Some cities and states have declined so much that they have become poor places for people to live. These areas usually have a shrinking population, high poverty rates, faltering services, poor school systems and troubling crime rates. Among these is Detroit, which has been in decline for decades. (These are America’s 25 cheapest housing markets.)
MSN recently named Detroit among “Once-Powerful Cities That Now Struggle to Survive.” The report noted, “Some vanish abruptly, but others see their initial break-neck momentum peter out into a long, slow decline.” Detroit falls into the second category.
Parts of Detroit’s downtown near GM’s headquarters, Ford Field, Comerica Park and the MGM Grand Detroit have been rebuilt. Much of the capital for this has come from Dan Gilbert, the board chair of Quicken Loans.
However, a great deal of Detroit remains blighted. A report from the University of Michigan found that 90,000 Detroit residents live in inadequate housing. Detroit’s Demolition Department has razed 3,000 homes, with a target of 8,000, according to CBS Detroit. Parts of Detroit are virtual wastelands.
The car industry’s downsizing started to hit Detroit in the 1950s. From 1948 and 1967, Detroit lost 130,000 manufacturing jobs. Detroit’s population peaked at 1,849,568, according to the 1950 census. By 2022, that figure dropped to 620,376.
According to the Census Bureau, the number of people who live in poverty in Detroit is 31.8% of the total. The median household income is $34,762, which is about half the national average.
According to U.S. News and World Report, the violent crime rate in Detroit was higher than the national average in 2020. The violent crime rate per 100,000 people was 566.2 per 100,000 in 2020. It compares to 252.8 in Chicago.
According to Public School Review, the education results in the Detroit Public Schools Community School District are terrible. The average math proficiency score of 17% compares to the state public school average of 35%. The reading proficiency score of 28% compares to a Michigan score of 48%.
Great School reports that 75% of the schools in Detroit received a below-average rating. Only 5% are rated above average.
No cities in the country with Detroit’s problems have been turned around. Detroit would need to substantially change the population trend, crime, poverty and school systems to do so. If anything, the best that can happen is that the situation will stabilize.
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