Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Abandoned houses in Detroit. Photo: Patrick Gorski/NurPhoto via Getty Images


The outcry over affordable housing shortages in America's fastest-growing cities masks an equally devastating problem: persistently high rates of vacant and blighted housing in cities of all sizes.

Why it matters: Vacant housing spiked across the country after the foreclosure crisis of the late 2000s. While things have improved, vacancy rates are still far higher than they were before 2005, according to a 2018 report from the Lincoln Institute of Land Policy.

  • In many post-industrial cities, vacancies are still at "epidemic levels," per the report.
  • It's not just an urban problem; rural areas and small towns can have a vacancy rate nearly twice as high as major metro areas.
  • Abandoned properties are a significant drain on municipalities because they are expensive to police, drag down the value of surrounding properties, and reduce tax revenues.

Driving the news: Nearly 2 dozen city leaders, as part of the National League of Cities Housing Task Force, released a report this week concluding that blighted properties are one of the biggest challenges for housing in American cities — but one not often addressed by typical efforts to boost economic growth.

What's happening

Hard-hit legacy cities are dealing with some degree of "hypervacancy." When vacancies rise above about 20% of a community's total properties, the number of vacant buildings may grow indefinitely and the market stops functioning, according to Alan Mallach of the Center for Community Progress and author of the 2018 report.

  • Local governments have found creative strategies for incentivizing developers to come in or to turn lots into community parks or gardens.
  • "These cities are realizing that you can't simply assume that the private market is going to come along and slurp up these properties and turn them into good, productive uses," Mallach told Axios.
What cities are doing

Gary, Indiana, has the highest vacancy rate of single-family housing in the country. Working with local universities and nonprofits, the city launched the Gary Counts initiative to take inventory, eventually identifying more than 25,000 empty lots and nearly 7,000 vacant buildings.

  • It costs around $10,000 to demolish a property, said Mayor Karen Freeman-Wilson. But tearing the structure down is just the start, as vacant lots have a way of destabilizing neighborhoods. "There's often still a cloud hanging over the land," she said.
  • Leveling many adjacent properties attracts developers to build new subdivisions.
  • For example, one parcel has been transformed into a townhouse community with a variety of price points targeting millennials who want to live close to the commuter rail to Chicago.

In Macon, Georgia, the Mill Hill neighborhood flatlined when the mill closed and more than half of the homes sat empty.

  • Georgia's redevelopment plan allowed the city to declare Mill Hill a "slum," making it eligible for rehabilitation.
  • The local urban development authority and arts alliance are revitalizing the neighborhood as an arts district and have turned vacant lots into a linear park spanning four blocks.

Baltimore stimulated its own market by providing a steady pipeline of neglected properties to developers through regular auctions.

  • Since 2010, the "Vacants to Value" program has put 4,200 vacant buildings back into use.

Philadelphia, tired of abandoned lots that attract trash and crime, entered a "LandCare" program with the Pennsylvania Horticultural Society to "green" vacant lots.

  • It costs about $1,500 per lot to put down sod, plant a few trees and put up a simple fence, and it "totally changes the whole feeling of a neighborhood," Mallach said.
The cost

Dealing with abandoned properties is expensive. For example, Detroit is spending $256 million in federal grants to tear down vacant buildings, and Mayor Mike Duggan is pushing a $200 million bond issue to help eliminate blight by 2024, per the Detroit News.

The bottom line: In thriving cities, abandoned structures are quickly snapped up by investors looking to turn old warehouses into hip lofts.

  • But developers aren't knocking down the doors in distressed Rust Belt cities and small towns — the very places that can least afford to fix the problem.

Go deeper

Home confinees face imminent return to prison

Illustration: Aïda Amer/Axios

Thousands of prisoners who've been in home confinement for as long as a year because of the pandemic face returning to prison when it's over — unless President Biden rescinds a last-minute Trump Justice Department memo.

Why it matters: Most prisoners were told they would not have to come back as they were released early with ankle bracelets. Now, their lives are on hold while they wait to see whether or when they may be forced back behind bars. Advocates say about 4,500 people are affected.

The "essential" committee that still doesn't exist

House Speaker Nancy Pelosi. Photo: Stefani Reynolds/Getty Images

Nearly five months after House Speaker Nancy Pelosi (D-Calif.) announced the creation of the bipartisan Select Committee on Economic Disparity and Fairness in Growth, it's not been formed much less met.

Why it matters: Select committees are designed to address urgent matters, but the 117th Congress is now nearly one-quarter complete without this panel assembling. When she announced this committee, Pelosi described it as an "essential force" to "combat the crisis of income and wealth disparity in America."

Biden's ethics end-around for labor

President Biden surveys a water treatment plant during a visit to New Orleans today. Photo: Brendan Smialowski/AFP via Getty Images

The Biden administration is excusing top officials from ethics rules that would otherwise restrict their work with large labor unions that previously employed them, federal records show.

Why it matters: Labor's sizable personnel presence in the administration is driving policy, and the president's appointment of top union officials to senior posts gives those unions powerful voices in the federal bureaucracy — even at the cost of strictly adhering to his own stringent ethics standards.