Rental housing must receive greater attention for Detroit’s revitalization to be successful. Only 703 homes in Detroit were purchased with mortgages in 2016, up from 557 in 2015[3], figures lower than comparable legacy cities with healthier housing markets such as Cleveland, Ohio and Buffalo, New York. As current housing market trends indicate Detroit will be a city where renters are increasingly important to the future of neighborhoods, it is important to ensure that this shift will have a positive effect on neighborhoods.

The Challenges of Detroit’s Housing Stock

Challenge #1: Detroit’s housing can pose health risks for residents

The age and condition of Detroit’s housing stock has the potential to lead to a range of negative health outcomes, particularly for children.  For example, the use of toxic, lead-based paints was widespread until 1978.  In Detroit, 92 percent of the city’s housing stock was built prior to 1980[4], 50 percent of Detroit renters live in single-family housing that was built prior to 1980[5], and 11 percent of Detroit Renters live in multi-family buildings (2 - 4 units) built prior to 1980[6].

In addition to the health risks these homes pose to residents, there can clearly be other negative effects of poorly-maintained housing.  Some homes become so dilapidated that they become too expensive to renovate and maintain affordability.  While these problems lead to unsafe conditions within the home, the exterior conditions can depress property values in the neighborhood and can lead to blight violations from the City.

Challenge #2: Low-quality, low-cost housing

The low cost of housing across most of the city can also contribute to a range of issues related to the upkeep and maintenance of rental units. Many housing units throughout the city rent at relatively low rates, but are still considered market-rate, and thus do not receive any sort of subsidy.  The low rental rates can lead to deferred maintenance and a lack of investment in these units.  In Detroit, there are only 10,374 Housing Choice Vouchers, 13,313 Low Income Housing Tax Credit units and 4,343 units of public housing.[7]  These units offer residents some security and basic quality standards, however they represent a small portion of Detroit’s housing stock.

Challenge #3: The cost of housing relative to the income of residents

Another challenge that is faced by renters in the city is the cost of housing relative to the income of residents.  Detroit currently has a poverty rate of 40 percent, and 41 percent of households earn less than $20,000 a year.  Even with the low cost of housing in the city, the relatively low income of residents leads to housing affordability issues. Half of Detroit’s renters spend more than 30 percent of their income on housing and, 37 percent of renters are spending more than half of their income on housing.[8]

What Needs To Be Done

For equitable growth to occur in Detroit, there must be an intentional approach on how to develop sustainable and healthy neighborhoods based on their unique strengths and potential –one that includes both homeowners and renters. Unfortunately, there is currently no structure in Detroit to support this new and growing rental market.  

The DFC Implementation Office believes it is critically important to develop a coordinated and regulated system to support tenants, landlords and property managers, both for-profit and non-profit. There is also an opportunity to create an intentional strategy that supports the capacity for middle-income residents to own and rent property, building wealth within the community. A quality support system should consider the following:

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