A new report from the Urban Institute (UI), using data from the credit bureau Experian, reveals that two-thirds of Detroit residents have subprime credit scores (or no scores at all). CityLab stafer David Dudley takes a look at the credit issues of Detroit, whose share of subprime borrowers is twice the national average.
Diana Elliott, a UI research associate and co-author of the study, explains why Detroit has such terrible credit scores in comparison to the nation and other Rust Belt cities:
Elliott notes that the city was particularly hard hit by the subprime housing loan crash of 2008, but this remarkable concentration of financial ill health is really the result of decades of job loss, disinvestment, and population drain. “The more financially able residents were able to move out of Detroit, many to the larger metropolitan area,” Elliott says.