Detroit Housing Market Hits Rock Bottom

In Detroit, Michigan, the recent market crisis over subprime mortgages has led to the most foreclosure filings in the country. Some foreclosed homes are even selling for less than the cost of a used car, an irony not lost on Motor City inhabitants.

Detroit was once an icon of the American landscape, now it’s the poorest big city in the United States. It has lost more than half of its population in the past 30 years, and a third of its inhabitants live in poverty.

The Motor City’s troubles are intricately tied to the troubles of the automakers that once bolstered its middle-class status. The big three—Ford, GM, and DaimlerChrysler—have all seen foreign competitors eat into their bottom lines as companies like Honda and Toyota continue to create reliable, fuel-efficient—and popular—cars.

These financial woes have led to widespread factory layoffs in and around Detroit, contributing to a profusion of defaulted mortgages and resultant foreclosure filings.

Detroit’s murder rate is one of the highest in the country, making the Motor City a yearly contender for the disreputable title of Murder City Capital of the United States. At the same time, the state of Michigan has seen about 300,000 of its jobs disappear since the year 2000. As the citizens of Detroit cope with the economic and social ills of their city, at least Michael Thomas, the city morgue’s body collector, can say his job is secure.