Reviving the Rustbelt: Detroit’s Road to Recovery

Blog posted On November 09, 2016

According to recent reports, there are still about 30,000 vacant homes and buildings in the Detroit metropolitan area.  The former manufacturing hub was hit hard by job loss and the foreclosure crisis.  However, a union-led construction program is reviving Detroit’s housing market and creating as many as 25,000 jobs including 9,700 permanent and temporary construction jobs.  

Population loss across the Midwest is due in part to a substantial manufacturing job decline.  New union-led efforts put local residents to work rebuilding their own aging neighborhoods and communities.  Governor Rick Snyder, of Michigan, voiced his support for the project, stating, “the creation of new skilled-trade jobs will build on the success of Michigan’s economy and sustain skilled talent for the future.”

Instead of demolishing rundown homes, rebuilding and rehabbing helps drive up the property value for the entire neighborhood.  Residential construction has declined because of a loss of construction jobs.  The rebuilding efforts create local construction jobs, stimulating the economy and keeping construction costs down.

Local residents are seeing the value of rebuilding the community.  One 85-year-old retired auto sales worker said, “it will be a good investment for the people coming into the neighborhood.  It’s a stable community, and it’s going to be that way if the rest of us are able to keep our properties.”

Funded by the AFL-CIO Housing Investment Trust’s MidWest@Work Investment strategy, the program is expanding to eight more cities including Minneapolis, St. Louis, St. Paul, Cleveland, Columbus, Milwaukee, Buffalo, and Pittsburgh.  Approximately 90 construction projects are planned over the next five to seven years including 60 multifamily housing units.  The goal of the initiative is to prevent more homes from falling into disrepair and generate local construction jobs.    

Sources: HousingWire, AP, Reuters