Here is your utterly insane stat for the weekend:

According to the Chicago Tribune, the median price for a home sold in the month of December 2008 in Motor City is Seven Thousand, Five Hundred dollars.

I had to write it out that way because I simply couldn’t wrap my head around the numeral $7,500 for a home.

Granted, its in one of the most economically devastated regions of the country, but still — that data point is amazing.

The Trib:

“It may be tough to get financing for a new car these days, but in Detroit you can buy a house with a credit card.

The median price of a home sold in Detroit in December was $7,500, according to Realcomp, a listing service.

Not $75,000. Remove a zero—it’s seven thousand five hundred dollars, substantially less than the lowest-price car on the new-car market.

Among the many dispiriting numbers that bleakly depict the decrepitude of this onetime industrial behemoth, the steep slide of housing values helps define the daunting challenge to anyone who wants to lead this shrinking, poverty-pocked city of about 800,000 people . . .

On a positive note, Detroit’s homicide rate dropped 14 percent last year. That prompted mayoral candidate Stanley Christmas to tell the Detroit News recently, “I don’t mean to be sarcastic, but there just isn’t anyone left to kill” . . .

John Mogk, a professor at Wayne State University Law School:  “A thousand people are leaving the city every month and the city does not have the financial resources and the economic base to solve its own problems.”

Wow, those are just unbelievable numbers . . .

>

Source:
Detroit’s outlook falls along with home prices
Tim Jones
Chicago Tribune, January 29, 2009

http://www.chicagotribune.com/news/nationworld/chi-detroit-housingjan29,0,5435392.story

Previously:
Detroit Housing = ~$0 (February 27th, 2008)

http://www.ritholtz.com/blog/2008/02/detroit-housing-0/

Detroit Houses = $1 (August 13th, 2008)

http://www.ritholtz.com/blog/2008/08/detroit-houses-1/

Looking at the 1980 Chrysler Bailout (November 2008)

http://www.ritholtz.com/blog/2008/11/looking-at-the-1980-chrysler-bailout/

Category: Credit, Economy, Markets, Real Estate

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

51 Responses to “Median Home Price in Detroit = $7,500”

  1. Scott F says:

    What? Back to plain old data and economics stuff?

    I was hoping for more Rick Santelli stuff !

  2. VennData says:

    House prices can never fall below the cost of construction…. so that must be wrong. Know of any other “house prices can never(s)…?”

  3. mhdoc says:

    I have read elsewhere that the cheapest houses must be brought to code using approved contractors and come with assorted requirements that make their actual costs significantly higher. I believe this could bring down the average significantly.

  4. mhdoc alludes to the *Reality of the deal..

    on a different facet, this data point adds credit to the observation that “Capital goes where it’s treated best.”

    and, “Government corruption Can kill your Economy.”

    if the bureaucrats in Detroit, and Lansing, had half a clue, and actually, cared about re-growing Detroit’s Economy–it could be done. Obviously, the incentives pay in the other direction..

    I’d be ‘shocked’, but, somehow, I think that would create a Carbon-Tax Liability..

  5. The taxes alone make renting much cheaper

  6. franklin411 says:

    I heard the $7500 number from the guy at 538.com on Fast Money as well. I thought he misspoke!

  7. SWMOD52 says:

    Everything is cyclical. Start bulldozing the houses and return the land to agriculture and nature.

  8. for that price it better come with wheels

  9. TaosJohn says:

    That’s nothing. There are plenty of places in the Midwest where houses are cheaper than that. A few years ago a colleague of my wife’s bought a house in a Kansas town I won’t name for $2,500. It’s his “bail-out” house, by which he means where he goes when things fall apart. (NOT the current use of the term!) Prices in that particular spot are only a little higher now.

    Try western Nebraska if you want homes that cost less than cars. There are scads and scads of them. Maybe you big city boys need to get out more. :-)

  10. James says:

    The data can vary significantly, according to the source. And according to Zillow the median is $17,601:

    http://www.zillow.com/homes/map/detroit_rb/#/homes/for_sale/map/detroit_rb/42.46083,-82.942164,42.308677,-83.26832_rect/10_zm/

    And the variation from zip code to zip code within a region can be significant:

    http://www.zillow.com/homes/map/detroit_rb/#/homes/for_sale/map/detroit_rb/42.422827,-83.023703,42.34675,-83.186781_rect/11_zm/

  11. ottovbvs says:

    Obviously it’s horrible but places can have a surprising way of recovering….I lived in the UK in the late seventies early eighties and some staple industry towns were literally wiped out as coalmines and shipyards closed but I had occasion to visit one of these places about three years ago and it was amazing the recovery that had taken place over 20 years. Obviously the UK is a different place, they got help, but Detroit is going to get help….a great metroplex of around 1.5 million people is not g0ing to disappear….the auto industry will adjust it’s capacity to fit its SOM…the state will encourage new industry to come in…..I do think we are headed into a period of mild covert protectionism, no bad thing in my opinion……and ultimately the ship will right itself……

  12. ottovbvs says:

    “Try western Nebraska if you want homes that cost less than cars. There are scads and scads of them. Maybe you big city boys need to get out more.”

    ……And who apart from livestock would want to live in Bumf#@$ Nebraska.

  13. call me ahab says:

    I want to live in Nebraska

  14. mhdoc says:

    And who apart from livestock would want to live in Bumf#@$ Nebraska.

    If you make your living online, as more and more of us do, you can live anywhere you want. If you like nature, solitude, plan to home school your kids, etc. places like that have lots of appeal. You need to broaden your worldview :)

  15. KeithShepard says:

    Yeah, we’re down right now and Detroit is the butt of every joke, but Michigan will be back.

  16. Bruce in Tn says:

    Ottovbvs says:

    “……And who apart from livestock would want to live in Bumf#@$ Nebraska.”

    You are probably right, they do seem to have an intolerant view of snobs in Nebraska…thank goodness you live in a more tolerant neighborhood…

  17. Taylor says:

    “…a great metroplex of around 1.5 million people is not g0ing to disappear…”

    Interesting claim. And the evidence for this is? The planet is littered with the ruins of abandoned cities that were great in their day.

    Detroit is crumbling from the inside out. It is an example of how incompetent industry and corrupt governments have real consequences in our lives. Call it the canary in the coal mine.

  18. “….a great metroplex of around 1.5 million people is not g0ing to disappear….the auto industry will adjust it’s capacity to fit its SOM…the state will encourage new industry to come in…..I do think we are headed into a period of mild covert protectionism, no bad thing in my opinion”

    Reply:

    a) “Great” metroplexes (a questionable assumption concerning Detroit, but still) have appeared and disappeared throughout the course of human history. Troy was once a great metroplex. So great that epic poems were written about it. It took us until the twentieth century just to figure out where it had once been. History ain’t quite yet over, but Detroit very well may be.

    b) The idea that you can simultaneously encourage new industry whilst engaging in mild (or any degree) of covert protectionism is illogical unless you assume that the protectionism will favor new industry. The only means available to do so would be drastically reduced burdens on new industry that locates there. It is the best “protectionism” around. But Michigan is not, at present, tarrying along that road. It has some of the highest tax rates in the US, along with some of the most restrictive work rules. People are leaving the state in droves, particularly in the Detroit area, and many of them are heading South to states that actively promote new industries (like Mercedes Benz and BMW plants) and that allow workers the freedom to sell their labor to the highest bidder, instead of being required to curry favor with a union boss.

    And lastly, I’ve only just been through Nebraska once on a cross-country car trip. It seemed nice enough. All that productive farm land might just be the key to survival if this economy goes bad enough. Remember, without the agricultural surpluses of our farming communities, none of the rest of this matters. Whether you wish to live there or not, I guarantee that you have the ability to live where you choose at least in part because of the agricultural surpluses generated by Nebraska farmers, among others. that puts the food on your table.

  19. ottovbvs says:

    mhdoc Says:

    March 1st, 2009 at 11:53 am
    “You need to broaden your worldview”

    …….not really…..I grew up on a farm… have lived, worked or served in six countries… .and I wouldn’t want to teach my kids any of my bad habits…..each to his own I guess.

  20. ottovbvs says:

    The Curmudgeon Says:

    March 1st, 2009 at 11:59 am
    “Troy was once a great metroplex”

    …..What do say to folks whose economic, political and social ideas have as their point of reference…. Troy?……As it happens the area around Detroit is very nice……greatly preferable to western Nebraska I’d say although it’s clearly a matter of personal preference……As it happens I’ve also observed the phenomena I referred to in Britain in the Ruhr areas of Germany…..I was stationed there in the sixties when the Wirschaftwunder was in full operation….spent time there in the eighties when the German steel industry was on the floor….being Germans they managed the whole restructuring process better than the brits……but the whole area has revived…..

  21. ottovbvs says:

    The Curmudgeon Says:

    March 1st, 2009 at 11:59 am
    b) The idea that you can simultaneously encourage new industry whilst engaging in mild (or any degree) of covert protectionism is illogical unless you assume that the protectionism will favor new industry.

    ….Tell that to the Chinese, Indians, Germans and Japanese…..and yes it would favor new industry….duh

  22. mark mchugh says:

    My idea:

    We move Wall street to Detroit. That way, they won’t need big salaries anymore because the cost of living is so low. Urban re-vitalization.

  23. …..What do say to folks whose economic, political and social ideas have as their point of reference…. Troy?……

    You’d say, yes, Troy is a good example of a once-great metropolis that fell into ruin and historical oblivion, and it is utterly hubristic of me to think that age in which I live is unique in any way. I am duly humbled by the great sweep of history that went before me. Everyone in history faced essentially the same pressures of survival (food, clothing and shelter) that we face today, and perhaps I would do well to heed the wisdom I can cull from their experiences. Detroit may very well be just be another of many, many cities that rose and fell due to internal and external issues. In any event, Detroit’s resurgence is hardly necessary, nor a future certainty.

  24. “….Tell that to the Chinese, Indians, Germans and Japanese…..and yes it would favor new industry….duh”

    Oh, I see…you think that a beggar-thy-neighbor policy of protectionism is the proper medicine. I thought you were just speaking of Detroit and Michigan’s response to their decline relative to other states.

    In that case, I think you are correct that we should go lonjg on protectionism. Smoot-Hawley was incredibly effective in helping us out of the Great Depression. A good dose of mild protectionism would spur all sorts of new industries to take advantage of their ability to charge above-market prices, even if they won’t have any markets in which to sell their wares, because, of course, the markets they would otherwise sell them in would also be “protecting” their new industries. Indeed, a bit of protectionism and everyone gets richer.

  25. CyHastings says:

    I grew up outside of Detroit in the 80′s. About the only “new technology” coming out of Detroit back then was carjacking. The rule was to ALWAYS have a full tank of gas when venturing downtown for a concert or a ballgame.

    They used to hold a Formula 1 motor race in Detroit back then. If you like beautiful women…go to a Formula 1 race. This teenager walked around for hours with barely enough skin left to blink.

    It’s sad to see it go down so far. But it’s not a big surprise considering the political corruption, and the incompetence of the Big3. Detroit is reaping what is has been sowing for decades.

  26. Taylor says:

    “…many of them are heading South to states that actively promote new industries (like Mercedes Benz and BMW plants) and that allow workers the freedom to sell their labor to the highest bidder,”

    All those good Toyota jobs in the south.

    Actually it is truer to say that they are moving to Canada, where the government takes the burden of healthcare costs off the employers.

    If you want to just focus on wage rates, then by all means let’s talk about industries moving to Viet Nam.

  27. constantnormal says:

    Don’t read more into this than it says.

    A median home price of $7500 merely says that of all the home sales taking place, the midpoint of the list of sale prices occurred at $7500.

    It DOES NOT mean that the average sale price was $7500 (it could be higher or lower), or say anything about the average value of homes in Detroit. It could be that a small set of homes were repeatedly sold for peanuts, flipping between the bank and a series of hopeful jobless buyers unable to maintain even that level of payment.

    Assuming, of course, that the Chicago Tribune knows the difference between median, mean and mode. Upon perusing the article in question, I’m not at all sure that the author understands the difference.

    This is a nice proxy for the mark-to-market debate: if the bulk of the home sales taking place are distressed properties commanding little in the way of sale prices, does this say anything at all about the value of housing in Detroit, particularly the better-off neighborhoods, where there is no forced selling and houses are held awaiting a better market rather than selling?

  28. starko99 says:

    Constantnormal makes a great point about being careful with what we’re reading into the numbers.

    But assuming that homes really are amazingly cheap for an urban area, it strikes me as the kind of thing that could indeed lead to revitalization. Detroit could become a kind of land of opportunity.

    Obviously there have to be jobs, since even if you can pay for a house in cash, you need to eat. Barry pointed out that taxes are a big consideration. Which points to a problem that many [ex] industrial cities have- their tax/spending rates are built on a prior time.

    In a sense it’s like the banks- they have to shrink their balance sheet, the cities have to shrink the size of the government. It’s beyond Regan/anti-Regan rhetoric, it’s just economics.

  29. flipspiceland says:

    And don’t you know that Michiganders re-elected John Dingell once again.

    The people of Michigan cannot see that THEY themselves are responsible for their own slide into oblivion, by re-electing a pol that was backed by the UAW and now they are reaping the whrilwind. And guess what? They’ll re-elect him again.

    Detriot and Michigan deserve their fate, they earned it the old fashioned way. Thru bribes, corruption and stupidity.

    Even when it burns this summer or next, they will still vote for the men who made it happen.

  30. Greg0658 says:

    um .. study up on TIFs .. graduates of 20xx
    sound like a gold rush in the making

  31. James says:

    Don’t read more into this than it says.

    A median home price of $7500 merely says that of all the home sales taking place, the midpoint of the list of sale prices occurred at $7500.

    ————-

    Again . . . . also see “James” above on Zillow’s data, which is significantly different. Before the $7500 number is taken on face value, much more homework would have to be done.

  32. larster says:

    R. C. Longworth, a former Chicago Tribune reporter now working for a midwest thinktank, authored a book “In the Middle” about the crisis of losing the manufacturing base in the Midwest. I would recommend reading this as it focuses on possible solutions, none of which have been commented on above. This is an extremely thorny issue and will probably be repeated many times in other areas of the country. Until we develop an industrial policy for this country, we will continue to have a rolling disaster coming to your area in the near future.

  33. Darkness says:

    Even when it burns this summer or next, they will still vote for the men who made it happen.

    You mean the banks that through redlining in the sixties and seventies created the donut cities of the NE by choking off capital to urban residential development? Those men? I think those men are getting bailed out right now to the tune of 3 Trillion dollars. I’ll agree they are utterly incompetent and have zero interest in the long term welfare of the country, rust belt or otherwise. But I don’t remember voting for them or getting a chance to vote against them.

  34. impermanence says:

    $7500. should be a wake up call to all the bozos who pay more for a house than what it costs to fabricate. How can you have a “free market” in housing when everything that surrounds it is completely manipulated?

  35. AGG says:

    The solution to the Detroit housing problem:
    1) Triple the lot size on every three homes (two properties are swallowed by the other one).
    2) Keep the taxes the same as on the original single lot provided the owner funds the demolition of the houses on either side.
    3) You get lots of jobs in demolition.
    4) You get investment capital wanting the value of triple size lots for the taxes of one lot.

    Sure, your tax base just got knocked off by two thirds but so what? Do you want all of decrepitude or a smaller vibrant, sustainable, green city? Take your pick, Mr. Mayor.

  36. AGG says:

    Barry,
    I just read this at Common Dreams and though it only indirectly relates to the housing problem, it is germaine because of the “attitude” so many Atlas Shrugged types have to the problem of poverty in civilization:
    From RuthK
    What angers more than anything else is the new social darwinism that says that the only reason for poverty is laziness, drink, or drugs. This is arrogant small-minded cruelty.

    I am 72. I started working part-time before I was 16. Back in those days you could get a work permit at 15 and 1/2. Those were the days when tuition was low and jobs were plentiful. Although, as a female, I was always paid less than any male, I still managed to get a college degree by working and going part-time. By the time I was in my early 20s, my parents were ill and getting old. My sister and I helped support them for years. I always worked, paid my bills, and tried to save. I never took anything that I didn’t pay for. I paid into social security for 46 years. The only reason that it’s only 46 years is that I worked a part-time jobs for several years while I was looking for a full-time job.

    I was outraged at comments like “poverty is a state of mind” or, when speaking about women, that “it was better for a woman to be a wife of a lawyer than a lawyer”.

    I worry now about what will happen to social security. I’m better off than many people in that it is about half my income. But still I need it.

    Now, I feel like I’m not even considered to be a person by the power elite. What do they want? What are they telling people like me? That I should never have been born? that I should have been aborted? What

  37. Andy Tabbo says:

    It’s pretty damn sad actually. Talk about needing to radically “rethink” things. I’ve read stories about this happening to smaller cities. The solution is to bulldoze most of properties…reclaim the land for agriculture or parks etc…focus on the salvageable neighborhoods/zones….create incentives for business to come back to the area.

    I attribute it all to a complete lack of leadership. I don’t blame the unions on this one. Unions can act like little kids sometimes. They whine and complain….if the parents keep giving in, then guess what??…you end up with spoiled kids. The blame lies squarely on the leadership of the industries and government in that area, who clung to past glories for WAAAY to long. They utterly failed to realize the changing landscape of business for the last few decades and completely failed to adapt.

    Truly Pathetic.

  38. Andy Tabbo says:

    I was also add that the U.S. government also failed this area through shitty policies and silly industrial policies. CAFE standards were part of the problem up there. Those companies were never good at making smaller cars. By forcing those companies adhere to a CAFE standard, you forced them to engage in a business segment at which they were not very good.

    Take a look at JEEP. Jeep is terrific brand with plenty of loyal followers. Why cant’ there just be a Jeep Company that profitably makes jeeps? Because they gas mileage of jeeps sucks.

    Why can’t there just be a Ford Truck company that just profitably makes trucks? Because CAFE standards force them into the car market.

    Talk about your unintended consequences….

    Message to U.S. Government….

    “If you want more of something, subsidize it. If you want less of something, then TAX it.”

    If you want people to consume less gasoline, or use more gasoline more efficiently, then just TAX the shit out of gasoline. It’s the most elegant solution to force the market behavior you seek.

    [I know, I know, a gasoline tax hurts poor people a lot more, therefore you would need to refund some of that tax back to lower earners.]

    [I know, I know, taxes are bad and we shouldn't tax anything. I generally agree with that sentiment, but if it's Public Policy to reduce consumption of energy, then a Heavy Fuel Tax is the most straightforward solution.]

  39. AGG says:

    Andy Tabbo,
    What you say makes sense but the system is so gamed for the benefit of the few and the detriment of the rest that “policy” has become just a word in a document called a “law”. If you have the money, you do whatever you damned well please, regardless of the tax on this or that. We need a major flush but I’m not holding my breath. There are a whole bunch of people right here at TBP that have benefited from this unjust and cruel system .They are the ones most in position to help this country out of it’s fiscal mess and simultaneously are the least likely to do it because of their “greed is good” philosophy (what a horrible thing to call “love of truth”). They just don’t give a shit. So we are well and truly fucked. What the rich bozos don’t understand is that they are well and truly fucked also. They will end up in poverty and, in their case, it WILL be their own fault.

  40. call me ahab says:

    @ Andy Taboo @ 3:25

    good point

  41. MRegan says:

    The motto(s) on the City of Detroits flag:

    “Speramus Meliora” and “Resurget Cineribus.”

    We hope/await for improvement/something better
    and
    It rises again from the ashes.

    Too bad they don’t study much Latin anymore. Maybe some Italian would be more appropriate:

    “Lasciate ogne speranza voi ch’intrate”

  42. SWMOD52 says:

    In defense of Michigan in general western Michigan has some of the most spectacular beaches in the country. I kid you not. Around southwestern MI you will pay $150.00 a night to stay at a Super 8 motel a mile from the beach weekends in the summer.

  43. greg says:

    I’m shocked that Detroit is deteriorating in this way, given the excellent political leadership they’ve had for around the last 20 years, as well having, what are arguably some of the sharpest executives in charge of the only industry they rely on, and yes I’m talking about Rick “caught by surprise” Wagner, and Bob “flooring is in aisle 6″ Nardelli, and of course Bob “I always leave before they catch on” Putz, or rather Lutz.
    Oh yeah, Roger Smith too. He was a sharp tack.

  44. Bruce in Tn says:

    Evening..

    It was hoped that Australia would be spared some of the worst of this…but I see today they were just a bit later to the party than the rest of us…

    http://www.bloomberg.com/apps/news?pid=20601081&sid=aKxJ_7LMC6iM&refer=australia

    Australia’s February Manufacturing Index Slumps to Record Low

    I do understand how frustrating it can be for all of us Keynesians and Austrians, still working and recently laid off,well or poorly prepared, most more or less still hopeful…

    I also understand how angry people can become whether in chat rooms or protesting against government policies…it seems as Americans we’ve lost the ability to control our situation, and as individuals and as a country, we’re not used to this.

    Anyway, I still think that here the first of March what will continue to make this tsunami unavoidable is the global and still synchronous nature of the wave…I very much hope this is wrong.

  45. Pat G. says:

    After the ’67 riots my father moved us to the suburbs, St Clair Shores. A couple of years later I was doing a tour in Vietnam. I haven’t lived in Michigan in years. It’s tough watching the downtown metropolitan area where you went for coney islands (Onasiss) or hot fudge sundays (Sanders) on the weekends but… After years of governmental malfeasance and/or political corruption it was bound to happen. Even the small edge that Detroit garnered in manufacturing was sacrificed by the automakers who allowed foreign competitors to gain a foothold in the industry, then market share through technology and innovation. Even now as GM goes back to the well for the umpteenth time, you can still buy one of their products for 60 months, interest free. Because that’s how they’ve spent the last bailout money we gave them.

  46. usphoenix says:

    I am going to try a post from another article again. Perhaps the blog gods will let it float.

    @AGG: good points. The only problem is cities controlling Urban Growth Areas and inspections and permits and fees, with contributing friends, want lots to shrink. I heard a city planner recently say ” we can’t afford to service a subdivision with fewer than 7 lots per acre”. So much for aesthetics and freedom of choice. There is a stranglehold going on. Particularly in Oregon.

    Unions. Really, really easy target. I recall friends that were responsible for throughput, …. Can’t remember the term. Industrial something. Well I guess that confirms their current irrelevance. Anyway, they liked unions. If you had a floor problem you went to the steward and got it fixed. Robots aren’t unionized.

    Unfortunately, union leaders are now as corrupt as executives. So that makes them the bad guys?

    It’s not really about unions. It’s about alligator mouths and canary brains. Promises that won’t be kept. Perhaps there was this brief phase in American history thanks to Henry Ford, where corporate executives had no off-shoring choices, and chose to share the wealth with common employees. What a horrible idea. Pay a decent salary and they can afford your product. Duh.

    I am reminded of the one Adam Smith statement in “Wealth of Nations” about the American colonists that stayed with me: “They could afford to be generous”. I guess not so much anymore. Hey, their gated communities and McMansions are expensive.

    And finally, I was forced to endure an Industrial relations course that was nothing more than enduring for one quarter a “professor” ranting about the evil, violent nature of unions. So what was there a about industrial relations?

  47. John from Concord says:

    Detroit is just mind-boggling now. My dad grew up in MI and I remember as a kid driving with him through the Indian Village section of Detroit in the early ’70s… huge mansions built by Gilded Age auto tycoons, gorgeous properties right near downtown valued in the millions. A lot of those houses are for sale for peanuts right now — check this one, 7 bed, 6 bath, 3 car garage, walking distance to the marinas and Belle Isle and not far from downtown, servant’s quarters, gorgeous period detailing, $850k. Too spendy? There are some really nice ones around $500k, too. That’s still starter-house money in suburban Boston, even now.

    Some friends and I joked about buying 10-15 of them close together and moving there en masse. But… what do you do after that, in Detroit, in 2009?

    I wonder what’ll happen to those places.

  48. bdg123 says:

    I’m very familiar with Detroit. I had a lot of large clients in Michigan. I have said a couple of times on my blog were I to buy real estate anywhere in the world, it would be in downtown Detroit. And, if anyone has been to downtown Detroit, you would be aghast. It looks more like Berlin in 1945. There are fifty story buildings with windows knocked out. Block after block of closed storefronts.

    The perspective that Detroit ist kaput is highly publicized. There is forty years of complete mismanagement by the city that has caused corporations and individuals to leave. But, people aren’t necessarily leaving the state. They are headed to the burbs. Detroit’s suburbs are as nice as any major metropolitan area. But, they obviously are suffering tremendously as well.

    At some point in time, a city, country or society’s costs fall well below trend. And, that provides for opportunity. I’m not an attorney but the Michigan governor has stepped into city politics in the past under constitutional authority. At some point in time, if there is some ability to do so, I wouldn’t doubt if Detroit is taken over by Michigan. Parts of the city are a war zone but it is ridiculous to say all is lost. The city is geographically well positioned on the Great Lakes, the state has a top university system focused on substantial research, there are a lot of small technology companies popping up in Michigan and the city is so bad that the towel has been thrown in. Everyone has given up. There are terrible problems. But Michigan is still the same state that rose to become a powerhouse one hundred years ago.

    Sounds like a perfect opportunity for business and community regentrification and community redevelopment. And, for those who say there is no money, well, there sure is. Human capital creates wealth not the other way around. And, one need not look any further than Detroit’s past to prove this very point

  49. arcticpup says:

    Detroit has suburbs… it’s just the inner city that suffering from these low-low-low prices… this is normal. Look at the suburbs of Birmingham, Tory, West Bloomfield, and Royal Oak… for the truer cost of home ownership in/and around the inner city of Detroit. People in Metro Detroit own cars and commute to work… because their is no subways… and the bus transit sucks.

    Metro Detroit is one of the most diverse, affordable american cities… and it’s getting less expensive everyday… that alone will encourage new families… to come live downtown in the core and… eventually the city/state planners… will build mass transit and the city again will live to see another day. Redevelopment will occur. Or it will fail like everyother american city… because when one area fails… they all will… no one is immune in this economic crisis.

  50. Greg0658 says:

    don’t buy an old building with suburban TIFs in place .. if you get your own TIF maybe .. but I have seen TIFs around here alter the balance … right now an old Holiday Inn (that Mrs. DwD Eisenhower stayed in) transferred to Indians (Asia)is being driven further into collapse by new structures aided by TIFs and another TIF in negotiations for a brand new Holiday Inn …. in other words abandon in place .. wait .. ask for taxpayer assistance to make the new building figures work

    it was an interesting public hearing .. paper pushers want the deal (VC pay) .. manufacturing wants the deal (product creation) .. building trades want the deal (work) .. the city wants the deal (taxes) .. the schools don’t mind if made whole ….. all the while the neighboring city is offering a better deal for all of the above reasons

    I’m in favor of improvements and new buildings .. just irked at the legal leg work that outflanks others via perks ..
    sorry friends and neighbors but someone has to save the little people from yourself .. thats how I see it

  51. [...] holocaust in inner Detroit; no one is claiming you’ll be able to pick up a home for that price. Median Home Price in Detroit = $7,500 | The Big Picture I’m sorry that you’re ignorant of the macro economic underpinnings of the current economic down [...]