DS News released a report about which cities are prepared for recession. Moody’s Investor Services rated the largest 25 cities in America. The top 6 cities that are rated as “stronger”, are Boston, Charlotte, Denver, San Antonio, San Francisco, and Seattle. These cities are considered “stronger” because of their financial expansion in the past decade. Also, local governments kept their debt and fixed costs in check. A majority of these cities would be able to weather a recession, however Chicago and Detroit were rated “weaker” in terms of recession preparation.
HOW WILL DETROIT BECOME MORE PREPARED?
According to the Moody report, “Detroit has taken steps to prepare for a potential downturn: establishing an irrevocable trust to smooth spikes in pension contributions, developing a capital improvement plan that identifies a variety of sources to finance capital investments, and continuing to increase its already strong reserves”. In addition, prices of homes have been increasing over the years, which indicates there is a higher demand to live in Detroit. Even though the home prices are increasing, there are still several affordable neighborhoods in the city. Moody believes that if Detroit continues this trend, they should be able to catch up to other cities.
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