Just like the cleanup after a brutal storm, the state of Michigan is attempting to clean up after the recession. One of the hardest hit areas seems to be the housing market which has forced thousands of residents to relocate. As Congressman Dan Kildee explained recently, lost populations in cities across the state have led to an oversupply in vacant and abandoned housing, which in turn is driving down the property values for homeowners in the area.
There is no questioning the fact that the recession hit many communities hard; but as we've mentioned before, some were hit harder than others. This was definitely the case for Flint which is still trying to recover economically and having a difficult time doing so. It's not for lack of trying by the people in the community, say many experts; it's the difficulty of convincing out-of-state businesses to come to Michigan that's been the tricky part.
Residents of Huntington Woods here in Michigan are no strangers to the fact that real estate properties are always evolving, changing the appearance of a town or city, always hopefully for the better. But what many people may not know is that the process is not as simple as just handing over a deed. Often times, a city council must decide what is best for the community, sometimes changing an area of land to something completely different than what it once was.
City and state officials announced a plan this week to transfer management and fiscal responsibility for Detroit's Belle Isle park to the state government. The lease will run for 30 years and is a part of a larger plan to upgrade and beautiful the deteriorating island.
We've been writing a lot about Detroit development both in the downtown area and in nearby suburbs. Investors are seeing a lot of potential in the low property prices in Detroit and the rest of Michigan and some are grabbing the opportunity to be the first in line for an improving local economy.
One building is already underway and a second will begin construction soon for a new housing complex for seniors on Detroit's east riverfront. The second complex will break ground early next year and be open in spring 2014. The new complexes will add to a growing list of new residential and commercial property development happening in Detroit right now.
In our last post we discussed new incentives that states are giving to home buyers to stimulate the housing market. Those efforts seem to be helping aid the recovery of home prices and have the added benefit of filling up homes that have gone unoccupied since a foreclosure. As a result, the construction industry has started to gear up for increased activity over the next few years, which may be a good sign for Detroit and the rest of Michigan.
In our last post we discussed the revitalization of the downtown Detroit area and new development that is happening there. In addition to the introduction of national retail chains, many local and national businesses are moving into office spaces in Detroit. While space is plentiful now, many businesses are looking towards their long term interests and making sure that their office space can accommodate growth.
Detroit residents are only about one year away from the grand opening of the first location of a national grocery chain in the downtown area. Building began last month on a Whole Foods location, which has many market watchers excited about other real estate development opportunities in Midtown Detroit.