A new survey from Detroit shows that prices of homes are rising in the bankrupt city. Although this seems promising, the new information actually sheds light on a yawning gap between the suburbs and downtown area.
According to the S&P Case-Shiller home price index released on Tuesday, prices of homes in Detroit rose almost 17 percent in July when compared to the same time in 2012. Since January of last year, the area has posted reports of increases almost monthly, CNN reported.
But the prices of these houses are still almost 30 percent below their highest point, which the city of Detroit reached in 2005.
CNN stated that these top numbers don't even scratch the surface on the bigger picture.
"[Greater] Detroit is a split personality, because where there's activity, it's in the suburbs," one of the study's authors, David Blitzer, said. "It's not in the center city. The center city population is down over the last several years. Not much of the comeback has been in Detroit."
Blitzer explained that in the city itself, the population has lost a quarter of its residents in the past 10 years. Unemployment is still well over 10 percent, and the city recently filed for bankruptcy. The survey, Blitzer said, didn't highlight these aspects of the former auto industry capital.
CEO of the Detroit Regional Chamber Sandy Baruah said that the area is "really not that different from the rest of the country," where citizens also experienced hard times, especially in recent years. Baruah made a point to stress the importance of the increases in home prices.
"We're not surprised to see the continuing growth," he said.
He also mentioned that although some neighborhoods are riddled with abandoned houses, some areas downtown near the university are heavily populated. Some even boast 98 percent occupancy.
