Hardest Hit Fund Data

Treasury begins freeing up more funding for blight removal soon, the citys efforts to pull down
rundown, abandoned structures could continue at its current pace, with as many as 15,000
properties to be demolished by 2018
WASHINGTON A massive federal spending bill expected to be passed this week includes a
provision allowing the U.S. Treasury to transfer billions of dollars into a fund which has already sent
or promised $130 million to Detroit to tear down thousands of blighted buildings and is expected to
provide at least tens of millions more.
The U.S. House Rules Committee on Wednesday evening sent to the full chamber a so-called
omnibus bill to fund government through the next fiscal year. And tucked into a section of the $1.15trillion bill is a provision allowing Treasury to add up to $2 billion more for its Hardest Hit Fund, a
$7.6-billion program which was set to expire at the end of 2017 but could, under the proposal, also
be extended.
It was amazing, said Duggan, noting that independent studies have shown that efforts so far to pull
down more than 7,000 blighted buildings in Detroit have led to significant increases in property
values. He declined, however, to say how much he thinks the city could get under the change, which
will be up to the state and the Treasury Department.
Housing Data
The latest Standard & Poor's/Case-Shiller Home Price index shows that while metro Detroit housing
prices are back to fall 2007 levels, they're still about 18% off the region's price peak of late 2005 and
early 2006, before the economy slowed.
Sale prices are finally at or close to their prerecession levels in most areas and
fewer homeowners are underwater on their mortgages. Those factors pushed total sales for existing
homes in Wayne, Oakland, Macomb, Livingston and Washtenaw counties to more than 66,600 for
most of 2015 the highest level since the recession, according to an extensive review of housing
sales data by the Detroit Free Press.
The median sales price last year for existing homes was $206,900 in Washtenaw County, $206,000
in Livingston County, $179,000 in Oakland County, $128,500 in Macomb County and $90,000 in
Wayne County, according to the data collected from local deed offices.
A ZIP code by ZIP code analysis shows the region's greatest price increases since 2009 have
typically occurred in markets such as Detroit, which are rising from extremely low sales prices, even

below that of many used cars. But home prices in areas including Southfield, Howell, Oakland
Township, South Lyon, Highland Township and Gregory also saw big price gains in the past six
years.
The city of Detroit also was home to a ZIP Code that saw a rare sales price drop a 64% decline to
$15,000 since 2009 for a home in the 48217 southwest neighborhood that has been dubbed
Michigan's most polluted ZIP code.

An analysis by the Free Press of sales data for existing homes from 2009 through most
of 2015 shows housing prices are finally back to prerecession 2007 levels across much of southeast
Michigan, with some of the most dramatic gains in Oakland Township and in pockets of Livingston
County such as the Howell and Gregory areas.

Nearly every community in southeast Michigan saw prices bounce back at least 20% in those six
years. Birmingham saw median prices rise more than 50% to $305,000 from $200,000. Houses in
Rochester Hills sold for $261,2650 last year, up 47% from 2009.
Real estate insiders attribute the region's home price increases to the state's improving economy,
better consumer confidence, still-low mortgage rates and still-tight inventories of move-in-ready
homes, especially entry-level houses priced around $200,000 and under.

One fairly new trend that took off in 2015 involved buyers who snapped up modest ranches or
bungalows, priced $150,000 to $200,000 and within walking distance of popular suburban
downtowns in Royal Oak, Ferndale, Northville, Plymouth or Berkley. They then bulldozed the small
house to build a larger new house for around $500,000 to $800,000 that ended up filling much of the
lot.
The average value for a new single-family home construction permit in metro Detroit was $281,438
in November, or 7.5% higher than in 2014, according to the Home Builders Association of
Southeastern Michigan. The number of new-home permits, however, was down 8% in the first three
quarters of this year compared with the same period last year and far below prerecession levels.
http://www.freep.com/story/money/business/michigan/2016/01/09/michigan-home-prices-keeprising/78019058/
Developers estimate the greater downtown needs 3,000 to 5,000 new rental apartments enough
to keep construction crews busy for the next few years at least. Beyond projects already under
construction, there are many others close to breaking ground. And the list could grow as the M-1
Rail line nears completion in about a year and the Ilitch family's hockey arena and entertainment
district continues to take shape in northern downtown.

As recently as 2011, major employers such as the Henry Ford Health System and Wayne
State offered employees cash incentives to move into their neighborhoods. More than 1,000 people
took advantage of the Live Midtown and Live downtown incentives programs.
Those incentives helped to fill up then-available apartments. Would-be tenants
started complaining about waiting lists at existing buildings including the Kales on Grand Circus
Park. Rents began rising, too, from around $1.25 per square foot to at or near $2 today. Some of the
newer projects now under construction to open in mid-2016 or later are priced at about $2 per
square foot as the market gets stronger.
http://www.freep.com/story/money/business/michigan/2016/01/02/detroit-midtown-downtowngilbert/78027012/

Job and Unemployment data

Michigan added 10,000 jobs in December, but its unemployment rate held steady at 5.1%, as new
entrants continued to flow into the labor force drawn, perhaps, by the improving outlook for jobs.

"In 2015, payroll jobs rose in the state for the fifth consecutive year while Michigan's unemployment
rate continued a downward trend, falling for the sixth year in a row."
The U.S. jobless rate was unchanged from November to December, at 5%.
For all of 2015, state data show that Michigan added about 7,500 jobs each month, or about 90,000
for the year. Since the waning of the Great Recession in 2010, Michigan has added more than
400,000 jobs, but it remains a few hundred thousand shy of its pre-recessionary peak years.

About half of Michigan's 2015 job gains were recorded in just two sectors manufacturing and
education and health services. The rest of the gains were scattered among several other sectors,
including construction.

http://www.wzzm13.com/news/michigan-unemployment-rate-holds-steady-51percent/22037994