HOUSING NEWS REPORT
ATTOM DATA SOLUTIONS
DETROIT MEDIAN HOME PRICES
Annual Price Appreciation
Median Home Price
$180K $160K $140K $120K $100K
60.0%
40.0%
20.0%
0.0%
$80K $60K $40K $20K $0
-20.0%
-40.0%
-60.0%
Q1 2000 Q1 2004 Q1 2008 Q1 2012 Q1 2016
shared transportation technologies. That’s where we’re seeing interest from tech companies that want to enter the automotive space. It requires a whole new set of suppliers,” said Justin Robinson, vice president of business attraction at the Detroit Regional Chamber. “The PlanetM Landing Zone is a physical point of entry for the best mobility startup companies to come and do business with the auto industry,” noted Robinson, who added that there is interest from more than just companies in Japan and Germany, but also companies from Israel, Norway, Sweden, the Netherlands and the United Kingdom, all of which are interested in the industry’s autonomous future. FORECLOSURES STILL ‘TAX’ THE CITY Millions of homeowners around the country lost their homes to foreclosures due to mortgage default back when the nation’s real estate market took a nosedive in 2007. Thousands of Detroit
homeowners suffered through the job losses and foreclosures of that time as well. But in addition many local homeowners have lost homes due to unpaid property taxes triggering foreclosures after three years of non-payment. According to a recent study conducted by two professors, between 55 to 85 percent of Detroit properties sold from 2008 to 2015 were assessed above the 50 percent of market value permitted by the Michigan State Constitution in violation of the Headlee Amendment of 1978 and Proposal A which followed it, coming down particularly hard on the lower income population. A total of 6,624 single family homes and condos in the Detroit metropolitan statistical areas were foreclosed on as a result of unpaid taxes in 2017, down 49 percent from 2016, the second consecutive year with a 49 percent decrease, according to ATTOM Data Solutions. Despite the dramatic decrease in Detroit tax foreclosures over the last two years, the metro area still accounted for 45 percent of all residential tax foreclosures nationwide.
Detroit’s Rocky Housing Rebound
planned investment of more than $1.2 billion in the city to develop a live, work and play environment in the CBD. His project, known as The District Detroit, claims to bring residential, commercial and entertainment venues to the table. These projects are part of what is attracting major corporations such as Microsoft and Google to Detroit’s urban core and thus bringing jobs back as well. And Gilbert is spearheading an effort by the city to entice Amazon to select Detroit as the location for its second headquarters known as HQ2. Another key reinvestment of billions of dollars throughout the state has come from the automotive industry, transforming the city’s economy from a manufacturing hub to more of a high-tech center. “Autonomous, connected, electric and
HOUSING NEWS REPORT ARTICLE BY ATTOM DATA SOLUTIONS.
by Peter Miller, Staff Writer, ATTOM Data Solutions
A
seven-year stretch of ranking in the nation’s top 10 metro areas for most foreclosure filings, along with high unemployment and a population exodus during the Great Recession — followed by the largest municipal bankruptcy in U.S. history — took the Motor City into an economic abyss from which it is finally emerging. “What we’re seeing now is a nice mix of urban revitalization and talent attraction,” said Peter Chapman, executive vice president of business
development for the Detroit Economic Growth Corporation. (DEGC). “We have major corporate stakeholders in downtown and the urban core. When you look at cities that are undergoing positive change, one of the things you have to have is family and friends money. That’s the first wave of investment you see like the projects by the Ilitches and Dan Gilbert.” Chapman was referring to Dan Gilbert, chairman and founder of Quicken Loans and Rock Ventures,
and the Ilitch family, founders of Little Caesars Pizza, both key drivers for the revitalization of the city’s central business district (CBD). For his part, Gilbert has reportedly acquired more than 95 underutilized or vacant buildings in the CBD through his real estate company Bedrock, some of which will be converted to mixed-use residential and commercial. As president and CEO of Ilitch Holdings Inc., Christopher Ilitch is doing his part, announcing early last year a
30 | think realty magazine :: march 2018
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