Category: featured

DDOT Pledges to Improve Service Amid Even Longer Commute Times

No one likes a long commute, period. So much so that 14% of Americans have changed jobs in order to shorten their commute time. As for those living in the sprawling Detroit-metro area, commute times are getting longer while jobs within reasonable commuting distances are getting harder to find.

A recent study conducted by the Brookings Institution and based on U.S. Census Bureau data revealed that between 2000 and 2012, getting to and from work became increasingly difficult for people in almost every major metro area in the U.S., especially Detroit. Suburbanites didn’t fare much better either, and experienced twice as many losses for jobs within reasonable commuting distances. For the study, researchers closely examined how many jobs in each metro area were located within the average commuting time and distance for that specific area. In the Detroit-metro area, the average commute is 10.4 miles each way.

According to the study, those living near the Detroit-Warren-Dearborn metro area were among the hardest hit, as the study revealed the number of jobs within commuting distance fell nearly 26.5% between 2000 and 2012. Along with Cleveland, Detroit lost the highest share of jobs within commuting distance, while McAllen, Texas led in creating more jobs closer to the metro area within the same 12 year time period.

Detroit and its residents are known for their resiliency, however. The Detroit Department of Transportation (DDOT) recently announced its plan to hire over 100 additional bus drivers as part of efforts to improve its service and reduce commute times.

“We are making significant progress at DDOT and we have a lot of opportunity right now for individuals who have a Commercial Driver’s License or are willing to let us train them,” said DDOT Director Dan Dirk in a written statement. “Adding 100 additional bus drivers to our team would help us significantly toward Mayor Duggan’s commitment of having DDOT meet its published schedule as soon as possible.”

During a news conference in January that unveiled the first seven out of 80 new buses the city began using, Mayor Mike Duggan vowed that city buses would regularly be on time — for the first in nearly two decades — by the end of this year.

June 3, 2015

Secretary of State Closes 5 Detroit Used Car Dealerships Pending Investigations


Michigan Secretary of State Ruth Johnson announced last week that her office has suspended the licenses of five Detroit used car dealers after finding evidence of suspicious transactions. “Most auto dealers are reputable business people, but if we discover illegal activity, we will take swift action to protect Michigan consumers,” Johnson said in a May 28 news release. “We will not tolerate businesses that take advantage of unsuspecting consumers and will hold these bad actors accountable.” The office’s investigation found that the used vehicle dealers had kept fraudulent records, had sold stolen parts and vehicles, and had misled consumers. The five dealerships in question are: A One Auto Sales, Inc., which sells used vehicles. It has been licensed since 2013. Best Price Auto Sale, Inc., which sells used vehicles. It has been licensed since 2014. Big 3 Auto Sales, Inc., which sells both used vehicles and used parts. It has been licensed since 2011. Hende Auto Parts, which sells both used vehicles and used parts. It has been licensed since 2012. Sold Auto Sale, Inc., which sells used vehicles. It has been licensed since 2011. Criminal charges were also filed against the licensee of Hende Auto Parts and people from Best Price Auto regarding stolen auto parts. There is a pending investigation regarding the possibility that Hende Auto Parts employees sought to obtain clean Michigan titles for salvaged vehicles — which would allow them to be sold to unsuspecting consumers despite being unsafe to drive. Revoking the licenses of the dealers effectively closes them for the time being. “The summary suspension, a step not often taken against dealerships, is used to protect the public,” Johnson’s press release explained. “The dealers are entitled to an administrative hearing to contest the suspension, but until then they are closed for business.” The used auto sales and repair industry in the U.S. is worth billions, with nearly $10 million in used car sales in the first quarter of 2015 alone, and repairs bringing in an estimated $58 billion each year.

Michigan Secretary of State Ruth Johnson announced last week that her office has suspended the licenses of five Detroit used car dealers after finding evidence of suspicious transactions.

“Most auto dealers are reputable business people, but if we discover illegal activity, we will take swift action to protect Michigan consumers,” Johnson said in a May 28 news release. “We will not tolerate businesses that take advantage of unsuspecting consumers and will hold these bad actors accountable.”

The office’s investigation found that the used vehicle dealers had kept fraudulent records, had sold stolen parts and vehicles, and had misled consumers.

The five dealerships in question are:

A One Auto Sales, Inc., which sells used vehicles. It has been licensed since 2013.

Best Price Auto Sale, Inc., which sells used vehicles. It has been licensed since 2014.

Big 3 Auto Sales, Inc., which sells both used vehicles and used parts. It has been licensed since 2011.

Hende Auto Parts, which sells both used vehicles and used parts. It has been licensed since 2012.

Sold Auto Sale, Inc., which sells used vehicles. It has been licensed since 2011.

Criminal charges were also filed against the licensee of Hende Auto Parts and people from Best Price Auto regarding stolen auto parts. There is a pending investigation regarding the possibility that Hende Auto Parts employees sought to obtain clean Michigan titles for salvaged vehicles — which would allow them to be sold to unsuspecting consumers despite being unsafe to drive.

Revoking the licenses of the dealers effectively closes them for the time being. “The summary suspension, a step not often taken against dealerships, is used to protect the public,” Johnson’s press release explained. “The dealers are entitled to an administrative hearing to contest the suspension, but until then they are closed for business.”

The used auto sales and repair industry in the U.S. is worth billions, with nearly $10 million in used car sales in the first quarter of 2015 alone, and repairs bringing in an estimated $58 billion each year.

June 2, 2015

Report: Detroit Home Prices Hit High Water Mark

The housing bubble burst during the beginning of the Great Recession, but Detroit homeowners were rocked by the aftershocks of the collapse for years. However, the region’s housing prices have finally rebounded to their level in January 2008, when the real estate market crashed nationwide.

For the last 45 consecutive months, metro Detroit has experienced year-over-year housing price gains. And according to the latest Standard and Poor’s/Case-Shiller Home Price index, home prices rose 4% in March compared to the year prior. Prices still remain about 23% below their 2005 peak, but those prices were most likely artificially high because of the housing bubble.

Furthermore, David Blitzer, the chairman of the index committee, does not believe the market is experiencing a new bubble effect.

“I would describe this as a rebound in home prices, not a bubble and not a reason to be fearful,” said Blitzer.

“All of this suggests that some future moderation in home prices gains is likely…Moreover, consumer debt levels seem to be manageable.”

Despite the upward trend, average wages are rising much less quickly, leading to a shrinking pool of potential home-buyers. This could mitigate additional gains over the rest of 2015.

The rise of housing prices in Detroit mirrors national trends. But so far, the increase has not encouraged many residents to put their homes up for sale. Despite the steady gains in the housing market, there are actually fewer homes being built in metro Detroit compared to a year ago, while the number of homes for sale has also fallen.

Instead, it seems some homeowners are opting to improve their homes, which could help account for the rise in values. Even simple renovations like replacing old fixtures can drive up the value of a home. For example, 71% of homeowners who replaced their garage door reported an increase in the price of their house.

According to the Case-Shiller index, metro Detroit includes Wayne, Oakland, Macomb, Livingston, St. Clair, and Lapeer counties. The March numbers are the most recent data available.

June 1, 2015
Population Losses in Detroit Have Begun Stabilizing as Michigan’s Economy Slowly Builds Up Strength

According to estimates released by the U.S. Census Bureau on May 21, Detroit’s population has finally begun to stabilize after the Great Recession. The city is still experiencing a loss in population overall, as the Detroit Free Press and The Detroit News both report, but select suburbs around the city have actually seen slight gains in population.

According to the Census Bureau, Detroit’s population numbered 680,250 in summer 2014, which was a slight decrease (by about 6,400 residents) from summer 2013 population numbers.

This number might seem high, but it’s actually been a long time since the Detroit metro area has seen population losses of such a low number. An annual loss of 6,400 residents works out to be a loss of approximately 1% of the whole city’s population.

Between summer 2012 and 2013, the city’s population decreased by just over 10,000 residents; on average, Detroit has lost about 24,000 residents per year during the 2000s, primarily because of the collapse of the auto industry during the Recession.

This positive trend isn’t just limited to Detroit, according to economists. It’s expected that 2015 will be the strongest year of economic growth globally — and certainly in the U.S. — after nearly a decade of economic woes following the Recession.

The financial crisis hit Detroit residents particularly hard, and the loss of income caused many residents to relocate.

According to the latest data, the specific towns and neighborhoods in Michigan that have seen the most growth include towns close to the cities of Detroit, Lansing, and Ann Arbor. The tri-county area, several Oakland County neighborhoods, and the Macomb and Washington townships have all seen the most growth, while Michigan’s older communities continued to see losses.

Regardless of these numbers, Detroit still remains the 18th most populous city in the country and local officials are optimistic that it will continue to see gains.

“We have seen a significant slowing of people leaving the neighborhoods, and it will continue to improve,” stated Mayor Mike Duggan. “When we talk a year from now, the numbers will look even better.”

May 29, 2015

Detroit Mayor Proposes Program To Lease Out 1,000 Vacant Lots to Neighborhood Groups


Mayor Mike Duggan recently announced a plan that would allow thousands of vacant lots throughout the city of Detroit to be leased out to local residents. According to reports from the Detroit Free Press and Livingston Daily, Duggan made his proposal at the national Reclaiming Vacant Properties conference at the Detroit Mariott Renaissance Center, with the intention of starting the program as early as this summer. Under the program, vacant city lots would be sold off to residents for a lease period of three years, for $25 per year, so long as a neighborhood block club approves the sale and agrees to help maintain the aesthetic quality and safety of the lots in the immediate area. According to the Detroit Free Press, Duggan’s program “piggybacks on existing programs” which allow the city to sell side lots to city residents, and to auction off houses that have been vacated due to unpaid taxes. Out of the 43 million Americans that are forced to relocate each year, the Detroit Land Bank Authority has seized and auctioned off 320 houses — although there are still many empty homes that haven’t been auctioned off yet. The city of Detroit has filed about 1,000 lawsuits against owners of nuisance properties throughout the city so far, with permission from local judges (or from the lot owners themselves) to seize the properties. Once the lots are sold off to neighborhood clubs, the local block clubs will sign an agreement with the city that each lot is used for activities that are “compatible with the neighborhood.” There doesn’t appear to be any plan for what will happen to the lots after the three-year-lease period is up, but if the program is successful, it seems likely that the lots will continue to be used for things like community gardens and parking spaces.

Mayor Mike Duggan recently announced a plan that would allow thousands of vacant lots throughout the city of Detroit to be leased out to local residents.

According to reports from the Detroit Free Press and Livingston Daily, Duggan made his proposal at the national Reclaiming Vacant Properties conference at the Detroit Mariott Renaissance Center, with the intention of starting the program as early as this summer.

Under the program, vacant city lots would be sold off to residents for a lease period of three years, for $25 per year, so long as a neighborhood block club approves the sale and agrees to help maintain the aesthetic quality and safety of the lots in the immediate area.

According to the Detroit Free Press, Duggan’s program “piggybacks on existing programs” which allow the city to sell side lots to city residents, and to auction off houses that have been vacated due to unpaid taxes. Out of the 43 million Americans that are forced to relocate each year, the Detroit Land Bank Authority has seized and auctioned off 320 houses — although there are still many empty homes that haven’t been auctioned off yet.

The city of Detroit has filed about 1,000 lawsuits against owners of nuisance properties throughout the city so far, with permission from local judges (or from the lot owners themselves) to seize the properties. Once the lots are sold off to neighborhood clubs, the local block clubs will sign an agreement with the city that each lot is used for activities that are “compatible with the neighborhood.”

There doesn’t appear to be any plan for what will happen to the lots after the three-year-lease period is up, but if the program is successful, it seems likely that the lots will continue to be used for things like community gardens and parking spaces.

May 27, 2015

Category: featured

DDOT Pledges to Improve Service Amid Even Longer Commute Times

Secretary of State Closes 5 Detroit Used Car Dealerships Pending Investigations

Report: Detroit Home Prices Hit High Water Mark

Population Losses in Detroit Have Begun Stabilizing as Michigan’s Economy Slowly Builds Up Strength

Detroit Mayor Proposes Program To Lease Out 1,000 Vacant Lots to Neighborhood Groups