housing

Religion
2:16 pm
Sat December 31, 2011

Detroit church builds homes to build community

(file photo)
(photo by Steve Carmody/Michigan Radio)

A church on Detroit's west side has become a community developer by building 90 homes over four years and injecting pride and optimism in the neighborhood.

The last batch of new tenants moved in this month. The Rev. Oscar King III says stable housing is crucial if Detroit wants to recover. The homes are near his Northwest Unity Baptist Church.

The Detroit Free Press says there were more than 800 applicants for the homes, mostly two-story colonials. The renters include professionals, low-income families and even the homeless. Jack Bostic Jr. says homes are more important than a church having a fancy place to worship. He says his neighborhood looks like any suburb.

Janet Norfleet says her children pick up trash on their block, a habit that others are following.

Homelessness
1:17 pm
Sun December 4, 2011

10-year project aims to end homelessness

Verne Barry Place provides apartments for homeless people with special needs in Grand Rapids
Campaign to End Homelessness website

The state is half-way through a ten year project called Michigan’s Campaign to End Homelessness. The project focuses on “housing first” or “rapid re-housing.” (That means reducing the amount of time people spend in shelters and trying to quickly find them permanent housing.)

Last year the state helped 40,000 people find stable housing.

Janet Irrer is the state’s homeless programs manager. She says housing first is a more humane way to help people make changes in their lives.

“You can’t deal with life in a shelter,” she says. “You can’t reach self-sufficiency there.”

The state is required to focus on housing first programs in order to get federal funding. Irrer says housing first programs are less expensive to run and help the state save money.

Changing Gears
9:06 am
Wed November 2, 2011

Empty Series: The economic and social cost of emptiness (Part 1)

It's been estimated that 27 percent of the buildings in Detroit are vacant. Some experts say that figure has been improving of late.
Tim Beckett Flickr

This week, Changing Gears kicks off a look at Empty across our region. During November, we’ll be looking at empty buildings, empty property — and how we can fill things up again.

In the first part of our series, I explore the economic and social cost of emptiness.

Things may be better in some neighborhoods, but problems still abound.

The numbers

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Economy
2:47 pm
Mon October 17, 2011

Boost in September home sales in Metro Detroit

Metro Detroit saw a boost in the number of home sales and home prices last month.

The Detroit Free Press reports the September increase came from an active summer selling season:

Sales rose 8.2% in September from 4,222 to 4,568 in metro Detroit, according to Farmington Hills-based multiple listing service Realcomp. The data includes sales from Livingston, Macomb, Oakland and Wayne counties.

Median prices rose 10% from $68,000 last month to $74,900.

Michigan Radio's Steve Carmody reported earlier this month about positive home sale numbers around the state, but housing analyst Alex Villacorta with Clear Capitol expected a decline this winter.

Environment
3:35 pm
Fri October 7, 2011

Green building conference: standing out from the crowd

The U.S. Green Building Council’s annual conference was held in Toronto this week.  “Greenbuild 2011” was four days of seminars, classes, and discussions about how to construct buildings and homes, using more environmentally friendly methods. 

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Economy
1:01 am
Thu October 6, 2011

Report: Home sale prices rise in Michigan (but is a fall coming this winter?)

(photo by Steve Carmody/Michigan Radio)

Michigan home sale prices increased significantly during the past three months. But according to a new report, prices are predicted to take another tumble. 

Michigan home sale prices are down dramatically from their pre-recession highs. However, a new report from Clear Capitol says Michigan home buyers have been paying more in recent months.

“Michigan overall is actually up even more so than the Midwest region. We have them up 8.5 percent on a quarter over quarter basis.  But still down six percent from where prices were a year ago," says Alex Villacorta with Clear Capitol. 

But Villacorta says home sale prices nationally appear to have plateaued and he expects they will decline about 3 percent this winter and even more in Michigan, which he says is more volatile than the national housing market.  

Villacorta says Detroit’s housing market continues to struggle and remains one of the lowest performing home sales markets in the country. He blames this on the fact that one in every three homes on the market has been repossessed by banks that are now trying to sell them at far below market prices.

Economy
5:01 am
Thu September 15, 2011

Big jump in home foreclosure filings in Michigan last month

(photo by Steve Carmody/Michigan Radio)

 August saw a big leap in the number of new home foreclosure filings in Michigan.   

2011 was expected to be a record year for home foreclosures in Michigan, but it didn’t happen.  Foreclosure filings slowed at the beginning of the year, as banks scrambled to fix paperwork problems and respond to new government regulations.  But it appears now the tide is turning.  

New home foreclosure filings jumped 36 percent from July to August in Michigan.  

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Economy
6:00 am
Tue September 6, 2011

Cash incentives have "absorbed" a lot of housing stock in midtown Detroit

Detroit skyline
user Bernt Rostad Flickr

Three Detroit businesses earlier this year began to offer up to $25,000 to encourage their employees to buy a place to live in Midtown Detroit. But the "Live Midtown" incentives have created a new kind of housing crisis in the city: a housing shortage. 

Austin Black is a realtor with City Living Detroit in midtown. He says in 2007 - 2008, the area was flush with unsold units. But he says now many of his clients have become frustrated looking for housing in the area.

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Housing
1:00 pm
Tue August 30, 2011

Home prices up slightly nationally, but still down in Detroit

A graph showing the annual percent change in home prices from 1998 through the middle of 2011. See the bubble bursting?
S&P/Case-Shiller Home Price Indices

Data released today by the S&P/Case-Shiller Home Price Indices show that through June, home prices nationally were back to their early 2003 levels.

But home prices in Detroit were at pre-2000 levels. The Detroit market was down 6.6 percent when compared to the previous year.

That put's Detroit in a bad category along with some "sunbelt" cities, according to S&P/Case-Shiller:

At the other extreme, those which set new lows in 2011 include the four Sunbelt cities – Las Vegas, Miami, Phoenix and Tampa – as well as the weakest of all, Detroit. These shifts suggest that we are back to regional housing markets, rather than a national housing market where everything rose and fell together.

The Detroit Free Press quoted a statement from Patrick Newport, a U.S. economist with IHS Global Insight:

"Detroit, where prices have dropped nearly 50% since peaking in late 2005, remains, by far, the weakest market,” he said. “Detroit avoided a big run-up in housing prices during the boom years, but was hit hard by the recession."

Economy
5:01 am
Thu August 25, 2011

Foreclosures & short selling pulling down Michigan home sale prices

(photo by Steve Carmody/Michigan Radio)

Michigan home prices are still sliding thanks to banks selling foreclosed homes and short-selling others. Realty Trac reports 40 percent of all home sales in Michigan between April and June involved banks either selling foreclosed homes or short-selling other homes that were on the verge of being repossessed. That percentage is up slightly from the beginning of the year and the same time last year. 

Daren Bloomquist is with Realty Trac. He says the banks sold the homes at about a 40 percent discount. 

“We’re seeing the prices come lower and the discounts go higher, which is good news for buyers.  And it does indicate that the lenders maybe more willing to take a bigger loss on these properties in order to get them sold.”

Bloomquist expects repossessed homes will continue to be a drag on Michigan’s housing market for the next few years.

Six Word Story
2:59 pm
Wed August 24, 2011

Your housing stories, in six words

Ray Gauss II flickr

Changing Gears is kicking off a new feature. Inspired by Smith Magazine, and possibly Ernest Hemingway, we're asking people to share stories of what the economic transformation of the industrial Midwest means to them. But there's a catch. We want these stories in six words.

Listen to the result of our request for stories about the housing crisis. Take Mary Mary Beth Matthew's submission for example, "2007 bought ex's half, 2011 underwater." Set to music, it's creative, poignant, and even funny.

You can also contribute to our current six word story-your "Plan B."

Six-word poets: Marcus Bales, Amanda Thomas, Becky McRae, Matt Lechel, Christopher Lada, Manuel Magana, and LaGaspa McDougal.

Music by Steve Osburn, produced by Cade Sperling.

Changing Gears
11:32 am
Wed August 24, 2011

Foreclosures decline, while foreclosure businesses thrive

Frank Oliver clears out a foreclosed home in Roseville, Michigan.
Kate Davidson Changing Gears

Foreclosure activity dropped by more than a third this past year, according to the group RealtyTrac. But despite the national slowdown, regional companies that take care of foreclosed homes are still thriving. Their job is to keep empty houses clean and safe from the forces that depress local property values: squatters, thieves and decay.

Dawn Hammontree probably never expected to see their work firsthand.

The first part of Hammontree’s story is familiar in Michigan. Her unemployment ran out in December.

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Economy
11:10 am
Fri August 19, 2011

Group seeks to create Detroit Jewish neighborhood

The Ellington Lofts in Midtown Detroit. The AP reports a rent program is aimed at bringing young Jewish professionals back to Detroit's Midtown area or to the downtown area.
user dig downtown detroit Flickr

DETROIT (AP) - A group of young Jewish professionals attracted to the vitality of Detroit's evolving downtown wants to bring others into the city decades after their parents and grandparents left.

CommunityNEXT Director Jordan Wolfe says the 25 people targeted through a rent program would help return Jewish culture to Detroit and contribute to the city's revitalization.

Subsidies of $250 per month for a year will be offered. Wolfe says he is seeking to bring in people "who get a kick out of building a community."

The rent program piggybacks offers major corporations and businesses are making to entice their employees to relocate downtown or to Detroit's growing Midtown area.

A dodgeball tournament fundraiser is scheduled for Saturday in Detroit and will be followed Sunday by a kickball tournament in Los Angeles.

Economy
5:00 pm
Wed July 20, 2011

Oakland County: Fannie, Freddie dodging taxes

Oakland County Treasurer Andrew Meisner says homes like this one, sold in foreclosure by Fannie Mae and Freddie Mac, are costing the state millions in lost tax revenues.
Sarah Hulett Michigan Radio

There’s a David-and-Goliath story about to play out in federal court in Detroit.

Oakland County Treasurer Andrew Meisner says Fannie Mae and Freddie Mac are illegally dodging millions of dollars in taxes. The government-backed mortgage giants were created by the federal government, but they were spun off decades ago as hybrid enterprises with a policy mission and a profit motive. 

Just where Fannie and Freddie sit on the public-private spectrum is the central issue of the court case. And the court fight could be a bellwether for similar battles in other states. 

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Economy
1:01 am
Thu July 14, 2011

Home foreclosure filings down (and that's a problem?)

(photo by Steve Carmody/Michigan Radio)

The number of home foreclosures tumbled in Michigan during the first half of the year. One analyst says that’s bad news.  

Realty Trac reports that home foreclosure filings dropped by about 20 percent during the first six months of 2011. One in 74 homes in Michigan received a foreclosure notice between January and June. 

Rick Sharga is with Realty Trac. He says continuing questions about problems with foreclosure paperwork has slowed down the number of properties being repossessed by banks. Federal and state regulators are expected to announce a deal soon clearing major lenders from intentional wrongdoing involving faulty paperwork that mistakenly evicted people current on their mortgages. 

Sharga says the delay in foreclosure filings has slowed the recovery in Michigan’s real estate market. 

 “What over 60% of buyers are looking for right now are bank owned properties or foreclosure properties.   So it might be a little of a ‘Catch-22’ here…where we need a higher inventory of these distressed properties to get the buyers off the sidelines.”  

Sharga says it may take until 2015 to clear the huge backlog of homes in the foreclosure process which will continue to be a drag on the home sale market.

Economy
2:15 pm
Fri June 10, 2011

It takes a village... and $226,920 to raise a child

Every year, the U.S. Department of Agriculture releases its estimate of how much it costs to raise a child from birth to seventeen years of age.

Here's what they found for their latest Expenditures on Children by Families report:

A middle-income family with a child born in 2010 can expect to spend about $226,920 ($286,860 if projected inflation costs are factored in) for food, shelter, and other necessities to raise that child over the next 17 years.

It represents a 2% increase from 2009, and the report also notes that, naturally, the more money you make, the more you spend on your child:

  • A family earning less than $57,600 per year can expect to spend a total of $163,440 (in 2010 dollars) on a child from birth through high school.
  • Similarly, parents with an income between $57,600 and $99,730 can expect to spend $226,920;
  • and a family earning more than $99,730 can expect to spend $377,040.

Housing accounts for 31% of the cost for raising a child for a family with a middle income.

The USDA first released this report in 1960 when a middle-income family could have expected to spend $25,230 to raise a child (or $185,856 in 2010 dollars).

Economy
1:01 am
Thu June 9, 2011

Home sale prices may be stabilizing (but not in Detroit)

But at what price?
(photo by Steve Carmody/Michigan Radio)

There's positive news about the nation's home prices, but that's not  the case in Detroit.  Data released by Clear Capital today suggests home sale prices nationally may be stabilizing.  Home prices lost ground through the winter months, and the latest data shows prices dropped by 2.3% in May.  

But the good news is prices being paid for repossessed homes nationally actually increased last month.   Foreclosed homes have been dragging down home sale prices, but that might be changing. 

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Economy
1:01 am
Thu May 26, 2011

Foreclosed homes weighing down Michigan real estate market

Foreclosed homes continued to drag down Michigan home sale prices in the first quarter of the year.  Realty Trac reports nearly 32% of  homes sold in Michigan in the first three months of 2011 were repossessed homes.   

The average price for a foreclosed home was just a little more than $70 thousand.   The price is about a third less than similar homes on the market.  

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Economy
2:02 pm
Thu May 19, 2011

Two minimum wage incomes needed to purchase a home

 A Michigan family needs two people working full-time at minimum wage in order to afford a modest home. That’s according to a report by the National Low Income Housing Coalition. The report says, the cost of housing has risen 27% in Michigan over 11 years, but wages have not increased.

Danilo Pelletiere is with the housing coalition. He says the gap between housing prices and wages has become a problem in the state.

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Economy
1:01 am
Thu May 12, 2011

Michigan's foreclosure process slows down

(photo by Steve Carmody/Michigan Radio)

Michigan mortgage lenders are taking longer to foreclose on delinquent homeowners.  In 2007, the entire foreclosure process in Michigan took on average 78 days to complete.   This year, the average foreclosure is taking 235 days to complete.  The reason is a mixture of the economy and paperwork. 

According to Realty Trac, this is not just a Michigan issue:

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