Lockhart

English 1102 Fast Draft

I’ve added most of my information without citing, so I’ll be working on that. I also will add more information and photos for better clarity. I’ve take a screenshot of all the webpages and the text for each webpage is directly below the image.

Page 1

Introduction: Just last Christmas, my parents and I took a road trip to South Carolina to visit family. While on the road, we passed fields of wheat, cotton, tobacco, and so much

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more. But, I wasn’t interested in any of that. I was overwhelmingly fascinated with the houses and buildings we passed along the way. I suppose this fascination is the reason why I yearn to be an architect! During our trip, I witnessed a ton of abandoned, run-down houses. My mind began to wonder, “How are these houses affecting South Carolina’s real estate market?” “Would the property values increase if these run-down houses were removed?” “What would happen to South Carolina’s economy if every abandoned building was gone or fixed up?” “Who would this appeal to?” So, while on the road, I began researching. I found an article that really caught my eye. Dave Bing, mayor of Detroit, had begun his demolition on 10,000 buildings with a 20 million dollar budget. Exciting, right? Well, Mayor Dave Bing faced many issues with historical preservationists and asbestos. Though the project was a success, I thought to myself: Is there a way the Mayor could have taken material from some of the demolished buildings and recycle it? Could he have set a part of the budget to restore some of the historical buildings instead of tearing them down (to keep those historians happy)? What more exactly could he have done to help Detroit’s economy and preserve our environment?

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Why YOU Should Care:

Imagine there is an old, deteriorating house on the end of your street. Ten years ago when your family moved to this great neighborhood, the old house was in the hands of an elderly caretaker, but that caretaker passed away. Soon there after, the house was given to the bank. No one stepped up to the plate to maintain the house, so the roof caved in during a snow blizzard, the paint has chipped, the wood rotted and gave in, the pipes rusted and became a home for the neighborhood rodents, and every now and then, a squatter has been arrested for residing in the home

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unlawfully. This house now provides your street with danger, and let's not mention the eye-sore it offers to potential buyers coming to your neighborhood. What would be best to do about the house for your family and the other families on your street?

Now imagine this very scenario, or scenarios similar, as a much larger issue in a region like Detroit. Abandoned buildings can cause dangerous situations in neighborhoods all around the United States, but if these buildings were demolished or restored, the value of neighborhoods surrounding those buildings could potentially increase due to the improved safety and the lack of deterioration.

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Who All is Affected?

Everyone, indirectly, is affected by foreclosures or abandoned buildings. We all see these buildings and these houses on our way to work, to school, and back home. We witness houses deteriorating, but we also witness that one house on that one street that has been restored. It looks great, right? We are all concerned about the potential dangers abandoned buildings pose to our families and our neighborhoods.

Directly, however, there are specific people and companies that are mostly affected. Nationally, "86 of the largest metropolitan areas of the country saw increases in foreclosures..." from 2007 to 2008. That was roughly 15 million people affected by foreclosure. In Detroit alone, nearly five percent of all residential properties were in foreclosure. Don't let the small number "five" confuse you. Five percent employment is actually five times greater than the national average of foreclosure!

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So why is Detroit facing so much foreclosure? Daren Blomquist of RealtyTrac suggests Detroit’s foreclosure crisis is due to a "loss of higher-wage jobs" because of General Motors economical plummet in the early 2000s. In fact, since 2000, Detroit has lost more than 150,000 jobs because of decreasing the auto parts industry.

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How Will This Change Lives?

Thousands of people went through a recent foreclosure, but also take in consideration the abandoned houses that have been auctioned off for years. Some of these particular houses can be bought from the bank for $1 when they are not undergoing auction. In 2012, 20,041 properties were auctioned for a minimum of only $500, and only 12,534 sold. The remaining 7,920 unsold houses stay within the banks care. Each of the houses that are unsold go back to auction, and many are never sold. What are these abandoned houses doing to the value of their surrounding neighbors? A recent study taken place in Indiana during 2010 assessed what impact abandoned homes has on the surrounding real estate. The study concluded that the relationship between the abandoned property and its value was always negative; therefore, the worse the condition of the property is, the worse the value of that particular property, any improvements made on the property, the adjacent properties, and improvements on the adjacent properties. Likewise, if more vacant properties increase on a particular block, then each property value worsens. Though this is devastating results, the study also verified "The poor condition of the land in the [abandoned property] has a stronger correlation with decreasing values for adjoining land and improvements than the poor condition of

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land in the demolition [property]. This could be a sign of greater disinvestment in the properties adjoining the [abandoned] properties.”

So this means that demolishing a building is better for the economy than leaving it vacant and unused, right? Wrong. It depends on the property and in the region in which the property resides. Brian Hickey, president of Teardowns.com states that "... if surrounding houses are selling for two to three times more than a particular property, it is usually means for demolishment." Furthermore, "previous research has shown that demolishing vacant and abandoned houses improves public safety and health in neighborhoods, … protects the value of other properties nearby and can help to keep a neighborhood from heading into decline, [and] … mollify voters living near a vacant and abandoned house that has fallen into disrepair." In other words, demolishment increases safety and maintains the values of other properties. However, there are disadvantages to demolishing a house. Some of these houses may be historical, and it is often difficult for a neighborhood to sacrifice such a relec. Also, there is always going to be a cost to demolish buildings. Lastly, demolishment does not always improve the value of the connected property or the neighborhood. In fact, demolishment rarely improves the value of other properties right away. However, "... research found that land adjoining [abandoned] properties deteriorates more over time than land adjoining demolition properties." This is a positive factor for demolishment! However, maybe the short-term value of a demolition could improve by recycling the demolished building's material. This could perhaps justify for the short-term value issue.

       Though demolition is an option for many abandoned buildings, there are also many vacancies that are in a well enough condition to be restored. How might restoration add-up as an alternative to demolishment? Though the budget for a restoration is often large, it's not impossible. However, Mike Theide Jr., project manager and co-owner of Bethesda Contracting suggests it is always wise to add an extra five percent of the budget for unknown issues. Furthermore, "Historic preservation activities are cost-effective tools that may be used to leverage private capital, create jobs, revitalize neighborhoods and business districts, and stimulate a wide range of other economic activities." Therefore, restoration has a positive impact on the value of an abandoned building and the properties surrounding.

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Important People, Significant Contributions

"No Property Left Behind" - Jerry Paffendorf

Jerry Paffendorf was born and raised in Detroit. He has witnessed all of Detroit’s success and struggles, and he is certainly not blind to all the foreclosures in Detroit today. He has created a project named "No Property Left Behind" where all the properties unclaimed in auctions each year are bought and used "go back to good local use." He states, “I know there are people out there in the world who will help pay for and perform deconstruction on the structures that are too far gone, while helping secure genuine neighborhood assets. There are people who will do environmental cleanup, who will help create parks in new open spaces, and who will help solve other problems if Detroit actually advertises them clearly and invites crowd sourced solutions.”

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The Answer

Through my research, I've discovered Detroit's economical struggles since the early 2000s due to cut backs in the automobile industry. Detroit is still facing the effects its foreclosure crisis, and abandoned homes crowd the city. I've concluded, through my research, that the abandoned homes in Detroit must be taken care of to improve Detroit's economy and safety. In order to do so, these abandoned houses should be either demolished and recycled or restored to their former glory.

Aside from my own findings, I have found inquiries regarding to Detroit's failing economy. Some researches believe demolishing abandoned buildings in Detroit is not cost-effective and will do hardly anything to strengthen the economy. However, I feel these researchers haven't taken in account the benefits of recycling these abandoned buildings to either sell or reuse in other construction projects.

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What I’ve Come to Understand:

Detroit is in an upheaval of financial instability. It’s all on the news and in articles in the papers and on the web! Research has said that the main reason for the foreclosure crisis is General Motor’s financial struggle. Detroit’s economy was built around General Motors, so when GE started struggling in our economy, so did Detroit. Many people were laid off from GE and various automobile services in order to cut back financially. This put a strain on Detroit’s families. They could no longer afford to pay their mortgages, and voila! Thus the foreclosure crisis. So my research pertaining to foreclosures in Detroit dates back to the economical struggle of GE in the early 2000s.

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       Through my research, I’ve formulated my own knowledge of Detroit. The city is still thriving, due to GE, but obviously, it’s not “booming” like it used to. What has been said is mostly correct, but what I find difficult to read are the articles that leave little to no hope left for Detroit. I believe with research and smart planning, the desire and ability to reside in Detroit can be possible in the near future.

       Before, I didn’t understand that my project was so broad. Obviously, the answers I’m seeking are on a city-to-city basis. I can’t generalize the economy, the number of foreclosures, the impact of restoration, and the impact of demolishment on every city in the United States. I have to study cities individually because every city has its own economical history, and no two cities are a like. I also now know that in some neighborhoods, demolishing a building has little to no impact on that particular neighborhoods value verses living an abandoned building just sitting. In the long run, though, a demolished building, research has proven, will benefit a neighborhood more. I believe, though, that demolishing a building could play in to more factors than just its neighborhood’s value. Although it may not have much impact, I believe the positives outweigh the negatives regarding to other factors. For example, the abandoned building would no longer be a hazardous eyesore, and all the material from that particular building could be recycled to help preserve our environment.

What I’m Still Curious About:

I still want to know if restoration and demolishing is really a great option in Detroit itself. Though I have much more research to do, my findings thus far have articulated both positive and negative impacts of restoration in Detroit and demolishment in Detroit. I want to know where are the prime areas, where are the areas that are most sought after, in Detroit that could use some historical, or non-historical, restoration. In other words, I want to know where restoration would benefit the most. I also want to know where and how demolishing buildings (that desperately needed it) might be most beneficial in Detroit. The foreclosure crisis in Detroit is no laughing matter. There are tons of foreclosed and abandoned buildings. It seems to me these said buildings are only deteriorated Detroit’s economy more and more. Though in Indiana, research showed that demolishing abandoned, run-down buildings has hardly any effect on the value of the neighborhood, I feel that that the situation may be different in Detroit. I also want to know how Detroit can strengthen its economy outside of the housing market as to bring more business, more jobs, and hence, more people and families.