Detroiters to see up to 20% increase in property values, Duggan announces

Detroit's residential properties saw an average value increase of 20% in the last year, marking the sixth year of rising values, Mayor Mike Duggan announced Friday.

Notices of property assessment changes will be mailed beginning Jan. 17 to more than 408,000 residential, commercial, industrial and personal property owners. The notices are not tax bills, Duggan said. Actual bills will be mailed in June and November from the city's treasury office. Property owners are advised to look at the section indicating whether their taxes will increase or decrease, Duggan said.

"The Michigan constitution says no matter how much your property values goes up a year, your taxes go up with inflation and even if inflation goes up, your taxes can't go up more than 5%," Duggan said. "Last year, more than 97% of all Detroit homeowners saw an increase in your property value. It is east to west, north to southwest. It is just overwhelming, the recovery of neighborhoods across the city."

In the last three years, Detroit's property values rose up to 45%, Duggan said. That number compares with Grand Rapids and Southfield, which saw up to 32%, Royal Oak at 26% and up to 19% in Novi.

"The increases are dramatic. We are building wealth homeowner-by-homeowner," Duggan said. "Last year, more than 97% of homeowners saw an increase in home value."

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Property values jumped dramatically from about $4.5 billion in 2021 to $7 billion in 2023. Duggan attributed the rise to a combination of factors, like removing vacant homes and improving neighborhood streetscapes and parks.

"There's a whole lot of neighbors in this city ... who really resent the characterization of neighborhoods being run-down. We have great neighborhoods that have come back dramatically," Duggan said. "Property values in Detroit have been growing for a while, but they’ve really been exploding in the last few years."

The city's residential properties lost about $3 billion in value in 2010. When Duggan took office in 2014, he announced a cut in residential assessments. In 2016, areas such as downtown and Midtown saw more growth in residential property values. More neighborhoods started to see gains years later and values jumped from $2.8 billion in 2018 to $7 billion in 2023, according to the city.

Property values declined rapidly in 2014. Ever since, values have risen: by 12% in 2019, 23% in 2020 and 27% in 2021, Duggan said.

Between 2011 and 2014, "taxes were being charged higher than the rate of your property value," Duggan said, calling Detroit's current state of property values a “complete reversal” of where it was 10 years ago.

"Home values in nearly every neighborhood have been steadily rising, allowing longtime Detroit homeowners to build new wealth without significant tax increases," Duggan said. "These numbers show that while there is still more work to do, the city's revitalization has reached nearly every corner of our city."

Under state law, property owners can appeal the proposed valuation changes, which are tentative until a review is completed by the local Board of Review between March 7 through 25 and the Wayne County Assessment and Equalization Department in April, according to the city.

Alvin Horhn, chief assessor, urges Detroiters to check their notices and contact his office to have an appraiser walk through their homes and explain the valuation if they have questions.

"If they agree with it, that's fine. But if they disagree, they have a three-week window to object. By the time you get your tax bill, it is too late to object how we valued your property," Horhn said. "If you don't take advantage of that opportunity, you cannot go to the Michigan Tax Tribunal and we can't change that tax bill."

To file an appeal, email assessorreview@detroitmi.gov or appeal online. Property owners can appeal by mail, if postmarked by Feb. 22, to the City of Detroit Office of the Assessor, 2 Woodward Ave., Suite 804, Detroit, MI 48226.

Melvyn Chuney, president of the Russell Woods-Sullivan Area Association, said property values have grown exponentially in his neighborhood, along with an influx of new businesses and renovated streetscapes.

"I’m a lifelong Detroiter. I’m a retired police officer. And I never want to leave because I have faith in this city," Chuney said. "I'm here to attest to it personally ... my taxes are nowhere near what the property value is."

Dana Afana is the Detroit city hall reporter for the Free Press. Contact: dafana@freepress.com or 313-635-3491. Follow her on Twitter: @DanaAfana

This article originally appeared on Detroit Free Press: Detroit property values average 20% increase, Duggan announces