Detroit Property Value Assessments Increase By 20%

Duggan says the values are not just in key neighborhoods.

WWJ News
January 21, 2020 - 5:18 pm
Detroit Mayor Mike Duggan

Photo: Jon Hewett / WWJ

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DETROIT (WWJ) -- Home and property prices are on the rise in Detroit for the second straight year.

The city released numbers Tuesday, detailing a citywide increase to property values across Detroit's 194 neighborhoods. The city as a whole saw a 20 percent increase in assessed property values, though some areas saw that number climb over 30 percent. Officials say it's the largest increase in value in two decades and the largest increase in Wayne County for the second consecutive year.

Speaking at the Coleman A. Young Municipal Center Tuesday, Detroit Mayor Mike Duggan says that's great news.

"For the majority of people in this town whose largest investment they will ever have is their house, their value is significantly higher today than it was a year ago and much more than it was two years ago," Duggan said.

Last year, the mayor announced an average increase of 13 percent in residential property values. In 2019 assessments, the city’s class of residential properties gained about $400 million in value compared to the year before, according to the city. In the 2020 proposed assessments, the residential property class grew by over $600 million, bringing the city’s gain in residential value over those two years to more than $1 billion, a 35% increase in residential property value over two years, the city said.

Of the city's nearly 200 neighborhoods, roughly half of them had an assessed property value increase of 20-30 percent, while 16 percent -- or 32 neighborhoods -- saw an increase of more than 30 percent. Assessed values were down in only eight neighborhoods and Duggan says things are clearly moving in the right direction.

"There was a time when the only place you could see houses being fixed up in this city was when the land bank sales were being worked on. Now, you go into neighborhoods across the city and you see people starting to invest in their homes because they know the value is there. We’ve waited a long time for this," Duggan said.

Duggan says the values are not just in key neighborhoods where developments are booming and tourists are flocking, according to the 2020 assessments

"For anybody who’s put out a narrative that the benefits have been downtown and Midtown, this is the second year in a row that we have seen neighborhoods far southwest, far east, far northwest with 20 percent -- and we had neighborhoods that had 30 percent gains -- in a single year," he said.

Duggan says one of the biggest driving factors in the sharp increase is that many people now own their homes, and the city has nothing to do with their property.

While property values in the city have increased sharply, homeowners are protected against large property tax increases. Under state law, the annual increase in property taxes is capped this year at 2-percent as long as ownership has not changed, the city said in a news release. When a home sells, the cap is lifted and the taxable amount adjusts to the State Equalized Value the year following the transfer.

In addition to residential property values, the mayor says commercial and industrial values are also up across Detroit.

The city says property owners can expect to receive notices of proposed assessment changes in the mail in the coming weeks. Under state law, property owners have the right to appeal the proposed changes. That deadline is Feb. 22.

The city released a detailed map of which neighborhoods saw increases in property value assessments.

2020 Detroit Residential Assessments Map
City of Detroit