Property speculation has significantly impacted Detroit over the past decade. The visible effects include deteriorating properties and vacant historic buildings. Additionally, there are measurable consequences such as lost tax revenue and large-scale publicly funded demolitions.
Following the housing market collapse, property speculation became prevalent when Wayne County auctioned thousands of tax-foreclosed properties at low prices. Recently, property values have increased, along with the cost of buying at these auctions. Some early buyers may now be considering selling.
Eric Seymour, an assistant professor at Rutgers University who researches Detroit's property speculation, noted that the city's percentage of speculative activity is notably high compared to other U.S. cities. He stated, "Speculation is often correlated with historical processes like racial disinvestment and segregation," adding that "Detroit is such a highly segregated, racialized place, which is one reason why there’s so much of it."
