Greening Foreclosures: Buy a Home in Detroit for $40
Along with the rest of the country suffering from the mortgage crisis, Detroit has seen more than its fair share of foreclosures. Coupled with a failing American auto industry, the Motor City has been hit hard by the current recession. The national rate for home foreclosures is one in 300, yet Detroit has the highest home foreclosure rate in the country. Since 2000, Detroit has lost over 150,000 jobs to downsizing in the auto parts and auto industry. Michigan also has the highest percentage of subprime mortgages in the US, and the state suffers from the highest unemployment rate in the union.
So how much does a foreclosed home in Detroit cost? Two weeks ago, you could buy a home for $1 in the city. Today the lowest price I could find was $40.
That’s right, you can buy a bank owned home in Detroit for only $40.
Of course, homes for these low prices may have fire damage or boarded up windows, but it is still a house sitting on a lot.
Another shocking statistic from Detroit is that the average price of a home is almost equitable to a year’s worth of auto insurance. According to the Macomb Daily:
Because the neighborhoods and housing stock in the city have deteriorated so dramatically, the median sale price for a foreclosed home in Detroit has dipped to $7,750. At the same time, auto theft, insurance fraud and vehicle burglaries are so rampant that the average car insurance policy carries a price tag of $5,072.
The city’s morale has dipped so low that only 14 percent of voters turned out for the big mayoral election in February, and two-thirds of children drop out of high school. What could we do to boost moral in Detroit? We could buy up foreclosed homes and lots and turn them into green urban spaces.
By turning foreclosed homes into nature preserves and parks, Detroit could undergo a green urban renewal that would mitigate environmental damage the auto industry has done and improve the health of its citizens. Recent studies have also shown how inner city children that grow up in neighborhoods full of green spaces grow up healthier and happier:
This study’s findings align with previous research linking exposure to green landscapes with health improvements. Among adults, greenness is associated with less stress and lower [body mass index], improved self-reported health and shorter post-operative recovery periods. Among children and youth, the positive health effects of green landscapes include improved cognitive functioning and reduced attention deficit hyperactivity disorder symptoms.
Another study has shown that crime rates go up in cities when the landscape is barren of nature.
Turning foreclosed homes into parks, wildlife sanctuaries, and urban gardens could be just what the Motor City needs to revitalize itself. Considering the price of these foreclosed homes, it would be affordable for any grassroots organization to undertake. I volunteer to buy a home and donate to any group willing to take on this challenge.
Image: Realtor.com
i wish i understood this. id buy a house at this price for a nonprofit.
im commenting so i can be informed if such a group forms or someone can explain whats happening better.
sounds like a too good to be true bargain.
It cost money to have the home demolished, my guess would be $3-5000. Then is is succeptable to having trash dumped on it for which you would be responsible to clean up. Then if some kid builds a scateboard ramp and gets hurt, or cooks meth, you are responsible for creating a constructive nuisance and clean up.
Very kind of you Jennifer to offer $40.00 to purchase a house. Would you please donate the $8,000.00 necessary to demolish the house.
Yes, demolition costs would be large, but my point was to think of the possibilities for green urban renewal.
I love that idea of taking foreclosed homes, buying the property, and converting it to vegetable gardens and other green spaces. The improvement in physical health, the enjoyment and mental health of growing something good to eat and beautiful to see, would be welcomed by me in New York City… but that is not happening yet here in NYC. Maybe Detroit could get lucky for once and lead a new trend.
Not that I am against more green space- but something to think about when tearing down buildings is the loss of historic value. It would be a shame to loose structures with unique architecture simply because for a brief moment the city fell on hard times… I don’t know if Detroit can afford to loose all of its soul in some reinvention.
If the picture accompanying the article has anything to do with the kind of houses that can be bought for $40, nothing much is lost.
Plots in this type of neighborhoods may not be that suitable for parks, but could be great as a place to grow organic vegetables. Doing that could pay for the demolition costs and at the same time create new jobs for some of the many unemployed.
Using an opportunity like this and applying some “outside the box” thinking could bring up great new solutions.
So you will buy a house and grow trees? Will you then pay the yearly property tax that is a ransom paid to the government so that your property won’t be seized?
Will you defend yourself in court 10 times per year when you are sued because someone tripped and fell on your property?
$40 = $250,000.
Hmmmmm
And here I was thinking,,,,,, Thieves sucked the life out of a lot of people,,, took their homes away from them,,,, for want of $40.00 Humanity at it’s finest
Exactly! Humanity at its finest and even the worst. You should guys continue blogging and fight against recession