housing finance chartbook - urban
TRANSCRIPT
Housing Finance ChartbookDetroit Housing Tracker
Bing Bai, Laurie Goodman, Karan Kaul, Maia Woluchem, and Alyssa Webb
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 [email protected].
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)
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
Detroit Business News 19
Other Related Links 21
5
MARKET TRENDS
0
20
40
60
80
100
120
140
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Thousands of dollars
Detroit mean Detroit median Wayne County mean Wayne County median
Mean and Median Sale Prices, Detroit and Wayne County
Source: Urban Institute calculations from CoreLogic data. Note: All series are based on three-month moving averages.
0
20
40
60
80
100
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Thousands of dollars
Detroit Westside East Riverfront Northeast Detroit
Southwest Detroit Woodward Corridor All districts
Mean Sale Prices by District, Detroit
Source: Urban Institute calculations from CoreLogic data. Note: All series are based on three-month moving averages.
6
Household Equity Continued to Increase; Underwater Loans Continued to Decrease
MARKET TRENDS
Detroit Westside East Riverfront Northeast Detroit
Southwest Detroit Woodward Corridor All districts
Source: Urban Institute calculations from CoreLogic data.
0
20
40
60
80
100
120
140
160
Thousands
Number of Loans Underwater, Detroit and Wayne County
-10%
0%
10%
20%
30%
40%
50%
60%
Detroit: share underwater
Source: Urban Institute calculations from CoreLogic data.
Household Equity and Share of Loans Underwater, Detroit and Wayne County
7
MARKET TRENDS
$9,833
0%
5%
10%
15%
20%
25%
30%
35%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Detroit Westside East Riverfront Northeast Detroit
Southwest Detroit Woodward Corridor All districts
Serious Delinquency Rates by District, Detroit
Source: Urban Institute calculations from CoreLogic data. Note: Includes loans delinquent by 90 days or more and loans in foreclosure or REO.
0%
5%
10%
15%
20%
25%
30%
35%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Detroit Wayne County
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, Detroit and Wayne County
8
MARKET TRENDS
Sources: Urban Institute calculations from CoreLogic data.
0%
2%
4%
6%
8%
10%
12%
14%
16%
Sources: Urban Institute calculations from CoreLogic data.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Foreclosure Rates, Detroit and Wayne County
0%
2%
4%
6%
8%
10%
12%
14%
REO Rates, Detroit and Wayne County
Sales Year Over Year
Total sales
% change YOY -14.9% -17.5% -41.1% -9.4% -1.5% -21.6%
9
MARKET TRENDS
$9,833
0
5,000
10,000
15,000
20,000
25,000
30,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (Q1–Q3)
New construction Resale REO Short sale Other
Source: Urban Institute calculations from CoreLogic data.
Number of Sales by Type, Detroit, 2005–15
Sources: Urban Institute calculations from CoreLogic data. Note: 2015 numbers are based on Q1–Q3 only.
660
680
700
720
740
760
780
800
820
840
860
880
Detroit Westside East Riverfront Northeast Detroit
Southwest Detroit Woodward Corridor All districts
Median Rent by District, Detroit
Source: Urban Institute calculations from Zillow data.
10
Unemployment Ticked up Slightly after Months of Decline; Size of Labor Force Remained the Same
MARKET TRENDS
$9,833
7.24
5.95
5.00
0
2
4
6
8
10
12
14
16
18
20
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Wayne Macomb Oakland
Unemployment Rate by County
Sources: US Bureau of Labor Statistics, Moody's Analytics, and Urban Institute.
Percent
7.52
4.16
6.24
0
1
2
3
4
5
6
7
8
9
10
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Wayne Macomb Oakland
Hundred thousands
Sources: US Bureau of Labor Statistics, Moody's Analytics, and Urban Institute.
11
SPECIAL FEATURE: HOME MORTGAGE DISCLOSURE ACT
Debt, household mortgages,
476 315 210 203 333 490
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Purchase Mortgage Originations, Detroit
3,475
2,436
2,078
1,061
751
166 51 14 14 12 17 21
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Home Improvement Loan Originations, Detroit
Sources: HMDA and Urban Institute.
12
Detroit City Has Experienced Most Swings in New Mortgages since 2001
SPECIAL FEATURE: HOME MORTGAGE DISCLOSURE ACT
Debt, household mortgages,
$9,833
0
20
40
60
80
100
120
140
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Changes to Purchase Mortgage Originations
Detroit city Wayne County Detroit MSA Michigan US
Sources: HMDA and Urban Institute. Note: Base year is 2001 set at 100.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Purchase Mortgages Taken Out by Minority Borrowers
Detroit city Wayne County Detroit MSA Michigan US
Sources: HMDA and Urban Institute. Note: Minority households are defined as those with African American or Hispanic heads of household.
Key Detroit-Focused Lending Programs
Detroit 0% Home
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
• Homeowners must own and
months before applying
current
http://www.detroithomeloa
ns.org/
Detroit
Neighborhood
Initiative
low-interest fixed-rate
classic houses and
Opportunity Resource Fund;
announced April 2015
people of color; goal is to
provide support for Detroit
small businesses that lack
credit
Kellogg Foundation
to homebuyers for down
payment, closing costs, and
primary residence
employees. Highlights include
escrowed
http://www.detroitmi.gov/
News/ArticleID/318/New-
Mortgage-Program-Aims-
to-Boost-Employee-
Residency-in-Detroit-
Increase-Wave-of-Home-
Renovation-Projects
Wanted auction.
100% of area median income (AMI)
• Mandatory housing counseling
Talmer Bank &
Authority with home repair
neighborhood
a year
primary residence
purchase
http://auctions.buildingdetroit
.org/Financing
Wayne County
• Administered through
“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 four- county 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.
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 Castañeda- López 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.
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 public- private 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.
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.
“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.
“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 pre- kindergarten 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.”
• Building Detroit: http://www.buildingdetroit.org/
• Detroit & JPMorgan Chase: http://www.jpmorganchase.com/corporate/Corporate-
• 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/2015/09/09102015-
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.
Bing Bai, Laurie Goodman, Karan Kaul, Maia Woluchem, and Alyssa Webb
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 [email protected].
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)
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
Detroit Business News 19
Other Related Links 21
5
MARKET TRENDS
0
20
40
60
80
100
120
140
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Thousands of dollars
Detroit mean Detroit median Wayne County mean Wayne County median
Mean and Median Sale Prices, Detroit and Wayne County
Source: Urban Institute calculations from CoreLogic data. Note: All series are based on three-month moving averages.
0
20
40
60
80
100
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Thousands of dollars
Detroit Westside East Riverfront Northeast Detroit
Southwest Detroit Woodward Corridor All districts
Mean Sale Prices by District, Detroit
Source: Urban Institute calculations from CoreLogic data. Note: All series are based on three-month moving averages.
6
Household Equity Continued to Increase; Underwater Loans Continued to Decrease
MARKET TRENDS
Detroit Westside East Riverfront Northeast Detroit
Southwest Detroit Woodward Corridor All districts
Source: Urban Institute calculations from CoreLogic data.
0
20
40
60
80
100
120
140
160
Thousands
Number of Loans Underwater, Detroit and Wayne County
-10%
0%
10%
20%
30%
40%
50%
60%
Detroit: share underwater
Source: Urban Institute calculations from CoreLogic data.
Household Equity and Share of Loans Underwater, Detroit and Wayne County
7
MARKET TRENDS
$9,833
0%
5%
10%
15%
20%
25%
30%
35%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Detroit Westside East Riverfront Northeast Detroit
Southwest Detroit Woodward Corridor All districts
Serious Delinquency Rates by District, Detroit
Source: Urban Institute calculations from CoreLogic data. Note: Includes loans delinquent by 90 days or more and loans in foreclosure or REO.
0%
5%
10%
15%
20%
25%
30%
35%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Detroit Wayne County
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, Detroit and Wayne County
8
MARKET TRENDS
Sources: Urban Institute calculations from CoreLogic data.
0%
2%
4%
6%
8%
10%
12%
14%
16%
Sources: Urban Institute calculations from CoreLogic data.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Foreclosure Rates, Detroit and Wayne County
0%
2%
4%
6%
8%
10%
12%
14%
REO Rates, Detroit and Wayne County
Sales Year Over Year
Total sales
% change YOY -14.9% -17.5% -41.1% -9.4% -1.5% -21.6%
9
MARKET TRENDS
$9,833
0
5,000
10,000
15,000
20,000
25,000
30,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (Q1–Q3)
New construction Resale REO Short sale Other
Source: Urban Institute calculations from CoreLogic data.
Number of Sales by Type, Detroit, 2005–15
Sources: Urban Institute calculations from CoreLogic data. Note: 2015 numbers are based on Q1–Q3 only.
660
680
700
720
740
760
780
800
820
840
860
880
Detroit Westside East Riverfront Northeast Detroit
Southwest Detroit Woodward Corridor All districts
Median Rent by District, Detroit
Source: Urban Institute calculations from Zillow data.
10
Unemployment Ticked up Slightly after Months of Decline; Size of Labor Force Remained the Same
MARKET TRENDS
$9,833
7.24
5.95
5.00
0
2
4
6
8
10
12
14
16
18
20
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Wayne Macomb Oakland
Unemployment Rate by County
Sources: US Bureau of Labor Statistics, Moody's Analytics, and Urban Institute.
Percent
7.52
4.16
6.24
0
1
2
3
4
5
6
7
8
9
10
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Wayne Macomb Oakland
Hundred thousands
Sources: US Bureau of Labor Statistics, Moody's Analytics, and Urban Institute.
11
SPECIAL FEATURE: HOME MORTGAGE DISCLOSURE ACT
Debt, household mortgages,
476 315 210 203 333 490
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Purchase Mortgage Originations, Detroit
3,475
2,436
2,078
1,061
751
166 51 14 14 12 17 21
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Home Improvement Loan Originations, Detroit
Sources: HMDA and Urban Institute.
12
Detroit City Has Experienced Most Swings in New Mortgages since 2001
SPECIAL FEATURE: HOME MORTGAGE DISCLOSURE ACT
Debt, household mortgages,
$9,833
0
20
40
60
80
100
120
140
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Changes to Purchase Mortgage Originations
Detroit city Wayne County Detroit MSA Michigan US
Sources: HMDA and Urban Institute. Note: Base year is 2001 set at 100.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Purchase Mortgages Taken Out by Minority Borrowers
Detroit city Wayne County Detroit MSA Michigan US
Sources: HMDA and Urban Institute. Note: Minority households are defined as those with African American or Hispanic heads of household.
Key Detroit-Focused Lending Programs
Detroit 0% Home
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
• Homeowners must own and
months before applying
current
http://www.detroithomeloa
ns.org/
Detroit
Neighborhood
Initiative
low-interest fixed-rate
classic houses and
Opportunity Resource Fund;
announced April 2015
people of color; goal is to
provide support for Detroit
small businesses that lack
credit
Kellogg Foundation
to homebuyers for down
payment, closing costs, and
primary residence
employees. Highlights include
escrowed
http://www.detroitmi.gov/
News/ArticleID/318/New-
Mortgage-Program-Aims-
to-Boost-Employee-
Residency-in-Detroit-
Increase-Wave-of-Home-
Renovation-Projects
Wanted auction.
100% of area median income (AMI)
• Mandatory housing counseling
Talmer Bank &
Authority with home repair
neighborhood
a year
primary residence
purchase
http://auctions.buildingdetroit
.org/Financing
Wayne County
• Administered through
“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 four- county 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.
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 Castañeda- López 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.
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 public- private 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.
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.
“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.
“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 pre- kindergarten 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.”
• Building Detroit: http://www.buildingdetroit.org/
• Detroit & JPMorgan Chase: http://www.jpmorganchase.com/corporate/Corporate-
• 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/2015/09/09102015-
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.