A Growing Desire for Bigger Homes
Renise Taylor, a Detroit native working in finance, is eager to purchase a larger home as she has outgrown her current residence and neighborhood in the city. However, the market poses significant challenges, particularly in the desirable neighborhoods Taylor is targeting. She notes that downtown Detroit has already seen an increase in prices, raising concerns about affordability.
Football’s Impact on Detroit’s Image
This weekend, the Detroit Lions will face off against the San Francisco 49ers in the NFC Championship game, vying for a spot in the Super Bowl. For decades, the Lions have been emblematic of the city’s struggles. However, their recent playoff victory after 32 years suggests a potential turning point. Should the Lions win the upcoming game, it would mark their first road playoff victory since 1957.
Uneven Recovery Following Bankruptcy
Detroit’s path to recovery since declaring bankruptcy in 2013 has been a mixed bag. Various initiatives, such as Rocket Companies relocating to Detroit and the Ilitch family investing in downtown development, have breathed new life into parts of the city. However, a recent survey indicates that Michigan, with Detroit as its sole major city, still falls short of being an attractive destination for young professionals. Issues like lower median incomes and a slow spread of revitalization efforts pose ongoing challenges.
A City in Transition
Once hailed as the hub of American automobile manufacturing, home to General Motors and Ford, Detroit has faced significant decline and a substantial loss of population over the past few decades. While it boasted a peak population of 2 million residents in the 1950s, recent data from the Census Bureau reveals a mere 600,000 inhabitants residing in the city.
The Impact of Population Flight
White flight in the 1970s contributed to Detroit’s struggles. As noted by Ronald Fisher, an economics professor at Michigan State University, over 310,000 White residents fled to the suburbs between 1970 and 1980. Eventually, the Black middle class followed suit, exacerbating the city’s challenges. In more recent times, the number of adults in Detroit without a high school diploma exceeds the count of college graduates.
Attracting Foreign Investors
Detroit has become an attractive market for foreign investors due to its affordable home prices. These investors are capitalizing on opportunities to purchase residential real estate, including blighted and abandoned properties, with hopes of turning a profit.
Michael Taylor’s Success Story
Real estate investor Michael Taylor bought his first Detroit property in 2018, rehabilitating it with an investment of $170,000. This success led him to venture further, investing in two additional properties with different partners. While the median sale price in Detroit remains significantly lower than the national median, prices have increased by 21.4% over the past year.
The Challenges of Detroit’s Size
Detroit’s vast land area poses a unique challenge for revitalization efforts. Thousands of abandoned homes and vacant lots exist throughout the city, making comprehensive restoration a formidable task. Downtown Detroit has seen success in attracting luxury retailers, with real estate listings well above the city’s median home price. However, these positive developments have yet to spread to other neighborhoods.
Chris Ilitch’s Redevelopment Plans
Chris Ilitch’s Olympia Development of Michigan is co-developing a $1.5 billion project in downtown Detroit, aiming to create a vibrant residential, hotel, office, retail, and mixed-use space. Similar to the transformation of a former rail yard in Manhattan by the Related Companies, Ilitch wants Detroit’s urban core to be an appealing place for people to live, work, learn, and enjoy themselves.
Fostering Talent for the New Economy
An essential component of the planned district is the University of Michigan Center for Innovation, a project already attracting approximately $200 million in funding. The center aims to cultivate talent for the emerging economy as part of Detroit’s ongoing recovery. The Ilitch family’s history in the city, beginning with their pizza-shop origins, underscores their commitment to Detroit’s resurgence.
Encouraging Young Professionals to Stay
To ensure Detroit’s progress, it is crucial for educated young individuals to choose to remain in the city. This relies on the availability of opportunities, employment, and affordable housing. Efforts are underway to retain graduates from the University of Michigan and Michigan State, urging them to make Detroit their home rather than seeking opportunities elsewhere. These endeavors, along with ongoing revitalization since the early 2000s, suggest Detroit’s recovery is gaining momentum and deserves recognition.