Data Anaysis

THE RISE AND FALL OF DETROIT
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Abstract
Detroit is considered as the motor hub of the United States of America. It is even called Motown. The city hubs the great motor industries. Examples included are General Motors, Ford and Chrysler. In the largest petition filed for bankruptcy in recorded US history, in 2013 the city filed for bankruptcy.
This paper looks into the economic history of the great city of Detroit. It also takes a keen look at the factors that have led and are leading to the decline of the city. Some of the factors may include the economic decline of the major industries that held the city to its heights. In the year 2013, many of the motor industry companies filed for bankruptcy. The government had to be to bail the companies out of declaring total bankruptcy. Another reason may be due to the corruption and insecurity that has plagued the town. The issue of housing in the city is also looked into.
Housing in Detroit is deplorable. There are very few, if any, well-conditioned houses. The municipal and its leadership are currently focusing on alleviating the current unemployment crisis and creating better policies.
Detroit is by many names the hub of the American motor industry with giants like Ford, General Motors and, Chrysler. The city is also a manufacturing hub for other industries like the brewing industry. This city has been famed for that and much more. However, in the eve of 2013, the city plummeted to its knees and became among the largest metropolitan to file for bankruptcy in US history.

With a debt of over 18.5 billion CITATION Web13 l 1033 (Weber, 2013) the city filed its first bankruptcy petition. This bankruptcy claim was brought about by the failing industries in the municipality. For instance, Chrysler and the General Motors had also previously filed their own bankruptcy showing that the industry that the city was hinged upon was also dying. Despite the strenuous efforts put in by the government, the Motor City could not just be saved. However in the same way Boston bounces bank so does the city of Detroit.
By the year 2014, the city had about 252173 housing units. The rate of construction per year was 1300 houses. The biggest problem with this is that despite the good construction rates the city is drastically lacking in in safety measures for the houses. It is estimated that about 800 houses being built only 500 are within the city’s housing safety requirements. This means that a lot of the residents in the city are occupying houses that put their lives in danger. Despite the bad conditions, the city is still focusing on other issues such as proper policy making and fighting unemployment and the increasing crime rates.
The average selling price for a house in Detroit is currently at an all-time high compared to previous years. It currently stands at $165000. Total sale of property jumped by 8% in the year 2015 and is expected to rise. Even when the real estate market was plummeting in 2009, the Detroit real estate market did feel the plunder, but there was still enough market leverage to hold the real estate of the city together. Market prices then ranged between $ 35000 and $ 38000. Even with an increase in the selling prices of real estate, there is a serious decline in the inventories. The term inventories here refers to the number of houses. This is because of a number of reasons some of which include
The number of houses in the city have been far below the average 10000 new housing permits a year.
Another reason for the low inventory is that many current homeowners will lose money if they sell their houses in the current market. Census data reveal that about 21 percent of Metro Detroit are swimming in debt. The mortgages they have in their homes by far out do the value of their houses.
The current generation is not participating in home ownership endeavors. This is because of a large amount of debt they already have. For instance, student loans.
Appraisals of homes is another problem plaguing the housing industry of this motor city. Appraisals are the independent evaluation of what a home or a house is worth. Because of the many foreclosures, the appraisal method has become a stumbling block in the housing market. This is because it is an offense against federal law for a bank to issue a mortgage larger than the appraised value of the house.
Buffalo, Cleveland, and Pittsburg have suffered as much, economically and socially as Detroit. Yet none has sunk as deep into the depths of destruction as the famed Motown. So what has led to the utter deterioration of the well-being of this giant town?
The city is currently facing major problems of corruption. These lie in both public systems and the political platform.
There is also the rising tide of unemployment. The current rate of unemployment is very high. Despite the fact that many people have opted to walk away from the industries that would have sustained those who opted to stay behind have also relocated elsewhere. For instance, Ford whose home was in Detroit has not produced a single automobile in Detroit since 1910.
The major industries that held the economic standing of the city have been facing hardships. As earlier stated Chrysler and General Motors have reported bankruptcy and have had to be aided by the government. The decline in these industries has seen many people go unemployed and incomes drop.
Racial tension is one of the many problems riddling this state CITATION Web13 l 1033 (Weber, 2013). In its jaded history, there have been a tremendous number of riots against racism. These have led to countless injuries, arrests, and deaths.
Currently, there is a wave of change and resurrection for the fallen city. The state should, however, acknowledge that the change will not come about by merely just talking about it. Endless efforts and resources and man-hours must be spent on bringing back the city to its former glorious self.
Some of the steps being taken by the state include funding the city to get it back on its feet.
There is also a construction and renovation program to bring the deplorable state of the city’s buildings to a safer and much modern condition.
Business enterprises are also being encouraged back into the city through better business environments.
The state is also combating the high levels of unemployment.
References
BIBLIOGRAPHY l 1033 Weber, P. (2013, October 19). Economic History of Detroit. The Week, pp. 12-15.