Detroit Sees Significant Growth in Residential Property Values
In a noteworthy development for Detroit homeowners, the city’s residential property values have surged by approximately $500 million over the past year. City officials attribute this upward trend to enhanced public safety, improved city services, and effective blight remediation, which have collectively revitalized confidence in the housing market.
Despite the increase in assessed values, city authorities have assured residents that this will not lead to significant hikes in property tax bills for most homeowners. Under state law, unless a property has changed ownership, its taxable value remains capped, ensuring that rising assessments do not automatically result in steep tax increases.
In a move to enhance transparency and fairness in property assessments, Detroit Mayor Mary Sheffield has issued her first executive order. This directive mandates a comprehensive overhaul of the city’s property value assessment practices. Sheffield emphasized, “I believe that all Detroiters deserve accurate property tax assessments. No matter how much your house is worth or which neighborhood you call home.”
The executive order tasks the city’s assessor with adopting the International Association of Assessing Officers’ standards, provided they align with Michigan law. Additionally, the city will begin releasing a mass appraisal report every two years, starting next year, to detail how property values are calculated across neighborhoods. This report aims to improve transparency and aid residents in understanding their property assessments.
Moreover, the order instructs refinements in assessing neighborhood-level economic conditions. These refinements ensure that assessments remain localized and equitable by considering more specific conditions within each neighborhood.
During a press conference, residents expressed appreciation for the rising home values, which alongside tax caps, have enabled longtime homeowners to enjoy the city’s economic recovery without the fear of being priced out. City leaders describe these measures as part of a larger strategy to ensure that Detroit’s property tax system is fair, clear, and accountable.
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