Detroit home values rise 23% in 2023, adding $1.7 billion in wealth to city's homeowners

Detroit property values rose 23% since 2022, marking the city's eighth-straight annual increase for homes within its boundaries.

According to the city mayor, residents have added $1.7 billion in wealth over two years to their homes. Every neighborhood in Detroit recorded an increase.

"We are now seeing the neighborhoods that had lagged before, they are now climbing fastest," Mayor Mike Duggan said Monday. The press conference included the city assessor and councilmen Fred Durhal III and Coleman Young II, two representatives that have campaigned on boosting Black wealth.

Young said the largest increases in property values happened in the lowest-valued neighborhoods.

"That means for people that are returning, people who stayed in the city of Detroit, and people who are coming into Detroit - everyone has benefited," he said. "A rising tide lifts all boats."

Since values bottomed out and began rising, the worth of Detroit's residential property had tripled since 2017. Valued at $2.8 billion, Detroit's housing stock will be worth $8.7 billion in 2024. Duggan said the rate of increase pushed Detroit to the top of major cities with appreciating home values. 

It currently ranks first, surpassing Miami in 2023.

Announced the day after Detroit celebrated another milestone at Ford Field, Duggan didn't shy away from the comparison.

"The national narrative is turning to the parallel of the remarkable recovery of the Lions, and the recovery of the city and the news I have for you today is going to show just how remarkable that is," he said.

Three Detroit neighborhoods saw property values go up 50%.

Meanwhile, another 188 neighborhoods rose at least 23%. Districts 4, 5, and 6 all saw neighborhood values rise by an average of more than 30%.

Does this mean taxes will go up?

The dark side of rising home values is the tax on those values often times rises with it. 

That means even if someone's home becomes worth more, they'll have to shell out more to keep living in the city.

That's true in this case - though not by as much as one may think. According to the state constitution, property taxes cannot rise with inflation beyond a certain point. In Michigan, property taxes can't rise more than 5% in a given year. 

So while the average Detroit homeowner saw their property value go up 23%, they will only pay up to 5% more in their taxes. The only way that cap lifts is if the home is sold.