During our voyage into homeownership, I've heard a lot of comments about Detroit - many wonderful, true, and encouraging. Some true and discouraging.
Some false, though. Some pretty serious misconceptions about the city have come up. And I'm not an expert, but I've grown up in the metro area, worked in the city on and off for several years now, spent the last seven months looking at homes in different neighborhoods, know and love many Detroiters, and have a somewhat captive audience (that's you, reader! even though I know you're not that captive - thanks for choosing to read on).
So here are some of the myths I've heard mentioned, explicitly or implicitly, during the last several months.
1. Detroit is a wasteland/slum/vacant.
I didn't realize how many people believe that no one really lives in Detroit anymore, or that the only people who live there have no choice, or that all the housing stock there is ruined and terrible. Driving through the city for even a short while will debunk this, so see myth #2.
2. Some areas of Detroit are good, but if you get lost and leave them, you are in trouble.
This is a popular one, in part because it sounds less prejudiced or more knowledgeable, I think. Many areas of Detroit are good. Many are okay but not great. Some are in bad shape, but here's something I want you to read out loud until you believe it:
People visit Detroit every day. Many of them get lost because the city is confusing to navigate. Everyone I know who has ever visited Detroit has gotten lost at some point. I don't know anyone who has been harmed. You probably don't either. You are unlikely to become the exception.
Certainly, some neighborhoods have problems. I'm not suggesting you seek them out and wander them at night alone announcing that you have a lot of cash on you. But readers, you know you probably wouldn't do that in any city. If you mind your own business and are polite, you will find more help than harm. Detroiters are some of the friendliest people in the world, as a general rule (it's true, ask anyone who's been).
3. The neighborhoods that are doing well are where the hipsters have moved in.
Yes, Midtown is at 100% occupancy with waiting lists. Yes, prices have risen in the New Center and Corktown and Downtown. Yes, a lot of hipsters live there.
But you know what other places are doing well? Indian Village. A lot of the Villages, really. Greenacres. University. Palmer. Sherwood. A host of others. You're hearing about the places the hipsters have moved to because it makes a better story - it's news. There are a lot of neighborhoods that maintained very high occupancy rates even during the Recession, though. There are a lot of people who chose to stay because they loved the city, have had their house for 15, 20, 40, 50 years, not because they can't leave but because they don't want to. It's not news that someone stayed in their house because they love it, but it's what has happened. Sure, the hipsters have filled up certain areas, but Detroit was never vacant, and there are great neighborhoods not inhabited primarily by college student hippie young professional art and tech types.
4. Buying property in Detroit right now is a good financial investment.
Honestly, no one knows if this is true. No one ever knows in real estate, but Detroit is a new situation. They had no natural disaster - they had a financial disaster instead. The city does appear to be coming back, but there are a lot of hidden costs to living there. For us, it doesn't make financial sense to move there, not really. We're doing it anyway because we love the neighborhood and are now blessed enough to be able to make decisions not completely based on finances. It's looking like our house may appreciate in value. If it doesn't, as long as we are able to pay it off, we'll be okay. Buying property in the city is definitely not for the faint of heart, and it's not easy money at all. Holding costs and taxes are higher. I'm not telling you not to buy. I bought a house. But the financial payoff isn't guaranteed. Not everywhere in the city is a "hot" market. Neighborhoods aren't casinos. Gambling like they are has consequences. And some of the best places just aren't going to be a good investment because the prices are already much higher and/or the homes don't need flipping.
5. Houses in Detroit all cost $1000 (or $500 or $5000, or some other small number).
Yes, there was a time during the housing crisis when you could calculate the average home price to be under $10,000 if you managed the data a certain way. Yes, there are programs where houses are auctioned starting at small amounts. Like I said, there are a lot of hidden costs - often, the back taxes, very significant renovations, back utility bills, etc. Not all houses are essentially "free" as I've heard some people implicitly believe. Even on a two income salary with one of them a physician's salary (albeit lower for now because my helpmate is a resident) there are a LOT of homes out of our price range. And with the economy improving, you're not going to snap up that move-in ready 5,000 square foot Tudor for $10,000. In a lot of neighborhoods, homes are going for over the listing price.
6. Everyone in Detroit is poor.
I realized people believe this when someone indirectly suggested that people in our new neighborhood make under $15,000 a year. This seems to accompany a lot of the other myths - that people would move out of the city if they could, or at least out of any neighborhood that the hipsters aren't currently living in. Many Detroiters are living in poverty, it's true. Unemployment is unacceptably high, especially for certain populations. Underemployment and stagnant low wages are also deeply problematic. We need to do more to get people employed in good, stable jobs. But many Detroiters are middle and upper class. After all, someone must be living in the homes Rebecca and I can't afford.
7. The schools in Detroit are terrible.
Many are. Yes. I won't deny that. I have worked in several. The school district has many issues. But some of the schools - Renaissance, FLICS, Cass, DSA - produce very talented graduates. A blanket statement that there are no good public schools in Detroit is wrong.
8. Detroit is so much better now that it has Meijer and Whole Foods.
Detroit did and does have food desert areas. The places that these stores have gone in weren't really among them. And the concern that these large chains will put smaller, family-owned stores out of business is not misplaced.
9. You'll leave once you have kids.
If we are blessed to add children to our family, we will talk about it then. It's obviously complicated. But many families do live in the city with children, navigate the school system, and make it work. The type of people that choose to stay in the city or choose to move there are used to facing challenges.
10. You need to do specific things to "flip" your home so that it will have value/attract the "right" buyer.
I've heard a lot of opinions about what kind of floors, counters, backsplash, appliances we should put in. Most are based on current HGTV shows. We aren't flipping this home. This isn't Rehab Addict or one of the other HGTV shows based on real estate investment. We intend to live in this home for a significant amount of time. Trends perceived to be "timeless" now will undoubtedly look dated. Our plan is to put in things we like and deal with selling the home in due time. It's not an investment property, we're not looking to turn it over quickly - it's our home. And the idea of the "right" buyer is fraught with classist and racist undertones. Also, I repeat, neighborhoods are not casinos. We're not gambling here. I have a job. Rebecca has a job. Our income is not based on turning over this property. There's nothing inherently bad about doing that, provided it's done ethically, but it isn't our goal.
In conclusion: I know you didn't all believe all of these. Many of you didn't believe any or most. But these myths come from statements people have made, based on assumptions that some people seem to take as fact. I encourage you, if you haven't and can do so, to visit the city. Not just to attend a sporting event or visit a museum. Take a stroll through one of the neighborhoods. Meet people. You might be surprised.
Some false, though. Some pretty serious misconceptions about the city have come up. And I'm not an expert, but I've grown up in the metro area, worked in the city on and off for several years now, spent the last seven months looking at homes in different neighborhoods, know and love many Detroiters, and have a somewhat captive audience (that's you, reader! even though I know you're not that captive - thanks for choosing to read on).
So here are some of the myths I've heard mentioned, explicitly or implicitly, during the last several months.
1. Detroit is a wasteland/slum/vacant.
I didn't realize how many people believe that no one really lives in Detroit anymore, or that the only people who live there have no choice, or that all the housing stock there is ruined and terrible. Driving through the city for even a short while will debunk this, so see myth #2.
2. Some areas of Detroit are good, but if you get lost and leave them, you are in trouble.
This is a popular one, in part because it sounds less prejudiced or more knowledgeable, I think. Many areas of Detroit are good. Many are okay but not great. Some are in bad shape, but here's something I want you to read out loud until you believe it:
People visit Detroit every day. Many of them get lost because the city is confusing to navigate. Everyone I know who has ever visited Detroit has gotten lost at some point. I don't know anyone who has been harmed. You probably don't either. You are unlikely to become the exception.
Certainly, some neighborhoods have problems. I'm not suggesting you seek them out and wander them at night alone announcing that you have a lot of cash on you. But readers, you know you probably wouldn't do that in any city. If you mind your own business and are polite, you will find more help than harm. Detroiters are some of the friendliest people in the world, as a general rule (it's true, ask anyone who's been).
3. The neighborhoods that are doing well are where the hipsters have moved in.
Yes, Midtown is at 100% occupancy with waiting lists. Yes, prices have risen in the New Center and Corktown and Downtown. Yes, a lot of hipsters live there.
But you know what other places are doing well? Indian Village. A lot of the Villages, really. Greenacres. University. Palmer. Sherwood. A host of others. You're hearing about the places the hipsters have moved to because it makes a better story - it's news. There are a lot of neighborhoods that maintained very high occupancy rates even during the Recession, though. There are a lot of people who chose to stay because they loved the city, have had their house for 15, 20, 40, 50 years, not because they can't leave but because they don't want to. It's not news that someone stayed in their house because they love it, but it's what has happened. Sure, the hipsters have filled up certain areas, but Detroit was never vacant, and there are great neighborhoods not inhabited primarily by college student hippie young professional art and tech types.
4. Buying property in Detroit right now is a good financial investment.
Honestly, no one knows if this is true. No one ever knows in real estate, but Detroit is a new situation. They had no natural disaster - they had a financial disaster instead. The city does appear to be coming back, but there are a lot of hidden costs to living there. For us, it doesn't make financial sense to move there, not really. We're doing it anyway because we love the neighborhood and are now blessed enough to be able to make decisions not completely based on finances. It's looking like our house may appreciate in value. If it doesn't, as long as we are able to pay it off, we'll be okay. Buying property in the city is definitely not for the faint of heart, and it's not easy money at all. Holding costs and taxes are higher. I'm not telling you not to buy. I bought a house. But the financial payoff isn't guaranteed. Not everywhere in the city is a "hot" market. Neighborhoods aren't casinos. Gambling like they are has consequences. And some of the best places just aren't going to be a good investment because the prices are already much higher and/or the homes don't need flipping.
5. Houses in Detroit all cost $1000 (or $500 or $5000, or some other small number).
Yes, there was a time during the housing crisis when you could calculate the average home price to be under $10,000 if you managed the data a certain way. Yes, there are programs where houses are auctioned starting at small amounts. Like I said, there are a lot of hidden costs - often, the back taxes, very significant renovations, back utility bills, etc. Not all houses are essentially "free" as I've heard some people implicitly believe. Even on a two income salary with one of them a physician's salary (albeit lower for now because my helpmate is a resident) there are a LOT of homes out of our price range. And with the economy improving, you're not going to snap up that move-in ready 5,000 square foot Tudor for $10,000. In a lot of neighborhoods, homes are going for over the listing price.
6. Everyone in Detroit is poor.
I realized people believe this when someone indirectly suggested that people in our new neighborhood make under $15,000 a year. This seems to accompany a lot of the other myths - that people would move out of the city if they could, or at least out of any neighborhood that the hipsters aren't currently living in. Many Detroiters are living in poverty, it's true. Unemployment is unacceptably high, especially for certain populations. Underemployment and stagnant low wages are also deeply problematic. We need to do more to get people employed in good, stable jobs. But many Detroiters are middle and upper class. After all, someone must be living in the homes Rebecca and I can't afford.
7. The schools in Detroit are terrible.
Many are. Yes. I won't deny that. I have worked in several. The school district has many issues. But some of the schools - Renaissance, FLICS, Cass, DSA - produce very talented graduates. A blanket statement that there are no good public schools in Detroit is wrong.
8. Detroit is so much better now that it has Meijer and Whole Foods.
Detroit did and does have food desert areas. The places that these stores have gone in weren't really among them. And the concern that these large chains will put smaller, family-owned stores out of business is not misplaced.
9. You'll leave once you have kids.
If we are blessed to add children to our family, we will talk about it then. It's obviously complicated. But many families do live in the city with children, navigate the school system, and make it work. The type of people that choose to stay in the city or choose to move there are used to facing challenges.
10. You need to do specific things to "flip" your home so that it will have value/attract the "right" buyer.
I've heard a lot of opinions about what kind of floors, counters, backsplash, appliances we should put in. Most are based on current HGTV shows. We aren't flipping this home. This isn't Rehab Addict or one of the other HGTV shows based on real estate investment. We intend to live in this home for a significant amount of time. Trends perceived to be "timeless" now will undoubtedly look dated. Our plan is to put in things we like and deal with selling the home in due time. It's not an investment property, we're not looking to turn it over quickly - it's our home. And the idea of the "right" buyer is fraught with classist and racist undertones. Also, I repeat, neighborhoods are not casinos. We're not gambling here. I have a job. Rebecca has a job. Our income is not based on turning over this property. There's nothing inherently bad about doing that, provided it's done ethically, but it isn't our goal.
In conclusion: I know you didn't all believe all of these. Many of you didn't believe any or most. But these myths come from statements people have made, based on assumptions that some people seem to take as fact. I encourage you, if you haven't and can do so, to visit the city. Not just to attend a sporting event or visit a museum. Take a stroll through one of the neighborhoods. Meet people. You might be surprised.
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