Report Finds Detroit is Ready for New Investment

The DrillDown estimates the total population in the City of Detroit at 850,259. That’s 11 percent below the Census 2000 population estimate of 951,200 and 7 percent below the 2009 traditional market estimate of 912,615.
In total, the DrillDown finds an aggregate household income of $17.4 billion, of which roughly $650 million or 4 percent may be attributed to informal economic activity. The DrillDown aggregate income exceeds Census 2000 and 2009 traditional market estimates by 24 and 27 percent, respectively.
Market Strength

Average household income in Detroit is estimated at roughly $57,000. That’s approximately 37 percent above the Census 2000 estimate of $42,000 and 32 percent above the 2009 traditional market estimate of $43,000.
The DrillDown estimates median income in Detroit at roughly $42,000. That’s 36 percent above Census 2000 figures and 27 percent above the 2009 traditional market estimate for the study area.
Income density in Detroit is calculated at $198,087 per acre, which is 4.2 times that of the greater metro area ($47,255), according to STI: PopStats.
Sizable average income change is seen among new homeowners (those who purchased in 2008), especially in key neighborhoods such as Downtown Central Business District, where the DrillDown estimates income at $144,290, Indian Village at $117,833, and Midtown at $156,656. Those estimated household incomes are more than twice the average of new homeowners’ citywide, or $54,000.
Market Stability

The DrillDown estimates 50 percent of residential units in the city are owner-occupied. In the Rosedale master plan neighborhoods, the owner-occupancy rate is as high as 77 percent.
Market Potential

Retail leakage describes the gap between retail expenditures occurring within the neighborhood and the retail spending of residents themselves.

Detroit residents spend an estimated $4.9 billion on retail services annually. Approximately 30 percent of that, or $1.5 billion, is spent outside of the city.
The existing 81 full-service grocery retailers currently capture 69 percent of Detroit households’ grocery expenditures. Annual grocery leakage, estimated at $200 million, could potentially support an additional 583,000 square feet of additional grocery retail space.
Similarly, the DrillDown analysis reveals sizable demand for apparel retailers and restaurants. Apparel leakage, estimated at $321 million, represents roughly 60 percent of all expenditures on apparel retail services. Restaurant leakage, an estimated $162 million, represents roughly 21 percent of residents’ restaurant expenditures.
The DrillDown study was managed by Detroit Economic Growth Corporation and funded by the generous support of the Community Foundation of Southeast Michigan, the Hudson Webber Foundation, The Kresge Foundation, and the New Economy Initiative of Southeast Michigan. CoreLogic, SAS Institute Inc., and ESRI also contributed data, software and expertise.

“Data Driven Detroit is pleased to be a partner in this effort, as it truly symbolizes our mission of providing accurate and innovative data products to the community,” said Kurt Metzger, director of Data Driven Detroit. “The DrillDown’s unique methodology allows Detroit neighborhoods to represent themselves through information that is unavailable elsewhere. Furthermore, the willingness of Social Compact to share its methodology with D3 will allow Detroiters to receive DrillDown profiles for any user-defined neighborhood in the city.”

The full 2009 DrillDown Report can be downloaded from any of the partner websites:

www.degc.org/local-data.aspx/demographics
www.datadrivendetroit.org
www.socialcompact.org
Organizations that would like a customized DrillDown report may request one by visiting http://www.datadrivendetroit.org and clicking on the “AskKurt” button.

About Social Compact

Social Compact is a national not-for-profit corporation led by a board of business leaders whose mission is to help strengthen neighborhoods by stimulating private market investment in underserved communities. Social Compact accomplishes this through its Neighborhood Market DrillDown analytic tool, developed to accurately measure community economic indicators, and provides this information as a resource to community organizations, government decision makers and the private sector. Social Compact is at the forefront of identifying the market potential of underserved neighborhoods and believes that a public private partnership that involves community members and leverages private investment is the most sustainable form of community economic development.

About Detroit Economic Growth Corporation

Detroit Economic Growth Corporation is a non-profit organization that serves as the lead implementing agency for business retention, attraction and economic development initiatives in the city of Detroit. DEGC is led by a 60-member board comprised of business, civic, labor and community leaders. Its 35 professionals provide staff services for key public authorities that offer tax credits and other forms of financing for projects that bring new jobs or economic activity to the city. Among them: the Downtown Development Authority (DDA), Detroit Brownfield Redevelopment Authority (DBRA), Economic Development Corporation (EDC), Neighborhood Development Corporation (NDC), Local Development Finance Authority (LDFA), and Tax Increment Finance Authority (TIFA). The DEGC also provides planning, project management and other services under contract to the City of Detroit.

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Contact for Social Compact:
Alyssa Lee, Interim President and CEO
202-547-2581    | alee@socialcompact.org

Contact for DEGC:
Bob Rossbach
313-402-9831 | bob@rossbach.tv