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Shrinking Detroit Gets Underway

Posted May 29, 2010 by Matthew Denton

It could take much bigger changes than expected

Just this March, I’ve written about Motown’s planned transition from overnight recession ghost town into a farmland. I was concerned about the urban planning that they’re going to implement but after checking the city’s proposal, I realized that it’s going to be one massive project. There’s nothing wrong about this except that it’s a double-edged sword. Considering that a third of the city’s residential parcels are either vacant lots or abandoned homes, there’s definitely a lot of work ahead of them.

One person who shares the same sentiment is Robert Boyle , professor of urban planning at Wayne State University, when he writes, “We may indeed see a Gratiot forest, a new Hubbard farm or Chene village, and more. But what matters as much as individual ideas, perhaps more, is a vision for the city as a whole. Sustainable, in the full sense of the word.”

So here’s where a forest will be built. But look who’s going to get the first shock. Former presidential contender and former Massachusetts governor Mitt Romney is saying goodbye to his childhood home in Detroit. According to the Wall Street Journal , “The house was owned by Mr. Romney’s parents, George and Lenore Romney, from 1941 until 1953, when the family moved to the northern suburbs…As recently as 2002, the house sold for $645,000. But it has had a troubled history since then, lapsing into foreclosure more than once, bouncing between lenders and falling into disrepair. Last year, following years of complaints from neighbors, Wayne County declared it “a public nuisance and blight” and ordered it demolished. The younger Mr. Romney, who is considered a leading GOP presidential candidate for 2012, said ‘it’s sad’ that his childhood home is being razed, ‘but sadder still to consider what has happened to the city of Detroit, which has been left hollow by fleeing jobs and liberal social policies.’”

Romney obviously can’t do anything about it considering the plunge in his home equity is upsetting enough. If they’re no takers, then it’s better off for Mayor Dave Bing to knock off the house and shrink the total residential area that matches its dwindling population too. But when it’s all over, expect the 90,000 vacant homes on 40 square miles to still wait for buyers in a city that should be rescued from the distressed economy.

But here’s another suggestion from Darrell Dawsey of Time Magazine : “a more concentrated populace should allow for a more efficient deployment of city services. I’d imagine we could also save some sorely needed dollars by not having to provide regular power and police and fire services to the fenced-off areas. And, as one of my best friends pointed out recently when he was championing this idea, by sealing off vacant areas, we create a type of land scarcity that gives greater value to the remaining parcels that can be developed. If/when more people returned to the city, we could re-open fenced off sections as needed.”

I think this is a smart recommendation but it’ll take a long time for a re-opening to successfully occur. What do you think about this?

Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.

City in Focus: Des Moines, Iowa

Posted May 25, 2010 by Matthew Denton

Business and career options are plenty

You know you’re living in a city with brighter prospects than anywhere else if a credible publication puts your area in the top spot for its annual Best Places for Business and Careers list. That’s just what happened to Des Moines, Iowa which jumped from seventh position a year ago in Forbes Magazine’s 12th consecutive tally. Middle America has gained ground after once top spots for commerce flunked out in the midst of the recession. According to the report , “The top of this year’s list is filled with cities in so-called flyover states, areas with reasonable business costs, strong economic outlooks and a solid quality of life.”
Iowa’s capitol city is definitely a strong contender considering that it has remained one of the best places for business activity and cultural affairs. The magazine explains, “(It) has 562,000 people in the metro area and features business costs 15% below the national average (living costs are 10% below the national average). It has an educated labor supply as 33% of adults have college degrees (ranking 46th among the 200 largest metros) and 92% possess high school diplomas (ranks 19th)… The economic outlook is bright in Des Moines as well. Employment is expected to increase at a 2.7% annual clip over the next three years, 10th best in the country. Meanwhile, household incomes are projected to rise 2.9%, which ranks 11th.”
There are indeed many career opportunities in Des Moines. Leading corporate offices are insurance companies such as Principal Life Insurance Company, Seabury and Smith (Marsh), Nationwide (Allied) Insurance, Holmes Murphy, American Republic Insurance Company, EMC Insurance, ING Financial and Wells Fargo Financial – one of the largest employers in the area.
Other companies that are contributors to the burgeoning economic landscape are United Parcel Service, Wyeth, Younkers Department Stores, Deere & Company and CDS Global. Of course, recession-proof health-related businesses abound in the city too with Iowa Health Systems, McFarland Clinic, Mercy Hospital Medical Center, and the Mary Greeley Medical Center.
Finally, the city is home to the World Food Prize – “the foremost international award recognizing the achievements in advancing human development by improving the quality, quantity or availability of food in the world.”
And how about prospects for housing? Forbes states, “Housing is affordable with a median home price of just $149,000, one-quarter the price of a home in the San Francisco area. Commute times, according to the Census Bureau, average 19.8 minutes, one of the fastest in the U.S.” The city’s Office of Economic Development states that in 2007, the median home price was just $107,000.
Homebuyers have wide interesting choices on where to settle. I personally recommend two prime areas. First, Windsor Heights is just right for career-oriented professionals since it’s located right at the heart of Des Moines. Its official website describes the city as having “a distinctive niche as a quality small community within the state’s major metropolitan area. It is unmatched in its strategic location, convenient to all of the metropolitan and suburban amenities while offering affordable housing, business opportunities and a strong sense of community.”
If you wish to live farther, in north of Des Moines, Johnston’s affordable communities can suit you best. It has just completed a watershed assessment and stormwater management plan in the hopes of improving community development services in the area. It’s even crafting a framework to help improve the city by the year 2030.
Online house shopping for affordable properties and high-end homes in Des Moines and other urban areas in Iowa can be easily accessed in our properties section . For updates on mortgage rates and lenders in Iowa and elsewhere, Realty.com’s Iowa mortgage rates is a complete resource for up to the hour mortgage rates.

Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.