September 25, 2024
Detroit Future City (DFC) released “Making the Middle Class: Leveraging Detroit’s Neighborhoods to Build a Middle-Class City” which examines key factors related to becoming a middle-class city, including population change, income and education, housing, and neighborhood quality. “Making the Middle Class” makes the case that increasing Detroit’s middle-class population, which once defined the city, is vital to its future sustainability.
The report builds upon DFC’s report “Growing Detroit’s African American Middle Class” which inspired local and national attention on considering how growing the African American middle-class is key to growing an equitable and prosperous city.
“Detroit must focus not only on the issues that are confronting the city today, but also progress toward becoming a middle-class city,” said Anika Goss, DFC CEO. “That is why we are advocating for new policies and investments that move Detroiters into the middle class and keep them there. A strong middle class will fuel economic growth, foster community stability and pave the way for sustainable progress in Detroit and throughout the region.”
“Making the Middle Class” is a publication of DFC’s Center for Equity, Engagement, and Research, which worked with a diverse advisory group of community stakeholders to provide insights into the data in this report to form the foundation for policy recommendations to guide Detroit on its path to creating neighborhoods where both current and future residents thrive.
Key to the Middle Class
Detroit is constantly changing and the past decade in the city has been no exception. As Detroit has seen progress towards becoming a desirable middle-class city, DFC feels it is important to understand who is and is not participating in the city’s growth.
Recently, Detroit’s population has seen a promising increase of 2,000, making it the 26th most populous city in the country with over 630,000 residents, but it has still lost 67,000 residents since 2012, driven by Black population decline. Nearly 100,000 Black residents have left the city over the past decade, and a growing share of the region’s Black population lives outside of Detroit. At the neighborhood level, 28% of Detroit’s neighborhoods have seen an increase in population while 8% have seen a small decline and 64% continued a long-term decline.
Education and income are intrinsically linked, and core contributors to financial stability and security for Detroiters. In Detroit, incomes remain low with Black and Latino/Hispanic income stagnating while white income increases, possibly reflective of the white population moving into the city and the growing share of white residents with a bachelor’s degree or higher. On average, incomes are higher in the suburbs compared to Detroit across all ethnic groups.
The two fastest growing job segments are those that require a bachelor’s degree or higher and jobs that do not require a bachelor’s degree but also do not pay wages that would allow an individual to enter the middle class. With just 13% of Black residents and 16% of Latino residents holding a four-year degree, middle-wage jobs that do not require a four-year degree are critically important for moving the city forward. Key sectors offering these types of jobs were outlined in DFC’s 2022 “Middle Wage Jobs” report.
Another vital component of a middle-class city is homeownership rates. Owning a home provides stable housing and the opportunity to build equity and wealth through appreciation of the home. Detroit is currently split evenly between homeowners and renters. Mortgage lending has made a gradual return to the city since the Great Recession, with mortgage originations rising from 220 loans in 2012 to 3,211 in 2022, driven by an increase in Black borrowers. With nearly half of Detroiters being renters, it is also important to note that rental affordability remains an issue. While affordability challenges are primarily driven by income, the median gross rent in the city has also increased since 2014 rising from $893 to $990 in 2022.
The report also notes quality of life issues including blight and vacancies, public safety, taxes and insurance, and schools, continue to impact whether people choose to leave or not move to Detroit. The city has one of the highest vacancy rates in the country and the fourth highest rate of pedestrian fatalities in the country.
“Overall, substantial progress has been made as Detroit continues working to become a thriving, resilient middle-class city, but more must be done,” said Ashley Williams Clark, DFC Vice President of the Center for Equity, Engagement and Research. “We need to see stakeholders align on a vision for the city that places moving residents into the middle-class at the forefront. This is not only important for the residents of Detroit but is a pathway for our city to compete and grow economically.”
Investment opportunities
In a section entitled “we cannot do this alone,” DFC points out there are private investment, and state and federal policies that impact Detroit, and collaboration and assessment is required by all government entities and agencies to ensure programs, investments, and policies are aligned and leveraged with the broader goal of creating a resilient middle-class Detroit.
Investments focused on educational outcomes for the city’s youth, ensuring that the city’s students are prepared and ready to attend college and enter the workforce prepared to succeed will allow more
residents to mobilize into the middle class. Additionally, workforce development initiatives must focus not only on the city’s existing workforce but also the workforce of the future.
To view the “Making the Middle Class” report, visit www.detroitfuturecity.com.
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