Detroit's residential neighborhoods have experienced a remarkable 23% increase in property values over the past year, according to Mayor Mike Duggan. This surge marks yet another exceptional year of rising values in the city. As the value of all Detroit residential properties skyrocketed from $2.8 billion in 2017 to an impressive $8.7 billion today, Duggan proudly proclaimed that every single neighborhood in Detroit witnessed significant growth in home prices.
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"For 16 straight months, Miami led the country. They're the hot city," Duggan cheerfully noted. "What everybody in (Washington) D.C. wanted to talk about was that in November, Detroit has displaced Miami and the statistic they used is, looking back to last year, whose property values increased the most in homeownership? Who would have ever thought we'd see the day that the value of homeowners in Detroit is exceeding the rest of America?"
Property Value Notices and Appeals
Residents of Detroit can expect to receive notices of property assessment changes this week, providing an opportunity to review and appeal the assessments. These notices, distinct from tax bills, will be followed by the actual bills sent in June and November. It's crucial for property owners to carefully evaluate the section indicating whether their taxes will increase or decrease.
"The reason you're getting your notice in the mail is so that you can start an appeal process," Duggan explained. "Detroit does something nobody else does. We give you two separate chances to appeal. We give you an early informal assessor's appeal and then you get the formal Board of Review."
During this appeal period, residents have three weeks to challenge assessments, ensuring an opportunity to question how their properties are valued. The City of Detroit provides options to submit appeals online, by mail, or in person at the Coleman A. Young Municipal Center.
Detroit's Remarkable Progress
While CNBC reported that Detroit's homes are considered overvalued compared to household income levels, rising property values can also result in increased rents. Nevertheless, Mayor Duggan commended the city's recovery efforts, including initiatives to build more affordable housing, reduce homicide rates, and enhance parks and streetscapes.
"If you bought your house 15 years ago, and it has tripled in value because of the recovery of Detroit... the value of your home looks pretty darn high compared to your income. That’s a good thing. That means we have Detroiters gaining wealth, not just from their working life, but through homeownership," Duggan emphasized.
Stepping Up for Appeal
Last year, 6,300 residents participated in the assessor's review, with 2,000 proceeding to the March board review. This year, residents have until February 22 to appeal their assessments. Deputy Chief Financial Officer and Chief Assessor Alvin Horhn encourages property owners to take advantage of this opportunity to question property valuations and ensure accurate assessments.
Homeowners in Detroit are protected against significant tax increases due to a state law that imposes a 5% property tax cap. This cap allows some homeowners to be taxed at half of their assessed value. Additionally, assessment notices have been revamped this year, with larger print and more information about the appeals process, in line with the property tax reform ordinance passed by the City Council.
Success Stories from Detroit Residents
Cullin Flynn, who moved to Detroit in 2020, had a goal of buying a house that he successfully achieved in Minock Park of Grandmont Rosedale. He was pleasantly surprised by the value of his beautiful two-story Tudor-style brick home with a detached garage, purchased for $80,000. Flynn expressed his satisfaction and gratitude for the investment and development grants that have helped improve his neighborhood.
Another resident, Rochelle Wright, has been living in downtown Detroit for the past 55 years. Initially, she contemplated leaving due to the presence of blight, but a small voice encouraged her to stay and contribute to the revitalization of the city. She eventually became the proud owner of a Habitat for Humanity home in August 2005. Over time, the area transformed from empty land to a thriving neighborhood with plenty of homes.
Residents who wish to appeal their assessments can visit detroitmi.gov/PropertyTaxAppeal between February 1 and February 22. For any questions or concerns, contact the assessor's office at [email protected] or visit the Detroit Taxpayer Service Center at the Coleman A. Young Municipal Center.
In conclusion, Detroit's remarkable increase in property values not only reflects the city's ongoing revitalization but also signifies a genuine opportunity for its residents to build wealth through homeownership. With Mayor Duggan's unwavering commitment to progress, Detroit continues to grow as an attractive and prosperous community.
