The truth behind Detroit’s shocking housing crisis
- May 24 2018
- BY katie
As home prices soar across the United States, particularly on the coasts, Detroit remains the poster child for the economic crises and housing collapse of a decade ago.
The city’s bankruptcy filing in 2013 hollowed out what was left of its once large, middle class African American community and over the past decade there have been more than 150,000 home foreclosures here.
Boarded up homes and burned out shells litter the landscape. Today, a house can be bought here for the price of a used car.
And yet it is difficult for buyers to actually buy. Prices are too low for lenders (who see the deals as too small or too risky) and too high for buyers who are cash-poor and don’t have the money to fix them up.
Bank of America and JPMorgan Chase, the country’s two largest banks, trace their roots back decades when they helped finance the city’s once booming auto industry. They have pledged to help resuscitate the crippled housing market.
So guess how many home mortgage loans these enormous banks made in 2016 to this city of city of 640,000 people?
Bank of America made just 18.
JPMorgan did just six.
So these places remain, just like this, in America in 2018, opposite houses where good families are trying to make a life for their children, and a build a place that they hope to be proud to call home.
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