The economic turmoil in the city of Detroit has devastated the housing market. Over the years, the conditions of many homes across the city have slowly eroded from dense, stable neighborhoods to blighted, barely-habitable structures. As buildings and neighborhoods have deteriorated, more families have vacated their homes in pursuit of destinations with more opportunity. This has left many architecturally-sound homes that are in good condition, unoccupied due to the “blight” of the surrounding environment.
In order to change the narrative that is taking place with the residential housing market in different Detroit communities, Data Driven Detroit (D3) and LOVELAND joined forces to develop the Motor City Mapping project (MCM), conducting the largest public data collection initiative in the history of Detroit. With the support of Rock Ventures, The Kresge Foundation, The Skillman Foundation, the Michigan State Housing Development Authority, JP Morgan Chase, Michigan Nonprofit Association, and other amazing organizations, D3 hired over 200 Detroit resident surveyors to conduct a parcel by parcel survey of Detroit properties using LOVELAND’S mobile surveying application.
With hard work, diligence, and in the snowiest winter in Detroit’s recorded history, the team collected data from approximately 380,000 structures in Detroit, ranging from the condition of the structure to the occupancy of the structure. The cumulative efforts of the different parties lead to the development and launch of the Motor City Mapping online website which displays a map of the different Detroit properties by neighborhood with an in-depth breakdown of the structures in each community. The goal of the MCM portal was to create a comprehensive database of detailed information including the condition of each and every property of Detroit that would allow policy makers/community organizers to make analytical decision making when it comes to the redevelopment of different Detroit communities.
The research conducted by these different parties is the basis of my PowerBI presentation titled: MCM Residential Property Analysis. Using the 2009 Detroit Residential Parcel Survey (DRPS) dataset (details the information about the residential properties surveyed in 2009) and the 2014 MCM dataset (details the information about same residential properties surveyed in 2009, along with commercial properties), both extracted from Data Driven Detroit, I created visualizations using Microsoft’s PowerBI to compare the changes in residential properties for both years. The objective of this analysis was to determine how the residential housing stock in the city has changed from 2009 to 2014 and to offer some innovative strategies that the city of Detroit could apply to rebuild the housing market.
The visual above displays information comparing the changes in Detroit residential properties from 2009 to 2014. Table 1.1 (Top-Left) shows detailed information about each residential property surveyed in both years, comparing the changes in the housing conditions. Information in this table includes the properties’ address, neighborhood, the property condition 2009, the property condition in 2014, and the whether or not the property has improved, declined, or maintained condition. Table 1.2 (Top-Right) displays the total amount of homes that have maintained, improved, or have declined in condition rating between the initial survey in 2009 and the most recent survey in 2014. According to the data, 190,876 homes have maintained condition, 26,508 homes have declined, and 17,425 homes have improved from 2009 to 2014.
The four graphs on the bottom of this visual display the conditional changes of all the residential properties surveyed from 2009 to 2014. Graph 1.3 (Bottom-Left) shows in 2009, 1,468 homes were suggested for demolition (the worst condition rating) compared to 2014 where 4,042 homes were suggested to be demolished (an increase of 2,574 residential properties). Table 1.4 (2nd from left) shows that in 2009, 5,992 residential properties were in poor condition compared to 2014 where 8041 properties were determined to be in a similar condition (an increase of 2,049 residential properties). Table 1.5 (3rd from left) shows that in 2009, 21,357 homes were determined to be in fair condition compared to 2014 where 27,546 homes were in a similar state (an increase of 6,189 residential properties). Table 1.6 (Bottom-Right) shows that in 2009, 205,996 homes were measured to be in good condition compared to 2014 where 203,992 homes were determined in a similar state (decrease of 2,004 residential properties).
The data from these different charts show that the quality of residential properties has declined since 2009. More homes have declined than have improved since 2009, showing (as most Detroiters know) that there is much more to accomplish in order to improve the housing market. One of the biggest statistics that jumps out to me is the increase of homes suggested for demolition from 2009 to 2014. The number of homes basically tripled in this housing condition state, showing the severity of the housing decline from 2009 to 2014.
The second visual posted above displays more information from the MCM data, with a detailed focus on residential properties by neighborhood. Table 2.1 (Top-Left) is a slicer tool that contains the different neighborhoods surveyed in the MCM dataset. When selecting a checkbox (or checkboxes) for the displayed neighborhoods, the information in the other tables related to the selected neighborhoods are highlighted. Below is an example of using this tool when selecting the neighborhoods Conner, Denby, and Tireman (To reference the Master Plan Neighborhoods mentioned in this dataset, click here).
Table 2.2 (second from left) is a treemap that displays the number of properties that have declined in condition by neighborhood. The five neighborhoods where the most residential properties declined were:
- Tireman (1,417)
- Conner (1,274)
- Mt. Olivet (1,254)
- Mackenzie (1,167)
- Harmony Village (1,105).
Table 2.3 (Top-Right) shows the number of residential properties that are in poor and suggest demolition conditions by neighborhood. The five neighborhoods with the most homes in these conditions were:
- Tireman (806)
- Conner (696)
- Davison (534)
- Chadsey (485)
- Brighmoor (463)
Table 2.3 (Bottom-Left) shows the number of unoccupied homes by neighborhood in 2014. This table includes the name of the different neighborhoods and the number of structures unoccupied by number of housing units. This table could be used to build neighborhood redevelopment strategies based on the number of unoccupied residential units. For example, there are large amounts of unoccupied single unit homes in nearly all of the surveyed neighborhoods, which would be ideal for young couples and single parent families. To attract individuals to live in these neighborhoods, strategies should be implemented to make these particular neighborhoods more attractive to small families including making these homes more affordable, as well as injecting these communities with after-hour establishments for the entertainment of young couples, parks/community centers for parents to take their children, and other institutions.
Table 2.4 (Bottom-Middle) displays details about the different homes that have fire damage according to the 2014 survey. This table includes the property’s address, zip code, unit type, neighborhood, and the current condition of the property. Table 2.5 (Bottom-right) shows information on the number of homes that needed boarding by neighborhood in 2014. The five communities that have the most properties in need of boarding were:
- Conner (1,617)
- Tireman (1,428)
- Mackenzie (1,248)
- Burbank (1,195)
- Mt. Olivet (1,163)
The tables presented in this visual show the Detroit neighborhoods that should be focal points when it comes rebuilding the residential housing market in the Motor City based on the declining conditions of residential properties. The common trend I see in three of the five tables is with the neighborhoods of Conner and Tireman. These two communities have the highest number of declining residential properties, the most residential properties in poor/suggested demolition condition, and the largest number of residential properties that need boarding. These are definitely two communities where additional intervention is required.
One program that generates great optimism in regards to the Detroit residential housing market is the Detroit Neighborhood Initiative. Established by the Neighborhood Assistance Corporation of America (NACA), Bank of America, Opportunity Resource Fund, and the City of Detroit, this outstanding collaborative makes home ownership a reality through the creation of a remarkable mortgage program designed to make residential housing more affordable for prospective Detroit homeowners. I believe this initiative will have a profound impact on the Detroit housing market. This program offers the following benefits to citizens that sign-up:
- No down payment
- No closing costs
- No fees
- Below market fixed rates (3.5% – 30 year / 2.875% – 15 year)
- 30 year – One percent of mortgage permanently reduces rate by .25% to virtually zero
- 15 year – One percent of mortgage permanently reduces rate by .50% to virtually zero
- Available on all property types: new, existing, single to four families, condo
- RENOVATION FUNDING INCLUDED IN MORTGAGE
- Credit Score never considered in mortgage process
- Homebuyers individual payment history utilized
- Underwriting done by NACA
Including renovation funding in the mortgage will play a huge role in improving the quality of housing in the Detroit area. Before the creation of this program, obtaining renovation funding to improve housing was a huge barrier for prospective homeowners. Mortgages can only be issued for the appraised value of a house, but due to the low values of residential sales ($10,000, for example), individuals are unable to finance renovations when buying a house as costs exceed $50,000 in some cases. Including renovation funding with the Detroit Neighborhood Initiative bypasses this barrier giving prospective homeowners the power to invest in the homes they desire to purchase while sequentially rebuilding the residential housing market through the renovation funding poured into the property.
Pairing the MCM dataset with the Detroit Neighborhood Initiative would be a great strategy to track home improvement and to also formulate blueprints toward rebuilding the residential housing market. Knowing the communities with deteriorating residential properties along with the specific details about the infrastructure of each property would give more insight to urban planners and community advocates looking to strengthen community stability. While other strategies and efforts must be ignited to help improve housing in Detroit, the Motor City Mapping dataset, and Detroit Neighborhood initiative serve as two beacons of hope for restoring Detroit’s residential housing market.
To view and interact with the MCM PowerBI visualization, click here.
Tags: Bank of America, Chicago, City of Detroit, Data Driven Detroit, Detroit, Detroit Neighborhood Initiative, Detroit Residential Parcel Survey, Ivoire Morrell, JP Morgan Chase, Loveland, Michigan, Michigan Nonprofit Association, Microsoft, Microsoft Chicago, Motor City Mapping, Neighborhood Assistance Corporation of America (NACA), Opportunity Resource Fund, PowerBI, Rock Ventures, The Kresge Foundation, the Michigan State Housing Development Authority, The Skillman Foundation