Since the middle of the 20th Century, no American city has experienced the severe economic shock experienced in Detroit. Analyzing the housing of the city, I found the city’s shrinking housing stock has declined at almost precisely the same amount per year, every year: 1% of the existing stock lost. This underlying regularity, independent apparent […]
Book Review: Rybczynski’s Last Harvest
Witold Rybczynski’s 2007 book Last Harvest: From Cornfield to New Town is truly a unique book: an accessible, detailed narrative of the process of real estate development. The book describes the construction of a subdivision named New Daleville in southern Chester County in suburban Philadelphia. Or exurban, rather, since the development is over 45 miles […]
Mass. Survey Finds Nearly One-Quarter of Distressed Homeowners Obtain Loan Modifications
An intriguing new survey by the Massachusetts Association of Community Development Corporations finds that nearly one-quarter of homeowners facing foreclosure who sought counseling were able to obtain a loan modification from their mortgage lender. Drawing from 1,143 people who have sought assistance from non-profit agencies providing housing counseling, the survey also contains information about the […]
The Economics of Redevelopment
The photo above is a beautiful sight. No mere pile of dirt, the picture shows excavation for the foundation of a new house in a formerly vacant lot. Located at 1502 10th Street NW, the lot has been vacant at least as long as I’ve lived nearby (2 years) and most likely much longer. Although […]
Subprime Mortgages and Race
The map to the right shows the overwhelming majority of subprime loans and foreclosures in New York City have been in minority neighborhoods. (Created by NEDAP via NY Times) The map tells an often-overlooked fact: the subprime crisis has hit minority neighborhoods harder than white ones. The banking industry sometimes claims the differences in lending […]
The Equity of Housing Tax Benefits
The wide-ranging housing bill recently passed by Congress includes a program to help homeowners avoid foreclosure, money for community development, and other measures. One of its important provisions is a one-time tax benefit of $7,500 (or 10% of the home’s purchase price, whichever is less). Unlike many of the existing tax benefits of home ownership, […]
Preventing Another Subprime Mortgage Crisis
I think this article describes the origins of the mortgage crisis as good as any, and outlines the drawbacks of any bailout. However, I’m interested in the root of the problem. What can we do to minimize the number of foreclosures to begin with? First, a bit on where we are. Although hard facts are […]