Homeowners in Detroit have witnessed a considerable increase in their property values, as reported by the University of Michigan Poverty Solutions. Mayor Mike Duggan shared this encouraging news, highlighting that the homeowners' wealth climbed by $700 million in 2023 alone. This takes their total wealth gains to an impressive $4.6 billion over the last decade, according to figures released by the institution, according to the City of Detroit.
The recent wealth surge builds on the previously recorded $3.9 billion in home wealth, initially spanning from 2014 to 2022. The ongoing study, titled "The Growth of Housing Wealth in Detroit and its Neighborhoods: 2014-2023," showcases the upward trajectory of home values enjoyed by Detroit's homeowner occupants, with a particular spotlight on the city's Black homeowners. They have realized a hefty 75% of the wealth gain, amassing an additional $3.2 billion since 2014, which signifies nearly a doubling of the value of their homes from $3.4 billion to $6.6 billion in less than a decade, as per information from the City of Detroit.
Mayor Duggan, reflecting on the findings of the University of Michigan’s latest report, recalled his plea to Detroiters in his first State of the City Address in 2014, asking residents to stand by the city during its resurgence. "This study tells those who made the choice to stay that their patience and hard work have been rewarded and as a result are now building significant generational wealth," he remarked in a statement mirrored by the City of Detroit.
The study, headed by Jeffrey D. Morenoff, an esteemed Professor and Associate Dean of the Gerald R. Ford School of Public Policy, and co-authored by Kurt Metzger, a demographer and the founder of Data Driven Detroit, as well as Christina Shaw, who works as a financial analyst for the city, incorporates a robust set of data including warranty deed sales from Wayne County's Register of Deeds between 2014 and 2023, as reported by the City of Detroit.
An intricate part of this wealth gain has been the increase in value particularly seen in neighborhoods that had the lowest property values back in 2014. Here, home values surged by an average of 276%. A major contribution to the rise in home sale values also came from areas with high poverty rates, where median home values grew by 264%. The Condon neighborhood stands out with a meteoric 862% increase in the median home sale price from roughly $7,500 to an approximate $80,000 in less than a decade, as detailed by the City of Detroit.
Various neighborhood improvements and city-led initiatives also played a pivotal role in the booming home values. Among these were the renovation of city parks and recreation centers, demolition of dangerous vacant homes, and the encouragement of local entrepreneurship through the Motor City Match program.
Evidence of the vitality and communal resilience is further demonstrated by the dramatic reduction in tax foreclosures in the city. Since 2016, and with the help of numerous community partners such as the Rocket Community Fund and the Gilbert Family Foundation, tax foreclosures have been reduced by a staggering 96%. This collaborative effort has helped maintain residents in their homes, solidifying the continued upward trajectory of community wealth and stability.
