Homesteading 2009 style: Moving into a $1,000 house
Filed under: Bargains, Extracurriculars, Home, Simplification, Recession
Over the past year, amid twisted tales of economic meltdowns and subprime mortgages, a new housing market has garnered a great deal of media attention. Ultracheap homes, often priced below $1000, have been cropping up across the country. While these properties generally require considerable renovation, as an article on CNN money notes, they can still be great bargains.
Over the past year, your devoted Walletpop writers have kept a close eye on this developing market, noting both its pitfalls and rewards. One potential downside is that these incredible bargains are often located in formerly booming industrial centers like Detroit, Cleveland, Flint, and Buffalo. As manufacturing jobs have evaporated, so have communities, transforming many of these cities into ghost towns. They are often characterized by massive unemployment, substandard schools, insufficient social services, and a moribund cultural life. In many cases, moving into these cities will require new arrivals to be pioneers, in almost every sense of the word.
On the other hand, for motivated and adventurous homeowners, this can be a great opportunity. For example, as New York magazine noted in an article about Buffalo, these depressed towns can offer a lifestyle that is unaffordable in more prosperous cities. For that matter, one could argue that like attracts like, and the concentration of urban pioneers may lead to the emergence of some new, energetic societies. In Buffalo, for instance, cheap rents and an influx of creative, ambitious people has led to a growing arts scene and a sense of endless possibilities. Another thing to consider is that, while these former industrial towns may be victims of America's loss of manufacturing jobs, they could also be the beneficiaries of America's emergent telecommunications trend. After all, while the old economy dictated that workers had to live near their jobs, high-speed internet is, increasingly, making it possible for workers to live almost anywhere.
In fact, as Wired magazine points out, telecommuting actually improves productivity in many industries. As more and more workers access the office through the web, there is little reason for them to remain in expensive, overcrowded cities, especially when outstanding housing is available elsewhere.
Detroit has over 700 houses that are currently listed for $1,000 or less, and housing prices from Cleveland to Birmingham are often ridiculously low. Added to this, HUD and Congress are lining up to offer loans and grants to homeowners seeking to improve moribund neighborhoods. While the future of America's former industrial cities might not resemble their manufacturing past, one thing is for certain: the current housing slump offers amazing opportunities for America's adventurous homesteaders!
Bruce Watson is a freelance writer, blogger, and all-around cheapskate. Every so often, he daydreams about moving to a ghost town and fixing up some old police station or church. Then he remembers his neighborhood Vietnamese restaurant and decides to hold off for now.
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On the other hand, for motivated and adventurous homeowners, this can be a great opportunity. For example, as New York magazine noted in an article about Buffalo, these depressed towns can offer a lifestyle that is unaffordable in more prosperous cities. For that matter, one could argue that like attracts like, and the concentration of urban pioneers may lead to the emergence of some new, energetic societies. In Buffalo, for instance, cheap rents and an influx of creative, ambitious people has led to a growing arts scene and a sense of endless possibilities. Another thing to consider is that, while these former industrial towns may be victims of America's loss of manufacturing jobs, they could also be the beneficiaries of America's emergent telecommunications trend. After all, while the old economy dictated that workers had to live near their jobs, high-speed internet is, increasingly, making it possible for workers to live almost anywhere.
In fact, as Wired magazine points out, telecommuting actually improves productivity in many industries. As more and more workers access the office through the web, there is little reason for them to remain in expensive, overcrowded cities, especially when outstanding housing is available elsewhere.
Detroit has over 700 houses that are currently listed for $1,000 or less, and housing prices from Cleveland to Birmingham are often ridiculously low. Added to this, HUD and Congress are lining up to offer loans and grants to homeowners seeking to improve moribund neighborhoods. While the future of America's former industrial cities might not resemble their manufacturing past, one thing is for certain: the current housing slump offers amazing opportunities for America's adventurous homesteaders!
Bruce Watson is a freelance writer, blogger, and all-around cheapskate. Every so often, he daydreams about moving to a ghost town and fixing up some old police station or church. Then he remembers his neighborhood Vietnamese restaurant and decides to hold off for now.
Reader Comments (Page 1 of 3)
1-08-2009 @ 8:06PM
tojo said...
Here is the reason that homes are cheap in the cities.
From the FBI: Black males age 14 - 35, commit 56.6% of all violent crime in America while they comprise less than 3.5% of the population, and contribute less than 1/10 of 1% to the gross national product.
Reply
1-09-2009 @ 2:32AM
Anne said...
Sorry, but those FAKE "stats" did NOT come from the FBI and you should be ashamed for spreading such BS. You are pure and simple .....a racist.
1-08-2009 @ 8:19PM
Shelley said...
Hey tojo- racist much?
Reply
1-08-2009 @ 8:42PM
kasey said...
hes not racist hes just listing statistics. you still think the same thing if he listed that fact about white people?
1-09-2009 @ 2:34AM
so cal girl said...
Why IS IT THAT WHEN SOMEONE STATES A FACT
IN AMERICA WE ARE RACIST? GET OVER THIS STUPID
WAY OF THINKING AND DEAL WITH THE WAY IT TRULY
IS
1-08-2009 @ 8:45PM
jim said...
Shelley - Whats wrong??? Dont you believe the statistics? Did you collect your own data to prove them wrong? What urban city do you live in? Do you have bars on the windows at your house?
Reply
1-08-2009 @ 8:49PM
John said...
I have to agree with TODO. Just take a look at the statistics that he stated. It truly is a shame that America has these stats and the poverty rate in those areas are obsurd.
Reply
1-08-2009 @ 8:56PM
Whitter said...
Agree as well. John, his name is Tojo. Other then that, well stated. Just taking a look at the way those stats were stated was truly a shot to the heart of many Americans. We are not racist but many African American families have way too many children and then those children have to commit crimes to try and earn extra income that the family cannot supply.
1-08-2009 @ 9:01PM
victoria said...
thats for sure i haved lived in the projects from when i was born untill i was 20 years old got out since i been tortured most of my young adult hood from afro american people just to move a few block from there and get married then the owner a white old woman who owned it died and sold out to people who put afro american people in just to cause me much heart ache and more trouble 30 years in the same apartment just to have to move out because they had water leaking down my apartment and diden't want to let anyone in to fix it then they would stay out side to all hours of the night yelling smokeing pot drinking
Reply
1-08-2009 @ 9:00PM
Flyingfomykids said...
Those statistics do not look good. Can somebody post the statistics for White Males?
Reply
1-08-2009 @ 9:08PM
Southern Sweets said...
Tojo the only reason that seems to be a lot is becasue there is more white, mixed, latino people than black so any statistic percentage will be high when it comes to blacks. Look at the population of the US. If you look at direct numbers instead of percentages you will see the truth. Get your facts straight.
Reply
1-09-2009 @ 9:52AM
Truth is Painfull said...
you moron!!! the percantage quoted WAS with regard to the whole ...remember? as in- Black males age 14 - 35, commit 56.6% of all violent crime in America while they comprise less than 3.5% of the population, and contribute less than 1/10 of 1% to the gross national product....did you read that again? 56.6% of ALL violent crime..if they make up a smaller percentage of population than any other group they SHOULD be responsible for a lesser (read: proportionate) number of crimes. you are an IDIOT and I do mean that like you read it. DOOFUS
1-08-2009 @ 9:25PM
mark said...
I love this writers comment, "THESE HOUSES ARE A THREAT TO ELEMENTARY SCHOOL CHILDREN" ! I think the opposite is true ! These black bastards are pulling the pipes out of the walls and pulling out wiring in houses that they should not be in.You would have to have a lot of guts to put a dime into these HELLHOLES ! I'm not predujused against blacks. I hate anyone that has no respect for other people's property. BLACK'S DON'T CARE ABOUT ANYTHING . THEY ARE ALL STUPID, BLOODSUCKING DRUG ADDICTS. WORTHLESS CRAP !
Reply
1-08-2009 @ 9:31PM
Jojo said...
wft are you ok?? u sound like ur pmsing. damn take a chill pill :O
1-08-2009 @ 9:20PM
Mark said...
Southern Sweets , Your a moron ! There is between 11 and 13 per cent blacks in this country and yet if there were no blacks in this country , we could get rid of 90 % of the prisons ! GET YOUR FACTS STRAIGHT !
Reply
1-08-2009 @ 9:22PM
pony said...
all of you are a bunch of red neck racist who have to much time on your hands should'nt you be out looking for a new job or killing your selves because you lost all of your money in stocks go cry about the economy looser your poor white trash.
Reply
1-08-2009 @ 9:26PM
Eileen said...
Mr. Watson, you've done Cleveland a huge disservice! Many of the bargain properties you mention are within walking distance of amazing urban gentrification projects - shops, restaurants and townhomes. We boast two world-class hospitals within our city limits, each of which posts hundreds of good job openings every week; one of the world's most widely renowned symphony orchestras; amazing museums in the heart of University Circle. And of course - stunning vistas from the public parks and lovely homes overlooking Lake Erie.
Do we have crime? Sure. Do we have really bad luck in baseball and football? No doubt! Have we lost loads of jobs? What city hasn't? But, to lump Cleveland in with Detroit, Buffalo and Flint is a big mistake. It's a wonderful place to visit, to work, and to live. Check us out - you may like what you find!
Reply
1-08-2009 @ 9:32PM
Bruce Watson said...
Dear Eileen-
While I can't speak for Detroit or Flint, my experiences in Buffalo have been uniformly enjoyable, and the article that I cited spoke very highly of the northern New York city.
I definitely hope to check out Cleveland; more to the point, I think that it, like the other cities I mentioned, has enormous possibilities as a future hub for e-business. Maybe my piece didn't make this clear, but it is my fervent hope that the cities I mentioned, with their impressive infrastructure, might benefit from the next stage of American economic growth!
1-08-2009 @ 9:36PM
Mark said...
THIS IS NOT SUPPOSED TO BE A COMUNIST COUNTRY ! BUT I'M BEING CENSORED AGAIN BY PEOPLE THAT DECIDE WHAT YOU SHOULD READ AND WHAT YOU SHOULDN'T! GO BACK TO RUSSIA ! SCUM ! I HAVE A RIGHT TO MY COMMENTS ! THE FACT IS THAT BLACKS MAKE UP THE BIGGEST PART CROOKS AND DRUG ADDICTS, THEY ARE FAT, LAZY AND STUPID ! THAT IS A FACT AND YOU CAN'T CHANGE IT BY REMOVING MY COMMENTS.
Reply
1-08-2009 @ 9:45PM
ife said...
umm mark just to let your white ignorant ass know, white people make up the most part in drug addicts and white people commit the other 50 percent of crimes in this country, they are ignorant stupis and racist its a fact!