Having now spent the majority of my life in the Midwest, I can say that I am proud to be associated with the region. People in the Midwest have grit. They are not narcissistic and their family is the most important thing in their life. Two cities that display the Midwestern persona are Chicago and Detroit.
Separated by only 4 hours across I-94, the cities are worlds apart. According to www.city-data.com, using 2007 statistics, Chicago has an average income of $45,505 while Detroit is $28,097. Chicago has an average home price of $286,800 while Detroit is $100,351. 33.8% of Detroit lives in poverty compared to 20.5% for Chicago. The murder rate per 100,000 in Detroit has averaged 41 over the last 10 years, more than twice the rate in Chicago (19).
With this post and my next one I am going to compare Detroit and Chicago, two cities that at one time were similar, but have since grown very much apart. I am going to highlight some of the problems I see with the City of Detroit and the Southeastern Michigan as a whole. I am going to break up my analysis into two posts, because I have many opinions on the subject. I will apologize now if I offend anyone, please understand that these are only my personal opinions.
Let’s explore the population of each city. Today Chicago has a population of 2,853,000 people (density of 12,569/sq-mi), and Detroit has a population of 912,000 (density of 6,378/sq-mi). Each city reached their peak population in 1950 before the birth of suburbs. Since 1950, Chicago has lost 21% of its population while Detroit has lost a staggering 51%.
Historical Population Density
As you can see from the chart above between 1950-1990 Detroit and Chicago experienced similar population loses, but since 1990 Chicago has actually added resident since 1990 (+2%), while Detroit has continued in a death spiral(-11%). The death spiral will not turn around anytime soon as new construction single family permits over the last 12 years have averaged 175 per year in Detroit and 1,000 in Chicago.
It’s NOT Jobs within the City?
From 1990 – 2000 Chicago workers LOST close to 70,000 jobs within the city while Detroit workers lost a lower percentage and only 15,000 jobs. Yet the population of Chicago grew by 2%, while the population of Detroit shrunk by 11%. The reason for this phenomenon is that many more Chicago workers are now commuting from the city to a job in the suburbs.
I am reminded of my niece, Allison, who lives in downtown San Francisco near the baseball stadium, yet works for HP about 45 minutes away in the suburbs. Like many young urban professionals she and her fiance enjoy living in an urban setting, have no kids, and do not have time to worry about the upkeep of a house. They can walk or take a cab to a local restaurant and do not have to worry about the legal consequences of having to return home if they have a couple of adult beverages.
My niece Allison’s story would be rare for Detroit. Very few young professionals live in the city. The people in the suburbs only go to Detroit to see a ball game, show, or visit a casino. Young professionals, like my niece who has an engineering degree from Michigan State, are leaving this region in droves.
I grew up in the Baltimore-Washington Suburbs and have through my business travelled to most of the major cities in this country. I can tell you I have never been to an area as dysfunctional as Southeastern Michigan. The City of Detroit and the Suburbs surrounding it do nothing but bicker with each other.
There is so much distrust for the suburbs that a suburbanite, Robert Thompson, who was educated in Detroit, was going to donate $200 million dollars to the Detroit Public Schools was told to get lost because he wanted too much control of how his money was going to get spent. More recently, this region almost lost its last showpiece event, The North American Auto Show, when the city fought with the suburbs and state over the much needed redevelopment of the Cobo Center.
I know many of my neighbors in the suburbs, would like to forget about the city of Detroit. But, the city is the heart of this area. Like a human being cannot live without a heart, this region cannot survive without a healthy city of Detroit. It takes my suburban neighbors working with the city, not being elitist.
Most importantly, it will take leadership in the city government that accepts responsibility, creates a safe atmosphere, and encourages immigration. I love this area, and I sincerely hope in my lifetime we can see a renaissance in Detroit. But hope is not a strategy, so in my next post, I am going to offer some ideas I have on the issue.