Help me understand why there's a 100k plus neighborhood in a war zone

[Omar Gutierrez]

So I drove through an area called oak cliff (complete war zone in dallas) and I came across a small neighborhood called encino hills. This area has 100k houses but what surrounds it is a complete run down of houses and commercial properties. Now my question to you is did this builder make a huge mistake? I've also seen on the outskirts of oak cliff is another section of spec builds. I can't seem to understand why these guys are building houses in a warzone. If someone local here in the dallas area please explain what the heck is going on?!?!

[Anthony Gayden]

Originally posted by @Omar Gutierrez:

So I drove through an area called oak cliff (complete war zone in dallas) and I came across a small neighborhood called encino hills. This area has 100k houses but what surrounds it is a complete run down of houses and commercial properties. Now my question to you is did this builder make a huge mistake? I've also seen on the outskirts of oak cliff is another section of spec builds. I can't seem to understand why these guys are building houses in a warzone. If someone local here in the dallas area please explain what the heck is going on?!?!

It makes perfect sense to me, but I am a forward thinker. I saw redevelopment like that in Kansas City before the real estate market crash.

First you need to remember that lower income people don't necessarily want to live in 100 year old homes. Yes the total household income may only be $35,000/yr, but they can afford a $100,000 house. Many of these people might be ethnic minorities who prefer living in the city, close to things, rather than 20-30 miles away in the suburbs. This market is generally ignored, but that doesn't mean it doesn't exist.

Simply put, a place is no longer a warzone if the vacant lots, abandoned homes, and crappy neighborhoods are rebuilt and redeveloped. I literally saw this take place as a large group of hispanic immigrants moved into Kansas City, KS.