The city of Detroit announced yesterday that its 2020 assessments of residential property taxes are expected to increase by an average of 20 percent. If correct, it would mark the largest increase in home values since 1997.
It would also mark three years of growth after 17 consecutive years of declining home values.
“This is great news for Detroit homeowners, particularly those who held on to their properties and stayed in the city,” Mayor Mike Duggan said at a Tuesday press conference announcing the findings.
According to the city, nearly half of Detroit’s neighborhoods saw their average home value increase between 20 to 30 percent. Those neighborhoods includes large swaths of Corktown, Boston-Edison, Southwest Detroit, the Villages, Jefferson-Chalmers, East English Village, the Live6 area, and others. Only 4 percent of neighborhoods saw home values decrease.
A recent report from the Detroit News found that Detroit homeowners were overtaxed by at least $600 million between 2010 and 2017. Assessments have begun to reflect actual home values in recent years after plummeting during the housing crisis of 2008. According to Crain’s Detroit Business, “Detroit’s housing stock was valued at $8.8 billion in assessed value in 2008, and $2.8 billion in 2017.”
But under state law, even if assessments are higher, tax increases are capped 2 percent annually so long as ownership doesn’t change.
Residents have through February 22 to appeal their property tax assessments. Information on how to appeal can be found here.