Why and How we can Prevent Detroit from becoming Unaffordable
Why and How we can Prevent Detroit from becoming Unaffordable
First, you have to understand Detroit's past. Outside of it being an industrial city, Detroit is similar to most urban cities. Detroit's past followed the same developmental history of most American cities, which has a history of immigration, white-flight to suburbs, de-industrialization and redlining. This, coupled with Jim Crow Laws, land deed restrictions, and real estate covenants, help create some of America's most segregated neighborhoods and eventually, blight!
During 1940, the Jim Crow era, many Restricted covenants and segregated policies created a limited supply of decent and affordable housing for rent or purchase. The mortgage industry cooperated with restricting capital availability for financing construction and long-term mortgages to Black Americans. Consequently, demand was high due to many Black Americans migrating from the south to the auto industry in the midwest- Detroit and Chicago. This demand and limited supply created high rents and unobtainable mortgages.
Since 1940, and Before the 1968 riots, Detroit's neighborhoods were segregated, with Blacks relegated to the city center and specific neighborhoods. The value of white homes versus black homes was grossly inequitable. Local policies and Real Estate Agents created this. Similar to most American cities. One of The unfortunate results of these policies and Real Estate agents' actions was the creation of devalued housing for the mass majority of Detroit's Black population. Most significant was the eventual results of de-industrialization and white-flight- Urban Blight. As of 2014, over 80,000 blighted properties counted in the 2014 Detroit's Blight Removal Task Force Plan. Approximately 90% were single-family homes.
Blight is a sign of urban decay and gross inequities and has exacerbated new development in Detroit. Due to Detroit's low property values compared to regional values, Private development has been limited without Public help.
Low property values, coupled with urban blight, are considered financially unfeasible. Additionally, qualified renters and borrowers are limited for renting or purchasing new construction. Unfortunately, the size of the blight and vacant properties exceeds the market demand. Detroit will need a plan that prioritizes neighborhood areas to develop first. However, the purpose of this blog is to suggest a way forward for future development in Detroit.
Hence, I think Detroit's future will lie in its plans and policies that minimize the rapid appreciation of existing and new housing instead, foster plans and policies that keep a stable supply of affordable homes to both Detroit renters and homeowners. In contrast, Gentrification is the outcome of allowing property values to out-paste the average income of residents and creating home values that the residents cannot afford. Only the new residents that have wealth can afford it.
How can we avert this? First, Zoning should increase the current density of each lot. However, the Zoning for the height, setbacks, and land coverage shall remain. This will retain the general character of the neighborhood. Secondly, renovate, design, and build homes priced no more than 20 percent to 25 percent of the average Detroit household's wages. Include rent policies that limit rent increases to the average yearly salaries and inflation, as noted above. This will probably initiate various housing types and legal ownerships coupled with reducing housing space's square footage. Public investments will be necessary in this case.
Examples of the above include allowing single-family units to become duplex or triplexes assuming each unit meets the minimum typical rental unit size, such as a 1,200 Sf single family becoming two 600Sf units within the existing building coverage, height, and setbacks. The neighborhood scale and character remain. Additionally, innovative ownership types shall allow more affordable units that are marketable to all age groups in the Detroit community. This includes rentals, homeownership via single-family, and co-op type legal ownerships.
The suggestions above ensure Detroit's future includes affordability for local citizens by keeping rents and homeownership within the means of average citizens instead of allowing property values to exceed pricing that surpasses 20 to 25 percent of average Detroit household wages. Of course, this will demand Public assistance through zoning changes and financial incentives with Private investments.