Saving Strong Neighborhoods From the Destruction of Mortgage Foreclosures: The Impact of Community-Based Efforts in Detroit, Michigan

Lan Deng, Eric Seymour, Margaret Dewar, June Manning Thomas

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

Mortgage foreclosures hit Detroit, Michigan hard between 2005 and 2014, especially in what we define as strong neighborhoods; there, more than one third of homes experienced foreclosure. Before the crisis hit, these selected tracts had largely intact physical environments and higher owner occupancy, household income and property value than the citywide median. In some of them residents worked intensely to abate the neighborhood effects of mortgage foreclosures. This study examines those efforts’ effectiveness. We selected neighborhoods with the most extensive efforts, as measured, for instance, by creation of community-based plans and applications for grants, and we conducted interviews and field observations to examine those efforts. To assess strengthening of neighborhood housing markets, we applied a modified adjusted interrupted time-series approach to evaluate changes in prices as one measure of neighborhood change. We found that strong resident initiative supported by community development organizations and external assistance led to increased neighborhood housing prices, compared with comparable neighborhoods. However, when initiative, context, and support were weaker, community-based efforts could not prevent considerable decline.

Original languageEnglish (US)
Pages (from-to)153-179
Number of pages27
JournalHousing Policy Debate
Volume28
Issue number2
DOIs
StatePublished - Mar 4 2018
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Development
  • Urban Studies
  • Management, Monitoring, Policy and Law

Keywords

  • Mortgage foreclosures
  • community-based efforts
  • housing
  • neighborhoods

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