Home values increased an average of 20% in Detroit, officials say
(CBS DETROIT) - Neighborhoods across the city of Detroit saw an average increase of 20% in home value in 2022, Mayor Mike Duggan announced Friday.
Out of 209 neighborhoods, 195 increased in value ranging from 1% to more than 30% in the last two years. However, six neighborhoods lost value ranging from -2% to -11%. The data does not include the eight condo neighborhoods in Detroit.
City officials say the increase will be reflected in an annual notice of property assessment changes for this year. Those notices will be delivered to mailboxes next week.
"Home values in nearly every neighborhood have been steadily rising, allowing longtime Detroit homeowners to build new wealth, without significant tax increases," Duggan said in a press release. "These numbers show that while there is still a more work to do, the city's revitalization has reached nearly every corner of our city."
Officials say with the increase, homeowners are protected against large property tax increases. The annual property tax increase is capped at 5% or the consumer price index, depending on which is lower, if ownership did not change.
City officials say because the CPI is 7.9% this year, homeowners will not be subjected to a tax increase. The cap will be lifted when a home sells, and the tax will adjust to the State Equalized Value the year following transfer.