The thousands of empty homes and buildings in bankrupt Detroit, Michigan are being purchased at rock bottom prices, with many of the buyers being Chinese investors that cannot pass up the unbeatable prices.
With homes that are selling for only $10,000, the Motor City is currently the No. 4 destination in the U.S. for housing investors from China.
Big spenders have snapped up some of the most iconic building in Detroit.
Commercial real estate, factories and upscale sections around Detroit within proximity to very good schools are all available said a manager of international business for SouFun a Chinese online real estate agency.
The company, which lists dozens of photos of homes in Detroit that have been abandoned on its online site, says it had received over 1,000 inquiries by telephone in July of 2013 and calls have continued to come in since.
Interest from China increased following a report on television that claimed homes in Detroit could be purchased for just the cost of buying a pair of shoes.
Following that program, a user posted on Weibo, which is like Twitter, 700,000 people, clean air, quiet, no pollution, and democracy, what is everyone waiting for. Responses by the millions were generated from that comment.
The cash coming into Detroit is a welcome sight. Earlier in November, a ruling in bankruptcy court approved a restructuring of the $18 billion in debt of the city to end a contentious and costly chapter of the long running decline financially of the city.
Once amongst the best manufacturing cities across the globe, with the highest income per capita in the U.S. many of Detroit’s homes and buildings now are derelict and empty. Officials are looking toward China to help salvage the abandoned city.
Rick Snyder the Governor of Michigan left this week for a trip to China for one week. This is the fourth visit he has made since 2011.
This visit underscores the important role he hopes investment from China can play in the economic recovery of the state.
Governor will be visiting Shanghai, Beijing as well as three more cities. China is Michigan’s third largest market for exports.