median
sale prices climbed from $139,000 in November 2014 to $146,000 last month, according to Realcomp. The
increase was the sharpest in Wayne County, where median sale prices rose 17.6 percent from $85,000 to
$100,000. Macomb County’s increased 4.8 percent ($125,000 to $131,000), while Livingston increased 4
percent from $200,000 to $208,000 and Oakland rose 3.9 percent from $185,000 to $192,250.
“Detroit Invests in Delray with Major Blight Removal”
detroitmi.gov, November 24, 2015
One of Detroit’s proudest but most challenged neighborhoods is undergoing a massive blight removal blitz as
part of a commitment from the City of Detroit, Mayor Mike Duggan and Council Member Raquel CastañedaLópez announced November 24th. In all, thirty-three homes in the west end of the Delray community have
been targeted for demolition. Work already is underway. The city also will be removing a significant amount
of “non-structural” blight, including overgrown brush and scrub trees on existing vacant land. The Delray
project is being paid for with $750,000 the City Council allotted to the community from proceed received
from the State of Michigan as part of its land acquisition for the planned Gordie Howe International Bridge
Project. While a portion of Delray will be acquired by the State for its bridge project, the City chose to
reinvest this money into the area of Delray that will remain.
“Trust to Invest up to $30M in Detroit Home Rehab”
Detroit News, November 23, 2015
The AFL-CIO Housing Investment Trust announced it will invest up to $30 million into a home repair program
that will kick off with a pilot program in four city neighborhoods. The effort is a partnership between civic and
community organizations to rehabilitate up to 300 blighted single-family homes and properties. Mayor Mike
Duggan said the administration is asking Detroit’s City Council to transfer 25 properties to the trust for the
initial block of homes. The trust, he said, will be responsible for rehabbing and selling the properties located
within the city’s Bagley, Shultz, Crary/St. Mary’s and East English Village neighborhoods.
“Study: Taxes Hinder Detroit Comeback”
Detroit News, November 10, 2015
A new report finds Detroit still is plagued by a broken property tax system, with owners paying too much and
businesses given tax breaks that don’t help the city. The researchers recommend property tax reductions of
up to 70 percent in some areas, according to the report released by the Lincoln Institute of Land Policy.
Among the report’s recommendation is implementing a land-based tax. That is based on the value or size of a
piece of land, with no additional tax for new development or improvements.
16
Detroit Housing Market News
“Housing Deals Boost Midtown's Revival in Detroit”
Detroit Free Press, November 2, 2015
Five years after the launch of an incentive program to encourage people to move into areas in and around
Detroit's Midtown, organizers of the effort say it has been a success at bringing a diverse mix of people into the
neighborhood—so much that the incentives will likely keep going even after the pilot project comes to an end.
To date, it’s credited with bringing nearly 1,000 new residents to Midtown, part of a rush to an area that has
raised rents and encouraged new developments, according to new data from Midtown Detroit Inc., the
development agency that manages the program.
“$3.7M Extra Paid in Detroit's Blight Fight”
Detroit Free Press, November 1, 2015
A controversial deal between Detroit’s land bank and several large contractors designed to speed up
demolitions at a set price instead ended up costing the city at least $3.7 million more than expected,
according to records reviewed by the Free Press. The higher costs meant fewer blighted eyesores would be
torn down with the $20 million spent on contracts with three demolition companies.
“Detroit to Get $21 Million More for Blight Demolition”
Detroit Free Press, October 28, 2015
The City of Detroit stands to receive an additional $21.25 million in demolition money from the federal
government under a proposal authorized by the Obama administration. The money will be enough to take
down nearly 1,300 blighted structures if recent averages hold.
“$65 Million Orleans Landing Development Breaks Ground—Transformative Project Marks a First on
Detroit’s Riverfront in 25 Years”
detroitmi.gov, October 23, 2015
The $65 million Orleans Landing celebrated the start of construction with a groundbreaking ceremony on
October 23rd on the future site of the nearly eight-acre development and the first market-rate residential
new neighborhood construction project on Detroit’s east riverfront in 25 years. Detroit Mayor Mike Duggan
and Partners of Rivertown Phase I, LLC were joined by business and community leaders who made the publicprivate partnership possible and the transformative project a reality. Orleans Landing will bring a new
neighborhood and mixed-use community to the riverfront with 278 apartments and 10,500 square-feet of
retail space. The residential plans include one- and two-bedroom homes, flats, hybrid retail/lofts, and 30
townhouses with garages, all sustainably built to Enterprise Green Community criteria standards. Affordable
housing rates will be offered on 20 percent of the available residential units. Construction is projected to be
completed April 2017.
“Detroit Land Bank Program Boosts Vacant Lot Sales”
Crain’s Detroit Business, October 19, 2015
Property owners can buy adjoining vacant lots online with a credit card at buildingdetroit.org. Buyers enter
their home address into the system and the vacant lot next door will pop up. “We try to make it simple,” Fahle
said. In addition to credit cards, lots can be purchased with a cashier’s check or money order, but not cash, at
the DLBA office downtown and at special side-lot sales the land bank hosts in individual city districts.
2,571 vacant lots have been sold in the city since the program started in June 2014.
17
Detroit Housing Market News
“J.P. Morgan Chase Teams to Help Detroit Nonprofits Launch New Programs”
Crain’s Detroit Business, October 8, 2015
The third cohort of J.P. Morgan Chase’s Detroit Service Corps, made up of 12 managers from all of the bank’s
lines of business, will start helping four area nonprofits with a variety of projects on October 12th.
Three Chase managers will be assigned to each nonprofit for three weeks. They include employees from
Australia, India and England. The Chase teams will help:
• Eastern Market create a community-based organization that will develop mixed-use projects, including
housing and commercial space to incubate food businesses and develop a food processing and distribution
facility in the market district.
• EcoWorks develop a retail and wholesale sales plan for reclaimed materials, which will include creating
jobs and apprenticeship and training programs.
• Greening of Detroit create a workforce development program to teach landscaping skills to Detroiters
with extreme barriers to employment.
• TechTown, the business incubator affiliated with Wayne State University, develop a program to help the
nonprofit’s professional services program connect brick-and-mortar businesses in Detroit’s
neighborhoods with technical assistance.
• Chase has committed to sending two teams per year to Detroit through 2018.
“Blight Blitz Builds up Detroit Property Values”
Detroit News, October 7, 2015
Home property values in Detroit are beginning to increase in areas where blight has been removed, according
to a new report. But the development comes at time when money for demolition is drying up. The 36-page
report, commissioned by Rock Ventures and the Skillman Foundation and released October 6th, found
demolitions have increased the value of surrounding homes within 500 feet by 4.2 percent, or an average of
$1,106. Citywide, that amounts to an increase in home values of more than $209 million. The report also
suggests that combined with other efforts by the city that include code enforcement and sales of public
assets such as side lots, the value of homes nearby increased by 13.8 percent, or an average of $3,634.
Citywide, that amounts to an increased property value of about $410 million.
“New Detroit Field Guide Released to Help Residents With Vacant Lots”
Next City, October 5, 2015
After decades of population loss, many of Detroit’s neighborhoods are faced with an overabundance of
vacant lots where houses once stood. Even the city’s healthiest, densest areas aren’t immune. Over 23.4
square miles of the city — 16.8 percent of Detroit’s total area — is vacant land. The problems associated with
vacant lots stem from a lack of stewardship. While the city has made efforts to encourage residents to
become stewards of vacant land over the years, most notably through an initiative that sells side lots for just
$200 to adjacent homeowners, few tools have been in place to help those buyers care for lots in a sustainable
way. But today, Detroit Future City released “Working With Lots: A Field Guide,” one of the first aids for
residents and community groups that are caring for and beautifying lots in their neighborhoods, transforming
them from liabilities into assets.
18
Detroit Business News
“DEGC Accepting Applications for Event to Match Small Businesses with Major Buyers”
Crain’s Detroit Business, December 21, 2015
Starting today, the Detroit Economic Growth Corp. is taking applications from small Detroit businesses to
meet with representatives from Quicken Loans, Blue Cross Blue Shield of Michigan, Wayne State University
and 13 other anchor institutions in the city. Up to 200 companies may be chosen to meet. They will be
scheduled during DEGC’s second annual D2D Matchmaking Opportunity event, Feb. 11. D2D, a DEGC
program, aims to connect Detroit businesses by linking local buyers and suppliers.
“Kresge Approves $2.2 Million in Grants Aimed at Detroit Revitalization”
Crain’s Detroit Business, December 4, 2015
A $550,000 grant from the Kresge Foundation will fund among other things, creation of a community
development corporation to spur development of the Eastern Market district and surrounding
neighborhoods. The grant, which will go to Eastern Market Corp. over the next three years, will also support
operations, Kresge said in a release. The funding is one of 10 grants approved as part of $2.2 million in Detroit
revitalization grants approved by the Troy-based foundation’s board.
“Detroit Chamber Unveils Support Group for Middle Market Businesses”
Crain’s Detroit Business, November 19, 2015
The Detroit Regional Chamber unveiled an organization Thursday that will try to boost metro Detroit's
middle market businesses, a potential growth segment in the region. The Middle Market Council, a
partnership between the chamber and the National Center for the Middle Market, is set up to grow
companies that make up 30 percent of employment in Southeast Michigan.
“New GSA Initiative in Detroit Kicks Off with $74.9 Million Investment”
Crain’s Detroit Business, November 16, 2015
The U.S. General Services Administration launched an "Economic Catalyst Initiative" in Detroit on Monday
with a plan to spend nearly $75 million to renovate an office building and consolidate federal workers in it.
The goal of GSA's initiative is to better align the federal agency’s building, leasing and relocation plans with
the economic development goals of local communities. The first Detroit project will be at 985 Michigan Ave.,
which it purchased in July 2014 for $1. GSA plans to invest $74.9 million for renovations and consolidate
federal agencies currently leasing in 40 locations across Detroit there.
“$2.5M Knight Foundation Grant to Boost Detroit Business”
Detroit News, October 21, 2015
The Knight Foundation is pumping $2.5 million into the Detroit business economy with a grant to the Detroit
Development Fund. The grant will support early stage retail and creative businesses in the city and advance
the fund’s mission of revitalizing economically distressed areas in Detroit. It will also have a focus on minority
and female entrepreneurs, officials said.
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Detroit Business News
“Sakthi Automotive Breaks Ground on $30M Detroit Facility”
detroitmi.gov, October 19, 2015
Sakthi Automotive Group broke ground October 19th on a new $30 million, 181,000-square-foot facility as it
continues to expand its operations in southwest Detroit. The new Detroit casting and machining facility will
create 350 new jobs, including some for returning citizens. It is part of a larger campus, which is to include the
redevelopment of Southwestern High School and the former American Mailers Building. Sakthi already
employs 226 people at its existing facility next door to the planned new campus.
“Is Detroit Really Rebounding?”
Citylab, October 8, 2015
The Pew Charitable Trusts just released a report on how things stand in Detroit nearly one year after the city
exited its unprecedented bankruptcy. Things are looking up, Pew reports. Still, it’s not entirely fair to describe
the changes in Detroit as a “rebound.” That suggests that, with enough time, given present conditions, things
will actually turn around. For some Detroiters, that’s right. For the poorest and most vulnerable residents,
however, it’s not clear that their situation is improving. There are some aspects of Detroit that could fairly be
described as worsening. The scale and severity of the vacancy crisis in Detroit make forward progress
extremely difficult under any circumstances.
“Duggan Lauds Bus Service, Technology at Homecoming”
Detroit News, October 1, 2015
During the annual Detroit homecoming, Mayor Mike Duggan lauded Detroit’s improved bus service and
federal dollars that enabled Detroit to purchase 80 new buses. There are 192 buses currently running. They
need 188 to make a full schedule. Last year, they’d had 164, Duggan said. Duggan also told attendees about
his administration’s nuisance abatement program, home rehabilitation partnership programs, demolition and
other efforts to revitalize Detroit’s housing stock. Another key focus of his talk was the progress of
demolition on defunct homes in the city. Historically, Duggan noted, the city was knocking down houses in a
“mindless pattern.” Duggan says that nearly 7,000 blighted houses have come down under his reign. The city
is demolishing the homes at a rate of 100 to 140 per week.
“Hello Detroit: Amazon Introduces Corporate Office in the D”
detroitmi.gov, September 9, 2015
On September 9th, Amazon announced the unveiling of its corporate office in Detroit. Amazon has hundreds
of employees across the state of Michigan and is in the process of building the downtown Detroit office into a
growing technology hub. Amazon’s presence in Michigan will be increasing with the expansion of the Detroit
office space in early 2016 and addition of more full time technology-focused jobs. To introduce Amazon into
the Detroit community, Amazon is donating $10,000 and 30 Amazon Fire tablets to the Carver STEM
Academy program in the Detroit Public Schools. The Carver STEM Academy offers students in prekindergarten through eighth grade a curriculum rich in science, technology, engineering, the arts and
mathematics. “We have a long-term plan to grow our presence in the great state of Michigan, and bring more
full-time, high-tech jobs to the city of Detroit,” said Peter Faricy, vice president for Amazon Marketplace. “We
have are focused on hiring in the state and look forward to being a part of the community, professionally and
personally. Michigan is a rapidly growing technology corridor and we’re eager to bring the incredible local
Detroit talent to Amazon.”
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Other Related Detroit Resources
•
Bedrock Real Estate Services: http://www.bedrockmgt.com/media.php
•
Building Detroit: http://www.buildingdetroit.org/
•
Crain’s Detroit Business: http://www.crainsdetroit.com/topic/1273/real-estate
•
Detroit & JPMorgan Chase: http://www.jpmorganchase.com/corporate/CorporateResponsibility/detroit.htm
•
Detroit Dashboard (City of Detroit): http://www.detroitmi.gov/Detroit-Dashboard
•
Detroit Economic Growth Corporation: http://www.degc.org/
•
Detroit Engagement Timeline: http://www.quickenloans.com/press-room/detroit-timeline/
•
Detroit Fast Facts: http://www.quickenloans.com/press-room/wp-content/uploads/2015/09/09102015Detroit-Fast-Facts.pdf
•
Detroit Future City: http://detroitfuturecity.com/
•
Opportunity Detroit on Twitter: https://twitter.com/OpportunityDET
•
What Bloggers Love About Detroit!: https://storify.com/BedrockRES/http-www-wethekingsmusic-com
•
Zillow Housing Roadmap to 2016: http://www.zillow.com/research/tag/housing-roadmap-to-2016/
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Acknowledgments
This housing market tracker was funded by a grant from JPMorgan Chase. We are grateful to
them and to all our funders, who make it possible for Urban to advance its mission.
The views expressed are those of the authors and should not be attributed to the Urban
Institute, its trustees, or its funders. Funders do not determine our research findings or the
insights and recommendations of our experts. Further information on the Urban Institute’s
funding principles is available at www.urban.org/support.
This housing market tracker and the accompanying blog post are part of a portfolio of Urban
products focused on Detroit. These products are funded as part of a broader collaboration with
JPMorgan Chase. Urban researchers are working with JPMorgan Chase to inform and assess the
firm’s philanthropic initiatives aimed at expanding economic opportunity. This includes JPMorgan
Chase’s $100 million, five-year commitment to support and accelerate Detroit’s economic recovery.
Learn more about Urban’s collaboration with JPMorgan Chase here.
Copyright © January 2016. Urban Institute. Permission is granted for reproduction of this file, with
attribution to the Urban Institute.
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