Decline-induced displacement: the case of Detroit

Abstract

ABSTRACT Research on residential displacement typically takes up the topic when it is an expected or possible outcome of gentrification. Drawing on a case study of Detroit, we find evidence of displacement pressures driven by the collapse of home prices, not their escalation. These pressures stem from the intersection of forces operating at multiple scales, including the financialization of housing, austerity regimes of the local state, and the expansion of predatory real estate investment. Our study examines displacement pressures in Detroit since the subprime lending crisis, which triggered a wave of mortgage foreclosures. We then examine the causes and effects of the subsequent tax foreclosure crisis in Detroit and the implications of increased real estate speculation fueled by growing foreclosure inventories. We argue a focus on these varieties of displacement offers a more complete understanding of the ongoing and highly racialized restructuring of US cities following the financial crisis.