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

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

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.

Suggested Citation

  • Lan Deng & Eric Seymour & Margaret Dewar & June Manning Thomas, 2018. "Saving Strong Neighborhoods From the Destruction of Mortgage Foreclosures: The Impact of Community-Based Efforts in Detroit, Michigan," Housing Policy Debate, Taylor & Francis Journals, vol. 28(2), pages 153-179, March.
  • Handle: RePEc:taf:houspd:v:28:y:2018:i:2:p:153-179
    DOI: 10.1080/10511482.2017.1331366
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    Cited by:

    1. Roshanak Mehdipanah & Margaret Dewar & Alexa Eisenberg, 2021. "Threats to and Opportunities for Low-Income Homeownership, Housing Stability, and Health: Protocol for the Detroit 2017 Make-It-Home Evaluation Study," IJERPH, MDPI, vol. 18(21), pages 1-15, October.

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