Impact of Demo on Property Values
As blighted houses are coming down, property values are going up.
An aggressive public-private partnership to eliminate blight in Detroit has shown strong results thanks to more than $267 million in Hardest Hit Funds (HHF) from the U.S. Department of Treasury since the program was implemented in 2014. A detailed data report released in October 2015 by The Skillman Foundation, Rock Ventures, and Dynamo Metrics, in partnership with the City of Detroit, shows a significant increase in total home equity of homes in the demolition target zones. Report details can be found at DemolitionImpact.org.
The report's findings demonstrate large increases in home valuation from the HHF program in Detroit, including:
- The valuation of homes within 500 feet of an HHF demolition increased by an estimated 4.2 percent.
- The valuation of homes in HHF zones where a multi-faceted blight-elimination strategy was deployed increased by 13.8 percent. Multi-faceted blight-elimination includes HHF demolition, nuisance-abatement lawsuits, sales of side lots to neighbors and home auctions.