Neighborhood and Business Establishment Profile. Near East Side Area Detroit, Michigan

Transcription

1 Neighborhood and Business Establishment Profile Near East Side Area Detroit, Michigan Prepared by Data Driven Detroit For the Community Foundation for Southeast Michigan May 1, 2011

2 Contents Index of Figures... ii Index of Maps... iii Executive Summary...1 Study Area Geography...3 Demographic Profile...5 Population Overview...5 Age, Race, Gender...9 Educational Attainment Employment and Occupation Household Profile Household Overview Group Quarters Income Housing Profile Tenure and Length of Occupancy Vacancy Housing Type and Condition Housing Value Housing Market Profile Mortgage Lending Construction and Demolition PART II. Workforce and Business Profile Study Area Geography Workforce Profile Business Establishment Size Location of Major Employers Number of Business Establishments Industry Profile Without Downtown and the Medical Center Appendix Detroit Residential Parcel Survey Page i

3 Index of Figures Figure 1. Population Overview...5 Figure 2. Comparison of Population and Density...6 Figure 3. Demographic Characteristics Overview (2008)...9 Figure 4. Percent of Population by Age (2008)...9 Figure 5. Racial Makeup of Near East Side Neighborhoods, Figure 6. Population Distribution, by Age, by Race (2008), Near East Side Figure 7. Population Distribution, by Age, by Race (2008), Near East Side Area Figure 8. Percent of Population, 25 and over, by Education (2008) Figure 9. Adjusted Employment Rate, Age 16 and Over (2008) Figure 10. Civilian Employed Population Age 16 and Over, by Occupation Classification (2008) Figure 11. Percent of Employed Population, by Occupation Classification (2008) Figure 12. Household Overview Figure 13. Percent Change in Households and Family Households, Figure 14. Structure of Households Figure 15. Population in Group Quarters Figure 16. Income Overview Figure 17. Percent of Households by Household Income (2008) Figure 18. Percent of Family Households, by Income, Figure 19. Housing Tenure as a Percent of All Occupied Housing Units Figure 20. Length of Residency, Owner-Occupied Housing Figure 21. Median Value, Owner-Occupied Housing Figure 22. Distribution of Owner-Occupied Housing, by Value and Neighborhood (2008 Estimate) Figure 23. Housing Market Activity, Detroit Figure 24. Housing Market Activity, Near East Side Figure 25. Housing Sale Price Trend, Detroit, MI Figure 26. Housing Sale Price Trend, Near East Side Figure 27. Housing Market Activity, by Quarter, Near East Side Figure 28. High Cost Conventional Mortgages by Type (2004 to 2008) Figure 29. Mortgage Applications, Near East Side (2004 to 2008) Figure 30. Mortgage Originations, Near East Side (2004 to 2008) Figure 31. Ratio of Conventional Mortgage Denials to Originations (2004 to 2008) Figure 32. Building Permits Issued by Year, Near East Side Figure 33. Permits Issued by Type, Near East Side, Year ( ) Figure 34. Number of Permits by Type, Census Tract, Figure 35. Workforce by Sector (2008), Near East Side Figure 36. Total Workers per Neighborhood, Near East Side, Figure 37. Employment by Neighborhood and Industry, Near East Side, Figure 38. Average Number of Employees per Business, by Sector, Figure 39. Employment in Businesses by Neighborhood, Figure 40. Percent of Business Establishments, by Industry (2008), Near East Side Figure 41. Percent of Total by Industry Figure 42. Number of Businesses and Workers by Industry, Figure 43. Percent of Totals Excluding Downtown and Medical Center Page ii

4 Index of Maps Map 1. Near East Side Area, Detroit, MI...3 Map 2. Census Block Groups, East Jefferson Area...3 Map 3. Neighborhoods and Census Tracts, Near East Side Area...4 Map 4: Master Planning Neighborhoods, Near East Side, Map 5. Percent Population Change ( ), Detroit...6 Map 6. Percent Population Change ( ), East Jefferson Area...7 Map 7. Population Density (2008), Detroit...8 Map 8. Population Density (2008), Near East Side...8 Map 9. Average Population Age (2008), Near East Side Area Map 10. Percent Population Over Age 25, with a Bachelor's Degree or Higher (2008), East Jefferson Area Map 11: One Person Households Map 12: Adult Foster Care Group Homes Map 13. Median Household Income (2008), Near East Side Map 14. Per Capita Income (2008), East Jefferson Area Map 15: Percent Owner Occupied Housing, Map 16. DRPS Housing Vacancy Rate (August-October 2009) Map 17. USPS Housing Vacancy Rate (2010), Near East Side Map 18. Average Condition of Housing, (2009) Map 19. Percentage of Residential Parcels with an Existing Housing Structure, (2009), By Census Block Map 20. Vacant lots as a Percentage of Residential Parcels, Near East Side, Map 21. Median Owner-Occupied Housing Value (2008) Map 22. Median Residential Property Sale Price ( Q2) Map 23: Percent Change in Sale Price ( to Q2) Map 24: Percent of Mortgage Foreclosures Followed by Sale ( Q2) Map 25: Number of Parcels with at Least One Mortgage Foreclosure ( Q2) Map 26: Percent of Residential Parcels with Non-Investor Individual as Owner (2010Q2) Map 27. New Construction Permits, Near East Side ( ) Map 28: Repair Permits, Near East Side ( ) Map 29: Location of Census Tracts, Near East Side (2008) Map 30: Repair Permits, Near East Side ( ) Map 31: New Construction Permits, Map 32: Demolition Permits, Map 33: Repair Permits, Map 34. Near East Side Area Map 35: Census Tracts, Near East Side Study Area Map 36. Location of Employers and Employees within Census Tract (2010), Near East Side Page iii

5 Executive Summary The purpose of this report is to provide detailed benchmarks and analysis to stakeholders as they consider future development within and around the Near East Side. The report analyzes demographic and socioeconomic characteristics of residents in the Near East Side Area, outlines housing and neighborhood stability indicators and profiles the area s businesses and workforce. The Near East Side covers a large geographic footprint and is very socio-economically and culturally diverse. Because of this, an effort has been made in the report to compare and highlight neighborhoods and areas within the larger area to reveal trends and conditions that would not be evident when simply looking at the area as a whole. Further, due to the availability and limitations of data, some neighborhood boundaries have been shifted slightly to coincide with the geographic boundaries for which the data are available. The following is a summary of our analysis of demographic, socio-economic, housing and business data. Summary of Findings: Demographic and Socio-Economic Characteristics of Residents The Near East Side is a highly economically, racially and socially diverse area. While some parts have experienced some of the highest rates of abandonment and vacancy in the City of Detroit, other areas are among the city s most stable and wealthy neighborhoods. Though the Near East Side s population declined, it declined at a slower rate than the city overall (-8.40% vs %), according to estimates. 1 In addition, Rivertown, Brush Park and the Medical Center showed slight gains in population. Due mostly to these strong neighborhoods, the Near East Side boasts a higher overall population density than most Nearby cities including Berkley, Royal Oak and Ferndale. The Near East Side is less racially diverse and older than the city overall. The concentration of adult foster care homes, for those who can no longer take care of themselves, located along Grand Boulevard, serves to push up the average age of the area. While the area has a higher proportion of African Americans than the city overall, Whites, Asians and Mixed Race populations are found in higher concentrations than the city in the Indian Village, Art Center and Rivertown Neighborhoods. Summary of Findings: Housing Characteristics The Near East Side has a higher percentage of multi-unit housing and less of single family homes than the city overall. This fact contributes to it having a higher percentage of renter occupied units than the city (72% vs. 45%). When all forms of housing are included, areas such as the historic districts of West Village and Indian Village have low vacancy rates relative to the city as a whole. Overall, 16.7% of the existing 1-4 unit housing units in the Near East Side are vacant according to the Detroit Residential Parcel Survey (DRPS), August-October, This is higher than the citywide vacancy rate of 13%. 2 Areas such as Lafayette Park, the medical center and downtown, generally north of Jefferson and on either Side of I-75, with multi-unit housing structures (not inventoried during the DRPS), have vacancy rates well below the city average, according to the United States Postal Service. The multi-unit housing structures south of Jefferson have relatively higher vacancy rates. Of the 8, unit housing structures in the Near East Side area, 89.1% are in Good or Fair condition and 3.6% are in Demolition condition. This indicates that the housing stock in the area, on average is lower than that of the City overall, where 95.2% of its housing stock is in Good or Fair condition. 1 This report was completed prior to the first release of population counts from the 2010 Census. An updated analysis will be completed as an addendum to this report. 2 The addendum will include recent data on vacancy rates from the 2010 Census. Page 1

6 While the overall proportions of good and fair housing are lower than the city as a whole, some parts of the East Jefferson Area have much stronger than average housing conditions: Indian Village, West Village, and Berry subdivision are examples. In addition, almost all of the housing stock west of Mt. Elliot and south of East Jefferson was not included in the condition survey; much of this multi-unit housing is comprised of wellmaintained apartments and condominiums. Construction and Repair building permits declined from There were 49% fewer construction permits issued in 2007 than 2006 and 34% percent fewer construction permits issued in 2008 than in New construction permits were highly localized over this time period. The majority of new construction during these three years took place along the Woodward corridor, especially downtown. Summary of Findings: Housing Market Characteristics In 2008, the estimated median value of owner-occupied housing in Detroit, as a whole, was $86,157 and $53,699 in the Near East Side. Compared to the city as a whole, a higher proportion of the Near East Side's owner-occupied homes are valued at less than $40,000. More than 38% in the Near East Side and approximately 17% in Detroit are included in this group. Like other housing characteristics, values vary widely within the Near East Side area. For instance, more than 40% of the owner-occupied housing in each of the following neighborhoods had an estimated value of more than $150,000: Art Center (48%), Brush Park (54%), Downtown (50%), Indian Village (79%), Rivertown (99%), and West Village (46%). Detroit s housing market has changed significantly since More specifically, market sales 3 have greatly been replaced with REO sales (Real Estate Owned sales that follow foreclosures). This shift broadly occurred in 2008, following the apex of mortgage foreclosures in Although the pace of foreclosures in the city and the Near East Side has slowed, foreclosures still outnumber market sales. Mortgage foreclosures have been concentrated in areas with higher proportions of existing housing, as opposed to areas with high proportions of vacant lots. Historically strong neighborhoods such as Lafayette Park, Indian Village and the Gold Coast are included amongst this group. While high cost lending decreased after the implementation of tighter lending policies, overall loan applications and originations experienced steep declines. From 2005 to 2008, the number of mortgage applications decreased from 120,690 to 22,693 Summary of Findings: Workforce and Business Establishment Trends The Near East Side has several large regional employment anchors, as it includes businesses in the downtown financial district, the Detroit Medical Center and Midtown. Because of these and other employment centers, the Near East Side is home to a large number of workers (73,353) on a daily basis. In 2008, the Heath Care and Social Services sector accounted for 20% of the workforce in the Near East Side. Other sectors with large amounts of employees were the Public Administration sector (15%), Manufacturing (11%), Professional and Scientific (9%), and Finance and Insurance with 9% of the workforce. Workers in the Near East Side are highly concentrated in the Downtown and Medical Center neighborhoods. When the Downtown and Medical Center areas are excluded, Health Care, Nonclassified Industries and Manufacturing are the largest employers. 3 Data analyzed in this section originate from CoreLogic and Social Compact. This dataset includes transaction records, each coded as either a "Foreclosure", "REO Sale", or "Market Sales". For this dataset: "Foreclosure" refers to a completed mortgage foreclosure. The lender of the defaulted loan becomes the owner in this transaction. "REO Sale" refers to the first sale following the foreclosure transaction (the sale out of foreclosure). "Market Sales" in this dataset refer to ownership transfers other than foreclosures, REO Sales, or reversion to a public entity. Market Sales are only arms-length. Page 2

7 Part I. Neighborhood Profile Study Area Geography Map 1. Near East Side Area, Detroit, MI The East Jefferson Area is roughly bounded by Woodward (W),I-94(N), McClellan and Marquette (E), and the Detroit River (S). The study area contains 79 Census Block Groups (below). Definition of Block Groups: Due to the size and diverse nature of the area, we have attempted to provide meaningful subarea analyses by aggregating data to neighborhood level. While it would be ideal that these neighborhoods adhered to universally agreed upon boundaries, boundaries are often not clear. Further, because data are available only for certain geographies that do not always match up with traditional neighborhood boundaries, this report has adjusted some neighborhoods, where needed, to line up with available data. Map 2. Census Block Groups, East Jefferson Area Page 3

8 The Near East Side area profile primarily uses data aggregated at the Census Block Group level. Therefore, neighborhoods are adjusted to line up to those boundaries. For context, Map 3 shows the overlap of Block Groups and neighborhoods within the study area. Map 3. Neighborhoods and Census Tracts, Near East Side Area Another neighborhood configuration was created by the city for master planning purposes. Map 4 shows that these areas tend to be larger, follow major roads, are contiguous, and completely contain all parts of the area. This report sometimes uses these master plan neighborhoods along with the above neighborhoods to summarize results. Page 4

9 Map 4: Master Planning Neighborhoods, Near East Side, 2010 Demographic Profile Population Overview The Near East Side experienced a slower loss in population than the city as a whole (-8.4% vs %), though the loss was faster than many inner-ring suburban cities. Still, the population density of the Near East Side remains higher than Berkley, Dearborn Heights, Ferndale, Royal Oak and Warren. (See maps on pages 8 and 9.) Between 2000 and 2008, the relative mix of ages in the population of the Near East Side changed along with the decrease in overall population. The largest loss in population occurred in the 5-9, and year old age ranges, according to Claritas estimates. The area also gained population among the and year old age ranges, which is in line with the overall demographic trend of the large baby boomer generation getting older. 4 Figure 1. Population Overview Detroit, MI Near East Side Area Total Population: ,270 66, ,508 61,302 Percent Change in Population ( ) -10.4% -8.4% Sources: Claritas; Data Driven Detroit 4 Age detail, at the subcity level, from the 2010 Census will not be released until June Page 5

10 Although population decline was greater within the Near East Side Area than the selected Nearby suburban cities, its population density remains higher. Figure 2. Comparison of Population and Density Near East Side Warren, MI Berkeley, MI Ferndale, MI Royal Oak, MI Dearborn Hts., MI Pct. Change in Population ( ) -8.4% -3.4% -4.6% -4.5% -4.1% -6.7% Population Density 2008 (Persons per Acre) Sources: Claritas; Data Driven Detroit Map 5. Percent Population Change ( ), Detroit Between 2000 and 2008, areas that gained population include: Brush Park, Lafayette Park, areas along the western portions of the East Jefferson corridor, Eastern portions of Elmwood Park, Rivertown, the Gold Coast, and the Berry subdivision. This growth helped to offset population decline elsewhere, most steeply within western portions of Elmwood Park, Islandview Village, West Village, the north end of Indian Village (and the area to its west), and most of the area north of Mack. Page 6

11 Map 6. Percent Population Change ( ), East Jefferson Area Page 7

12 Map 7. Population Density (2008), Detroit In 48 of the 79 block groups in the Near East Side Area, the population density is higher than the population density for the city (9.6 persons per acre). Wide density variation exists across the Area s Block Groups. Density is highest in Lafayette Park, areas of Islandview Village, the Gold Coast and Elmwood Park. Density is lowest in western Islandview Village, and block groups north of Gratiot. Map 8. Population Density (2008), Near East Side Page 8

13 Age, Race, Gender The population within the Near East Side Area is less racially diverse and older than the city as a whole. The average and median ages within the Near East Side area are both significantly higher than that of Detroit. The study area has a smaller proportion of residents in each of the age categories younger than 35, and a larger proportion of residents in the age categories 45 and older. The area has significantly higher percentages of people over the age of 65. Racial and age diversity exists across the block groups, as illustrated in the Map 9 and Figures 4 and 5. Figure 3. Demographic Characteristics Overview (2008) Detroit, MI Near East Side Area Total Population (2008) 852,508 61,302 Race White Alone 89, % 5, % Black or African American Alone 702, % 54, % American Indian and AL Native Alone 2, % % Asian Alone 9, % % Native Hawaiian and Other Pacific Islander Alone % % Some Other Race Alone 28, % % Two or More Races 20, % % Hispanic or Latino Population Hispanic or Latino 55, % % Not Hispanic or Latino 796, % 60, % Average Age Median Age Gender Male 404, % 28, % Female 448, % 32, % Male/Female Ratio Sources: Claritas; Data Driven Detroit Figure 4. Percent of Population by Age (2008) 16.0% Near East Side 14.0% Detroit 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Sources: Claritas; Data Driven Detroit Page 9

14 Map 9. Average Population Age (2008), Near East Side Area Though the average age is higher in the area, there is a great deal of age diversity across the Near East Side. Areas to the south on either Side of Jefferson Avenue are generally older and areas in the northeast are Near average for the city. Figure 5. Racial Makeup of Near East Side Neighborhoods, % Black Alone 90.0% White Alone 80.0% Asian Alone 70.0% Two or More Races 60.0% 50.0% Other Race Alone 40.0% American Indian Alone 30.0% * Small Number of 20.0% Pacific Inslaners Not Reflected in Graph 10.0% 0.0% The Near East Side encompasses a wide variety of neighborhood types, featuring very different racial compositions. While the area as a whole has a higher proportion of African Americans, several neighborhoods have high relative percentages of Whites, Asians, and mixed race populations, specifically, the Art Center, Indian Page 10

15 Village and Rivertown. The East Village, Elmwood Park, Forest Park, Island View Village and the Medical Center area are more African American than the City as a whole. Figure five above shows the racial compositions of the major neighborhoods in the area, in addition to the Near East Side as a whole. Figure 6. Population Distribution, by Age, by Race (2008), Near East Side Population Distribution, by Age, by Race (2008), East Jefferson Area Black White Amer. Indian Asian Pac. Island Other Race Mixed Race Total Age 0 to 4 3, ,383 Age 5 to 9 3, ,514 Age 10 to 14 3, ,958 Age 15 to 17 2, ,551 Age 18 to 20 2, ,475 Age 21 to 24 2, ,840 Age 25 to 34 6, ,451 Age 35 to 44 7, ,477 Age 45 to 49 3, ,367 Age 50 to 54 3, ,425 Age 55 to 59 3, ,145 Age 60 to 64 2, ,140 Age 65 to 74 4, ,658 Age 75 to 84 3, ,924 Age 85 and over ,994 Total 41,903 4, ,367 Sources: Claritas; Data Driven Detroit Among different age groups, the percentages of people are similar across all racial compositions. The highest number for most races falls in the 35 to 44 years category. However, the largest age cohort for Asians people is 25 to 34 years. The area generally follows national demographic trends around aging in the fact that our population as a whole is getting older. The graph below shows that there are generally more older people than there are younger people. Page 11

16 Figure 7. Population Distribution, by Age, by Race (2008), Near East Side Area 100.0% 90.0% Less than 9th grade 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Some High School, no diploma High School Graduate (or GED) Some College, no degree Associate Degree Bachelor's Degree Master's, Doctorate, or Professional Degree Sources: Claritas; Data Driven Detroit Educational Attainment The Near East Side is both better educated and less educated than the City as a whole. It has higher percentages of people with Doctoral, Master s and Bachelor s degrees than the City, while also having higher shares of residents that never graduated from high school. Specific neighborhoods - Indian Village (over 30%), the Gold Coast (over 30%), Lafayette Park (over 40%) and Rivertown (over 55%) - have high percentages of people with Bachelor s degrees or higher. Alternatively, Brush Park, Forest Park, Island View Village, Midtown and Poletown East all have Nearly half of their residents not finishing high school. Page 12

17 Figure 8. Percent of Population, 25 and over, by Education (2008) 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Less than 9th grade Some High School, no diploma High School Graduate (or GED) Some College, no degree Associate Degree Bachelor's Degree Master's, Doctorate, or Professional Degree Sources: Claritas; Data Driven Detroit Generally speaking, neighborhoods south of Mack have higher percentages of people with Bachelor s degrees or higher. Rivertown, Lafayette Park and the Southern portion of Islandview Village have particularly high percentages, with more than 40% of the population holding bachelor s degrees. Page 13

18 Map 10. Percent Population Over Age 25, with a Bachelor's Degree or Higher (2008), East Jefferson Area Employment and Occupation The Near East Side has a lower percentage of employed persons, a higher unemployment rate and a higher percentage of persons not in the labor force. Nearly 60% of people in the Near East Side are either unemployed or do not have a formal job. Figure 9. Adjusted Employment Rate, Age 16 and Over (2008) Detroit, MI Near East Side Civilian - Employed 48.8% 41.1% Civilian - Unemployed 7.7% 7.3% Unemployment Rate 13.7% 15.0% Not in Labor Force 43.4% 51.6% Sources: Claritas; Data Driven Detroit Figure 10. Civilian Employed Population Age 16 and Over, by Occupation Classification (2008) Detroit, MI Near East Side Civilian Employed Pop, Age 16 and Over (2008) 307,115 11,646 Blue Collar 91, % 1, % White Collar 149, % 7, % Service and Farm 66, % 2, % Sources: Claritas; Data Driven Detroit Page 14

19 Among the employed population, however, the Near East Side has a significantly higher percentage of white collar employees than the City overall (57.9 vs. 48.7). When examined by occupation, the Near East Side has a higher proportion employed in Professional and Business Management occupations, and a lower proportion employed in Production and Transportation occupations. Figure 11. Percent of Employed Population, by Occupation Classification (2008) 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% Production, Transportation, and Material Moving Construction, Extraction, and Maintenance Farming, Fishing, and Forestry Sales and Office Service Professional and Related Occupations Management, Business, and Financial Operations 0.0% Sources: Claritas; Data Driven Detroit Page 15

20 Household Profile Household Overview 5 Both the Near East Side and the City of Detroit lost households between 2000 and 2008, though the Near East Side lost a smaller proportion of its households than the City (8.0% vs. 11.2%). While the area did experience a loss in households, several neighborhoods actually gained. Forest Park, Lafayette Park and Rivertown all gained both family and non-family households, while Brush Park's gain was almost exclusively non- family households. The largest rates of decline were in Downtown, the East Village, Islandview Village and Poletown East. In 2008, the Near East Side contained 62,484 households, with 43.7% of these being family households. This is much lower than the share represented by families in Detroit as a whole (64.5%). Between 2000 and 2008, families left the area at a rate similar to that of the entire city, but the area lost a far smaller proportion of nonfamily households. The average household size is smaller in the Near East Side, consistent with the finding that the area has a higher proportion of non-family households - primarily single person households. Figure 12. Household Overview Detroit, MI Near East Side Area Households by Type: All Households 5 298,845 26,484 Family Households (2008) 192, % 11, % Nonfamily Households (2008) 106, % 14, % Percent Change in HHs, by Type ( ) All Households -11.2% -8.0% Family Households -11.8% -10.7% Nonfamily Households -10.1% -5.8% Average Household Size (2008) Change in Average HH Size ( ) 0.7% -1.4% Sources: Claritas; Data Driven Detroit 5 A household consists of all the people (related or unrelated) who occupy a housing unit. The count of households excludes group quarters. A family is a group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together. There are two major categories of households, "family" and "nonfamily". A family household is a household maintained by a householder who is in a family (as defined above), and includes any unrelated people who may be residing there. A nonfamily household consists of a householder living alone (a one-person household) or where the householder shares the home exclusively with people to whom he/she is not related. Page 16

21 Near East Side Detroit Art Center Brush Park Downtown East Village Elmwood Park Forest Park Gold Coast Indian Village IslandView Village Lafayette Park Medical Center Midtown Poletown East Rivertown West Village Figure 13. Percent Change in Households and Family Households, % 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% Households Families -20.0% Sources: Claritas; Data Driven Detroit Figure 14. Structure of Households Detroit, MI Near East Side Area Households by Type and Presence of Own Children (2008) Single Male Householder 41, % 5, % Single Female Householder 47, % 7, % Married-Couple Family 79, % 3, % With own children 37, % 1, % No own children 42, % 2, % Male Householder 19, % 1, % With own children 8, % % No own children 11, % % Female Householder 93, % 6, % With own children 54, % 3, % No own children 38, % 3, % Nonfamily: Male Householder 10, % % Nonfamily: Female Householder 7, % % The area has a high percentage of single person householders (49.5%) when compared to the City (29.7%). It also has a significantly lower percentage of households with married couples, both with and without children and female-headed households (see figure 14, above). Block groups along Woodward, in Lafayette Park and along Jefferson generally have 60-80% one-person households. Much of this can be attributed to the high percentage of apartments and multi-unit buildings in these areas. Additionally, family households tend to be Page 17

22 smaller in the Near East Side, with 40.8% of families being 2-person households (compared with 31.4% for the City). It also has a smaller percentage of families with 4 or more people. Map 11: One Person Households Group Quarters The Near East Side houses a large proportion of the City s population in group quarters. While it represents only 7.2% of the total population of the city, 27.4% of the city s group quarters population resides there. Similarly, those in group quarters make up a larger percent of the Near East Side s population (8.8%) than they do of the City as a whole (2.3%). This likely is due to the presence of several adult group homes / senior assisted living facilities in the area, which also skew the neighborhood's to the higher end of the age structure. Though there are facilities throughout the area, there is an extreme congregation of facilities along Grand Boulevard in Islandview Village and to its north. Figure 15. Population in Group Quarters Near East Side Detroit Percent of City Population in Group Quarters 5,389 19, % Total Population 61, , % Percent of Area Total 8.8% 2.3% Page 18

23 Map 12: Adult Foster Care Group Homes Income The median household income in the area is more than $7,000 less than Detroit ($23,885 vs. $31,354). Median Family Household income is also lower than the City as a whole. On a proportional basis, the area skews to the lower end of the income spectrum due to its higher percentage of households earning $15,000 or less. Figure 16. Income Overview Detroit, MI Near East Side Area Median Household Income (2008) $31,354 $23,885 Median Family Income (2008) $36,472 $29,291 Per Capita Income (2008) $15,177 $17,203 Sources: Claritas; Data Driven Detroit Page 19

24 % of Families in Income Range Figure 17. Percent of Households by Household Income (2008) 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% $150,000 or More $100,000 to $149,999 $75,000 to $99,999 $50,000 to $74,999 $35,000 to $49,999 $25,000 to $34,999 $15,000 to $24,999 Less than $15, % 10.0% 0.0% Near East Side Detroit Though the area in general has lower household and family incomes, there are notable exceptions. Over 80% of families in Indian village and more than 70% of families in Rivertown earn at least $50,000 a year in income. In Indian Village, more than 50% of families earn at least $75,000. In Brush Park, more than 50% of families earn less than $15,000 a year and 75% earn less than $25,000 per year. Figure 18. Percent of Family Households, by Income, % 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% $150,000 or more $100,000 to $149,999 $75,000 to $99,999 $50,000 to $74,999 $25,000 to $44,999 Less than $24,999 Sources: Claritas; Data Driven Detroit Page 20

25 The map below shows the spatial distribution of median household income by block group. There are no block groups with a median household income above $40,000 north of Mack Ave. Several areas have higher median households than the City, including parts of Downtown, Indi an Village, Rivertown and part of Islandview Village. Not surprisingly, these areas also have the highest per capita income (Map 14). Map 13. Median Household Income (2008), Near East Side Page 21

26 Map 14. Per Capita Income (2008), East Jefferson Area Page 22

27 Housing Profile Tenure and Length of Occupancy Figure 19 illustrates that the Near East Side has a much higher percentage of renter-occupied units than does the City (72.2% vs. 45.2%). This helps to explain why the area also tends to have lower lengths of residency overall. Some areas, however, have very high rates of owner-occupied units. Indian Village has the highest share, but areas to the north of Indian Village and areas just south of I-94 also have high rates of owneroccupied units. Map 15: Percent Owner Occupied Housing, 2008 Page 23

28 Figure 19. Housing Tenure as a Percent of All Occupied Housing Units 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% % Renter Occupied % Owner Occupied 30.0% 20.0% 10.0% 0.0% Sources: Claritas Data Driven Detroit Figure 20. Length of Residency, Owner-Occupied Housing Area Years Near East Side Area 11 Detroit City 12 Art Center 7 Brush Park 6 Downtown 6 East Village 14 Elmwood Park 9 Forest Park 5 Gold Coast 8 Indian Village 12 Islandview Village 13 Lafayette Park 7 Medical Center 7 Midtown 11 Poletown East 12 Rivertown 5 West Village 8 Looking at owner-occupied units alone, most neighborhoods still have a lower length of residency than the city average. Only the East Village and perhaps other areas within the Near East Side, but outside the defined neighborhoods, have a slightly higher average length of residency than the city. Indian Village, which is the only neighborhood with over 80% owner-occupied housing, has the same average length of residency as the city. Other neighborhoods with traditionally strong housing stocks, such as Lafayette Park, Rivertown and the Gold Coast, have much lower average lengths of residency than the city overall. Page 24

29 Vacancy Data Driven Detroit undertook a residential parcel survey for the City of Detroit in the Fall of Surveyors recorded data on several characteristics of each parcel - if there was a structure, a determination of occupied or vacant was made, the number of units (1-4) was determined and the and the condition of structure was assessed. If there was no structure, the parcel was recorded as a vacant lot. Surveyors only collected data on residential properties that were zoned 1-4 unit homes, and the data were collected via a windshield survey approach. Surveyors did not leave their cars not try to assess multi-unit structures - condominiums or apartment complexes. As a result, large swaths of area in the Near East Side are therefore not included. In the map below, the vacancy rates for existing homes are shown in shades of blue. Lighter shades indicate a lower rate of vacancy among houses on a given block. The vacancy rate of the housing stock varies widely block to block. In general, however, more high vacancy blocks are in the central part of the Near East Side, and the lowest rates are in blocks in and around Indian Village and along Jefferson. In the map below, the three darkest shades all represent blocks whose vacant housing rate is above the rate for the city (13.2% of all housing units, in 1-4 unit structures, are vacant in the city). Overall, 16.7% of the existing 1-4 unit housing units in the Near East Side is vacant. Map 16. DRPS Housing Vacancy Rate (August-October 2009) Page 25

30 The USPS vacancy rate includes housing structures with more than four units. Therefore, it supplements the Residential Parcel Survey by including areas that have little to no single family housing. Housing vacancy, as measured through mail delivery, is highest in the areas North of Mack Ave. Rates are lowest in all the areas along Jefferson, as well as Midtown, the Medical Center and Downtown. Several of these areas are not covered by the DRPS and give us the best picture of vacancy in the area. Overall, the vacancy rate measured by the postal service for the Near East Side is 20.3%. Map 17. USPS Housing Vacancy Rate (2010), Near East Side Page 26

31 Housing Type and Condition Detroit s largest housing type segment is "1-unit, detached" (often thought of as single-family housing), comprising 61.8% of the city s housing stock. The Near East Side has a large number of 50+unit structures, comprising a large proportion of the area s housing. The housing stock in the Near East Side is older, due in part to its proximity to the city s center and its large quantity of preserved historic housing. The areas with the best housing conditions also have some of the oldest housing stock -- the well-maintained Indian Village, West Village, and Berry Subdivision historic districts. Of the 8, unit housing structures in the Near East Side Area, 89.1% are in good or fair condition. (Please see Detroit Residential Parcel Survey in the Appendix for survey definitions.) Although the percentages of good or fair housing are lower than the city's averages, almost all of the housing stock west of Mt. Elliot and south of East Jefferson was not included in these calculations. Much of this multi-unit housing is comprised of well-maintained apartments and condominiums. Map 18. Average Condition of Housing, (2009) Page 27

32 Map 19. Percentage of Residential Parcels with an Existing Housing Structure, (2009), By Census Block While the average condition of the remaining occupied housing units is better than the city as a whole, Map 19. Percentage of Residential Parcels with an Existing Housing Structure, (2009), By Census Blockabove, shows that many blocks in the area have very low percentages of existing housing structures compared to what was originally there. This means that the area has a high proportion of lots which have already been cleared of poor condition housing. In fact, 42.9% of the parcels surveyed through the DRPS were vacant lots. In comparison, 23.6% of the City s 1-4 unit residential parcels are now vacant lots. The vacant lots in the Near East Side represent 13.3% of the vacant lots surveyed in the city, while its population represents only 7.2%. Areas with the greatest amount of intact residential housing are also located within the historic districts and appear to be spatially correlated with higher quality housing conditions. Page 28

33 Map 20. Vacant lots as a Percentage of Residential Parcels, Near East Side, 2009 Though the Near East Side has a high percentage of vacant lots in its single family residential areas, Indian Village, much of the West Village, and areas of the Gold Coast have very low percentages of vacant lots. Much of the area west of Mount Elliot has a high degree of vacant lots, with almost every block surveyed having a residential vacancy rate over 50%. Page 29

34 Percent of Residences in Value Housing Value In an effort to better understand housing values, two measures are included in this section: 1) the estimated value of owner-occupied housing, and 2) the sale prices for 1-4 unit residential properties (regardless of ownership or occupancy). Figure 21. Median Value, Owner-Occupied Housing Median Value, Owner-Occupied Housing In 2008, the estimated median value of owner-occupied housing was Near East Side Area $53,699 $86,157 in Detroit and $53,699 in the Near East Side. Detroit $86,157 Art Center $79,000 Compared to the city as a whole, a higher proportion of the Near Brush Park $166,667 East Side's owner-occupied homes are valued at less than $40,000-38%, as opposed to approximately 17% in Detroit as a whole. Like East In other housing characteristics, values vary widely within the Near Side area. For instance, more than 40% of the owner-occupied housing in each of the following neighborhoods had an estimated value of more than $150,000: Art Center (48%), Brush Park (54%), Downtown (50%), Indian Village (79%), Rivertown (99%), and West Village (46%). contrast, other neighborhoods have large proportions of housing estimated at less than $40,000: East Village (46%), Forest Park (all), Islandview (49%), and Poletown East (66%). Sources: Claritas; Data Driven Detroit Figure 22. Distribution of Owner-Occupied Housing, by Value and Neighborhood (2008 Estimate) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Downtown $150,000 East Village $45,667 Elmwood Park $95,575 Forest Park $30,000 Gold Coast $92,041 Indian Village $357,333 Islandview Village $41,654 Lafayette Park $101,958 Medical Center $80,000 Midtown $70,000 Poletown East $32,222 Rivertown $310,938 West Village $136,250 $300,000 and up $200,000 to $299,999 $150,000 to $199,999 $100,000 to $149,999 $80,000 to $99,999 $60,000 to $79,999 $40,000 to $59,999 $20,000 to $39,999 Less than $20,000 Sources: Claritas; Data Driven Detroit Page 30

35 Map 21. Median Owner-Occupied Housing Value (2008) Concentrations of the highest owner-occupied housing values are broadly located in the historic districts and areas with high-quality condominiums. It is mostly these same areas that have experienced the highest median sale prices over the last five years (Lafayette Park, Indian Village, Rivertown, Gold CoastError! Reference source not found.). As a second measure of housing value, Map 21 6 shows estimated median values of all owner - occupied housing in the area. Since these data are not exclusively based on sales prices, foreclosures and REO sales have little effect. Map 22. Median Residential Property Sale Price ( Q2) When foreclosure and REO sale prices are not included in the valuation of homes as they are in map 22, the market values of homes in various Near East Side neighborhoods tends to be much higher (Indian Village, Lafayette Park, Medical Center). Housing Market Profile Detroit s housing market has changed significantly since More specifically, market sales 7 have greatly been replaced with REO sales (Real Estate Owned sales that follow foreclosures). The major shift occurred in 2008, following the apex of mortgage foreclosures in Although the pace of foreclosures in the city and the Near East Side has slowed, foreclosures still outnumber market sales. 6 As in Map 21. Median Owner-Occupied Housing Value (2008), commonly-used sources (the U.S. Bureau of the Census, Claritas, and ESRI) provide estimates only for owner-occupied housing values. This does not include renter-occupied housing or vacant houses. These factors, particularly vacant housing, play a large role in neighborhood conditions and housing values on the Near East Side. Claritas is also modeled off of Census 2000 data, meaning that the basis for the model precedes the housing crisis. For these reasons, Claritas tends to provide higher than market-value estimates across Detroit. 7 Data analyzed in this section originate from CoreLogic and Social Compact. This dataset includes transaction records, each coded as either a "Foreclosure", "REO Sale", or "Market Sales". For this dataset: "Foreclosure" refers to a completed mortgage foreclosure. The lender of the defaulted loan becomes the owner in this transaction. "REO Sale" refers to the first sale following the foreclosure transaction (the sale out of foreclosure). "Market Sales" in this dataset refer to ownership transfers other than foreclosures, REO Sales, or reversion to a public entity. Market Sales are only arms-length. Page 31

36 No. of Transactions No. of Transactions Figure 23. Housing Market Activity, Detroit Housing Market Activity (2005 to 2010Q2) Detroit, Michigan 25,000 20,000 15,000 10,000 5, Q1-Q2 Market Sales 11,725 12,609 7,998 3,371 1, REO Sales 3,218 3,077 5,245 10,942 21,634 11,511 Foreclosures 7,432 12,441 15,166 10,898 6,175 3,884 Sources: CoreLogic; Social Compact; Data Driven Detroit Figure 24. Housing Market Activity, Near East Side Housing Market Activity (2005 to 2010Q2) Near East Side, Detroit, Michigan 1, Q1-Q2 Market Sales REO Sales Foreclosures Sources: CoreLogic; Social Compact; Data Driven Detroit Page 32

37 Median Sales Price (Dollars) Declining housing sale prices reflect the foreclosure crisis and weak housing market demand. At its height in 2007Q3, the median housing sale price in Detroit was $70,000, declining to $7,500 by 2010Q2. The Near East Side's median housing sale price reached its peak in 2006Q1 of $75,000, declining to $5,000 by 2010Q2. Figure 25. Housing Sale Price Trend, Detroit, MI 100,000 Housing Sale Price Trend (2005 to 2010Q2) Arms-Length Market Sales and REO Sales, Transactions by Quarter Detroit, Michigan 80,000 60,000 40,000 20, Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 Arms-Length Market Sales 80,000 80,000 82,000 83,000 84,700 82,000 83,448 82,000 82,000 81,000 85,000 80,000 85,000 80,000 79,000 78,000 69,900 60,000 55,894 55,800 50,000 50,000 REO Sales 39,000 41,418 41,000 27,000 42,158 42,900 40,000 20,000 3,710 7,000 18,000 10,000 10,000 8,900 8,500 4,750 5,000 5,000 5,400 3,500 5,100 6,900 Arms-Length and REO Sales Combined 75,000 75,000 77,000 75,000 80,000 79,405 79,000 73,000 66,000 65,000 70,000 35,000 23,600 13,200 11,200 6,000 6,000 5,120 6,100 4,131 6,300 7,500 Sources: CoreLogic; Social Compact; Data Driven Detroit Page 33

38 Median Sales Price (Dollars) Although the Near East Side may appear to have experienced a resurgence in market sale prices in 2009, there are too few of these sales to consider this a recovery. The bulk of sales continue to be post-foreclosure, depressed price sales. Figure 26. Housing Sale Price Trend, Near East Side 150, ,000 90,000 60,000 30,000 - Housing Sale Price Trend (2005 to 2010Q2) Arms-Length Market Sales and REO Sales, Transactions by Quarter Near East Side, Detroit, Michigan 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 Arms-Length Market Sales 63,500 61,000 61,000 65,000 82,500 65,000 66,000 69,000 65,000 62,000 59,000 63,500 60,000 51,000 66,000 58,781 94,000 73,500 32, ,224 50,000 34,500 REO Sales 23,300 12,900 7,900 3,000 7,450 21,000 26,600 4, ,900 2,900 2,500 3,000 3,000 1,250 1,550 2,200 2, ,200 4,000 Arms-Length and REO Sales Combined 61,500 60,500 53,000 60,000 75,000 62,750 65,000 61,000 20,000 3,850 11,500 3,000 5,250 6,500 4,475 1,922 2,000 4,268 3, ,000 5,000 Sources: CoreLogic; Social Compact; Data Driven Detroit Figure 27. Housing Market Activity, by Quarter, Near East Side No. of Transactions Housing Sales (2005 to 2010Q2) Arms-Length Market Sales and REO Sales, Transactions by Quarter Near East Side, Detroit, Michigan 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 Market Sales REO Sales Sources: CoreLogic; Social Compact; Data Driven Detroit Page 34

39 Map 23: Percent Change in Sale Price ( to Q2) Trends across the Near East Side reflect Detroit's overall weak market challenges; demand continues to be significantly weaker than in the mid-2000s. There are some areas that have been relatively less affected. Differences in demand within the Near East Side is reflected in both the percent change in price (Map 23), as well as the absorption of foreclosures back into the housing market (Map 24). Map 24: Percent of Mortgage Foreclosures Followed by Sale ( Q2) Pockets of relative demand for housing are shown in Map 24; greens and blues represent areas where at least half of the foreclosed properties were bought following foreclosure. This measure of market strength shows areas in and around traditionally strong neighborhoods such as Indian Village, the Gold Coast and Lafayette Park to have retained a higher postforeclosure demand than areas North of Mack. Page 35

40 Map 25: Number of Parcels with at Least One Mortgage Foreclosure ( Q2) As shown in Map 25, mortgage foreclosures have been concentrated in areas with higher proportions of existing housing, as opposed to areas with high proportions of vacant lots (See Map 19 on page 28). Historically strong neighborhoods such as Lafayette Park, Indian Village and the Gold Coast are included amongst this group. While this may help to focus mortgage foreclosure response efforts, it should be noted that this map does not illustrate the additional challenges resulting from tax foreclosures. Map 26: Percent of Residential Parcels with Non-Investor Individual as Owner (2010Q2) Map 26 shows land ownership. This helps to better illustrate the effects stemming from both tax and mortgage foreclosures. Areas on the red end of the spectrum have the highest percent of properties owned by public entities, banks, or investors. Areas on the blue end of the spectrum are more heavily owned by individuals who are not likely investors. Page 36