Post-bankruptcy Detroit is a place of undeniable opportunity, and people from all walks of life are eager to make the most of it. Massive tax foreclosures led to a record 24,000 properties being up for auction this fall, pitting residents against speculators for the chance to buy a home on the cheap. Everyone is trying to take advantage, but not everyone’s advantage corresponds with the best interests of the city.
So what is best for the city? It comes down to short versus long-term interests. Renters have shorter-term interests than their landlords and landlords have shorter-term interests that owner-occupants. One who depends on a home to raise their kids in has a different incentive to care for a property than one who sees it as a complement to their investment portfolio. For individuals, homeownership provides security in two major ways: First, by offering shelter, and second by offering stability. For speculators, property ownership provides a low-risk, low-effort form of passive income.
A study by the Journal of Urban Affairs bears this out, showing that in Detroit, the prevalence of rental properties is a strong indicator of neighborhood crime (even more so than blight). The type of benefit a property owner gains from owning a property has a direct correlation to how much the community benefits in response. Continue reading “Taking Advantage of Detroit”