New study finds housing value for Detroit Black homeowners increased nearly $3 billion between 2014-2022
(CBS DETROIT) - A study from the University of Michigan found that the housing value for Black homeowners in Detroit gained $2.8 billion between 2014 and 2022.
The Poverty Solutions study, titled "The Growth of Housing Wealth in Detroit and its Neighborhoods: 2014-2022," found that the net housing value for Black homeowners grew from $3.4 billion in 2014 to $6.2 billion in 2022, an 80% increase. Additionally, the net value of owner-occupied homes in the city nearly doubled from $4.2 billion in 2014 to $8.1 billion in 2022, amounting to a 94% increase in housing wealth.
Home value grew the most in neighborhoods with the lowest property value and highest poverty value, according to the study.
"The findings in this report illustrate how far Detroit's housing market has come since 2014 in recovering from the devastating effects of the Great Recession," read the report. "Whereas many homeowners lost their homes or left the city when Detroit's housing market began to collapse, most of those who remained have seen their home values appreciate, providing an opportunity for them to rebuild their equity."
The report looked into housing values after the city filed for Chapter 9 bankruptcy in 2013 and whether the property value growths were distributed equitably across multiple neighborhoods and racial populations.
In the Condon neighborhood, the median home sale value was $7,500 in 2014 and grew to $71,700 by 2022. Other neighborhoods, including Jefferson/Mack, Kettering, Springwells and Davison, saw a 300% or more increase.
The study also showed neighborhoods with high concentrations of Hispanic and Latino populations witnessed the largest increase in home value.
"For the past nine years, the active members of 600 organized block clubs and neighborhood associations in the city have been working to rebuild their neighborhoods. The $3 billion in new home wealth they have created and earned is a direct result of their dedication and hard work," said Detroit Mayor Mike Duggan.
Duggan credited the improvements to residents and city employees who contributed to several initiatives, including the renovation of city parks and recreation centers, addressing vacant homes and the cleaning of overgrown alleys.
"There has been a huge shift for the better in Detroit's home values, driven largely by the improvements being made in neighborhoods. My follow realtors and I have been seeing this shift for years. Black owned homes are rising in value and Black families are gaining the most family wealth," said Ken Scott, past president of the Greater Detroit Realtist Association and Detroit Association of Realtors. "And while home values have risen dramatically, there is a lot of growth yet to come. Detroit homes are beautiful and dollar-for-dollar still a great value."