Detroit spends $9 million on 30 homes.

Quote:

Originally Posted by Wesley Mouch

So in other words, the cost of Detroit land is actually negative. So your $180,000 house [[1,200 s.f. @ $150/ft.) becomes worth $75,000 in Detroit, but $260,000 in Lathrup Village.

Lathrup:
$180,000 house value
$50,000 land value
$230,000 total value in place

Detroit
$180,000 house value
$105,000 NEGATIVE land value
$75,000 total value in place

Thus, to get people to live in Detroit, you really do need to pay them.

your confusing "cost" with "value".... there is no "negative" land value.... its zero, the cost of the Detroit home may be $180,000 but the market value is $75,000

likewise, even in Birmingham, someone can spend millions on gold this, real fresco plaster that, peruvian granite, kokobolo hardwood flooring, etc etc... doesn't mean that whatever costs they sink into a place is going to equate to higher value... most neighborhoods are capped by what you can buy next door....