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As National Homeownership Month comes to a close, we can celebrate the fact that this year it has brought some encouraging news for Detroit advocates, homeowners and potential homeowners.
In keeping with the month, Detroit Future City (DFC) sponsored live and virtual events and released two reports, Home Sales in Detroit and Black Homebuyer Demand, that highlight housing market activity in metro Detroit and provide data to help strengthen the homebuying market, a key indicator of a city’s economic health.
The reports show a rebound in the housing market following the Great Recession of 2008 and an increase in demand from Black homebuyers throughout the region. But the home sale authors also point out that “housing values remain low and the opportunity for Detroiters to build wealth through their homes remains small.”
In other words, there is a great deal of work yet to be done. The in-depth reports are well worth the time to read.
The reports build on DFC’s 2030 plan to grow the city’s Black middle class and improve quality of life in Detroit neighborhood’s, goals that Kresge’s Detroit Program team shares.
Kresge’s place-based approach has allowed us to make deep investments in neighborhood organizations and community leaders to help create the vibrant, amenity-rich locations that potential buyers want to call home. Homeownership demand is increasing and Kresge’s support of the Detroit Strategic Neighborhood Fund (SNF) and catalytic investments at and around the Marygrove campus in northwest Detroit are working and making those neighborhoods some of the most desirable places to buy in the city.
Homeownership can be a viable path to financial independence and wealth creation. Homeownership can expand options in the future if a property appreciates and owners sell and make a profit, or if they leverage home equity to pay for major expenses or fund other property acquisitions. Even when property values are low, homeownership can contribute to financial stability and eliminate the uncertainty and fluctuation in the rental market.
Homeownership helps foster more involvement in community and increases the sense of belonging.
Those are some of the reasons why it is important for practitioners and funders to build on the momentum we see in these new reports. We must foster an environment that encourages entrepreneurship and business ownership among Black residents in particular. We must continue to support sound investment education for everyone, so they can make an informed decision about whether or not homeownership is right for them.
For those who are ready, the recently launched city of Detroit Downpayment Assistance Program (DAP) has the ability to get prospective homebuyers to the closing table. Funded by $6 million in American Rescue Plan Act (ARPA) funding, DAP plays a critical role in addressing historic disparities in access to capital and provides qualifying Detroit households grants of up to $25,000 for a down payment. Funding also can be used for other home purchase-related expenses, including prepaids (such as escrow deposits for property taxes), interest rate buy-downs, closing costs and reduction in principle.
To continue this housing market momentum, housing practitioners suggest we do more to engage youth in the community development process to create an early interest in homeownership and community transformation. Youth may hold the key to growing Black homeownership in Detroit and retaining residents in the long run.
We should also focus on improving the available housing stock, and work to further increase home values across Detroit. On the other side of the ledger, it is imperative that we work to raise Detroiters’ household incomes; among other things, that means ensuring that Detroiters have access to growth occupations via equitable training and employment opportunities.
And we can thank DFC for providing the data to let us know we are moving in the right direction – and how much further we have to go.
Adena Hill is a program officer in Kresge’s Detroit Program. She supports the development and execution of housing, economic security and racial justice strategies and initiatives.
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