Detroit’s Recovery Leaves A Lot Of People Behind

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By Douglas A. McIntyre Updated Published
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Detroit’s Recovery Leaves A Lot Of People Behind

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The organization Detroit Future City recently published an analysis of the Detroit’s recovery. The report is entitled “139 Square Miles”.  The authors were less optimistic in their assessment of Detroit’s recovery than many local politicians, local residents, and businesses have been

At the conclusion of the report, supported financially by the John S. and James L. Knight Foundation, its authors stated:

Over the past five years there are demonstrable improvements, not only downtown, but in neighborhoods across the city − the return of public services, the installation of 65,000 streetlights, the removal of nearly 12,000 blighted structures, a decrease in the number of vacant housing units, and a decrease in crime. However, it is also clear that there is a long way to go in the city’s revitalization. The decline of Detroit is one that has been well-documented, and occurred over 60 years. It will take some time to reverse a trend that is more than a half century long, but the data prove that Detroit is on its way.

The streetlights are often given as proof of an improvement in the quality of life in Detroit. However, the repairs were made years ago, and can only be counted as the most modest of achievements, although it is an achievement which is still cited constantly. Those who support the recovery of Detroit need to come up with something more impressive.

The report points out that Detroit’s population has dropped by half since 1950, to 672,795. Although the city no longer bleeds people, the drop is both unprecedented in U.S. history and has left a broad range of permanent damage which ranges from an eroded tax base to the fact that there are large parts of the city in which there are essentially no longer residents.

A third of households in Detroit make under $15,000. The poverty rate in Detroit is 40%, and 57% of children live in poverty. The infant mortality rate in Detroit is 14 per 1,000 compared to 9 per 1,000 in the U.S. In Detroit, 18% of residents have diabetes, compared to 9% nationally. Detroit has an HIV infection rate of 800 per 100,000. The national rate is 360.

Detroit’s housing vacancy rate is a staggering 30% which represents 109,788 homes. Many people in Detroit can barely afford their rents. The report points out:

Detroiters face serious issues with the affordability of housing. Fifty-eight percent of renters are cost-burdened, spending more than 30% of their income on housing. Thirty-seven percent of renters spend more than 50% of their income on housing

Even in a city with a relatively low cost of living, many people can barely afford to live.

Detroit’s turnaround is far off. Actually, there are so many challenges, that for it to turn into a viable city may be impossible.

 

 

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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