POLICYADVISORY GROUP
RESEARCH REPORT
The Detroit Housing Market
Challenges and Innovations for a Path Forward
Erika C. Poethig Joseph Schilling Laurie Goodman Bing Bai James Gastner Rolf Pendall Sameera Fazili March 2017
ABOUT THE URBAN INSTITUTE
The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Copyright © March 2017. Urban Institute. Permission is granted for reproduction of this file, with attribution to the Urban Institute. Cover image by Tim Meko.
Contents
Acknowledgments iv
Executive Summary v
Errata xv
Sustaining a Healthy Housing Market 1
Demand 1
Supply 10
Credit Access 23
What’s Next?
31
Innovations for a Path Forward 32
Foreclosed Inventory Repositioning 34
Home Equity Protection 38
Land Bank Programs 40
Lease-Purchase Agreements 47
Shared Equity Homeownership 51
Targeted Mortgage Loan Products 55
Rental Housing Preservation 59
Targeting Resources 60
Capacity 62
Translating Ideas into Action 64
Core Principles for Supporting Housing Policies and Programs in Detroit 64
A Call for a Collaborative Forum on Housing: The Detroit Housing Compact 66
Notes 70
References 74
The Urban Institute’s Collaboration with JPMorgan Chase
76 Statement of Independence 77