Why Maryland—And 6 Other States—Are Investing In Demolition

Maryland just rolled out a $75M demolition plan to tear down 4,000 vacant homes in Baltimore—a plan that it hopes could raise property values and reduce crime.

Maryland is only the latest US state to invest in demolition to revitalize its cities, Bloomberg reports. In 2013, the US Treasury made $370M available for the demolition of abandoned buildings in six states—Michigan, Indiana, Ohio, South Carolina, Alabama and Illinois.

In Michigan, the investment—known as the Hardest Hit Fund—has paid off. Through September 2015, Michigan used $84M out of the Fund to tear down 5,850 homes; research by holding company Rock Ventures shows the program has added 4.2% in value to all buildings within 500 feet of each demolition.

Though Maryland doesn't qualify for the Hardest Hit Fund, Baltimore will be contributing $19M to support the demolition program. Gov. Larry Hogan's plan also includes $600M in redevelopment funding. [Bloomberg]

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