New Detroit is focused on initiatives aimed at balancing the differences in the economic outcomes between whites and the communities of color. The gaps are evident in virtually every area of economic engagement. Simply put, not enough Americans are experiencing their highest economic potential. New Detroit is dedicated to working towards bringing balance.

Home Ownership

The most significant investment most people will make in their lifetime will be their primary residence. It has been one of the keys to creating personal wealth. While more than 70% of whites are homeowners, less than half of African Americans own homes. When you examine the wealth and control for equity in real estate it becomes clear that home ownership is a significant factor for wealth creation. New Detroit works toward initiatives that expand home ownership for people of color in the region.

Business ownership

While the communities of color have made many advances, there remains a significant difference in business ownership. According to the most recently available data, African Americans were 12% of the overall population but represented 5% of all business owners. Hispanics are 13.5% of the population yet only 7% of business owners. This gap is important to address because it is connected to many other potential outcomes. People of color tend to hire people within their communities and they tend to invest in those same communities. When businesses are increased, there are more employment opportunities and wealth is created. That wealth supports related businesses including goods and services that are required for business operation. Restaurants and other related businesses are supported. In all, business ownership is a benefit to the region and New Detroit is committed to assist in developing and supporting initiatives that expand business ownership.

Financial literacy

Financial education is a challenge for all people but is significantly difficult for the communities of color. There is a real challenge faced by people unable to understand and access financial services. They are required to spend extraordinary amounts of time and money to conduct personal business including paying bills and basic financial transactions. New Detroit is committed to educating the community in financial education.

The partnership between New Detroit and Operation Hope is one that has produced basic financial education to more than 11,000 Detroit schools students. There are 40 plus schools and 26 community organizations that have been trained in financial education. New Detroit helps recruit volunteers and facilitates the entry to student groups in Detroit. When people have a basic understanding of financial matters it can change negative behaviors and spurs further interest in money and business matters.

The Alliance for Economic Inclusion is an initiative being driven by the FDIC that New Detroit has joined to provide financial education for adults that are primarily unbanked and under banked. There is a significant difference in the quality of life that is experienced by people that do not have access to the banking system. The fees and time that is required for those that do not have access can produce significant challenges including personal safety. These challenges are experienced by the communities of color but in ways specific to their community. The Hispanic community is challenges around personal information and immigration issues. African Americans that do not have access to the banking system typically have issues around previous misuse of the banking system. These unique issues are part of the work being accomplished by the Alliance. New Detroit participates in the policy and leadership of this coalition to effectively bring more individuals into the banking system. This includes breaking down misinformation and may include policy changes for banks and data monitoring systems that prevent reasonable disposition of negative history. Removing these barriers can have a significant impact in improving the quality of life for the individuals facing these challenges.