The Chinese are coming to Detroit. At least, that’s what Forbes, Salon, NBC News and many other major outlets have reported. Most of these stories stem from a video that was circulated around CNTV in China in March of 2013. This video claims that houses in Detroit, “could be bought for the price of a pair of shoes” according to NBC’s translation.

An article in Forbes

The problem with these reports is that none of them cite any real facts. The closest thing I could find to actual data on the subject is an article in RISMedia that claims that one of China’s international real estate website says that Detroit is number four on it’s list of “cities that received the most interest from Chinese property hunters online”. To me, this news is not compelling or indicative of actual purchases from Chinese companies or citizens.

Michigan Radio has also looked into the claims that Chinese investors are buying up swaths of the Motor City and have come to the conclusion that while such reports are, “[…] very overhyped, there is a kernel of truth to it. There just seems to be a lot more curiosity and scouting than actual investment going on for now.” 

This story is something that is probably one of the chief fears of native Detroiters. It plays into the story that people from the suburbs and from out of state are coming to Detroit, deciding what’s wrong with it and “fixing it” themselves, without any regard for the residents or respect for the history. Even worse, as the Forbes article claims, the Chinese investors are said to just buy the properties and sit on them without improving or cleaning them up. According to Forbes, the Chinese companies that have invested in Detroit so far,  “[…] often keep their acquisitions vacant, treating new properties like stores of value”.

If the hype turns into a significant amount of purchases, I’m not sure anyone can predict what the effects would be. It could provide new capital and contribute to the hybrid vigor of the city, it could further marginalize the current residents, or a combination. It could also not even occur in the first place.

That said, as always, make sure you pay attention to the actual facts behind the sweeping claims about Detroit.