A citywide reassessment has revealed double-digit increases in property values throughout Detroit, according to Mayor Mike Duggan’s office. Commercial property values, for example, rose a whopping 35 percent between 2017 and 2018 to an overall value of $4.5 billion. Meanwhile, industrial property values in the city increased by 18 percent during the same period as well.
Perhaps the most promising increases in property values can be found in Detroit’s residential market, however.
After 17 years of steady decline, residential property values rose 12 percent in 2018. This constitutes the first citywide increase in residential property values in nearly two decades. Furthermore, rather than being concentrated in just a few of the city’s wealthiest neighborhoods, residential property values increased in more than 90 percent of Detroit’s 194 neighborhoods.
“I always thought that we would see double-digit increases,” said Mayor Duggan during a recent press conference. “But it’s one thing to think it should be happening and it’s another thing when the assessor walks into your office and shows you the map that it’s happening all across the city.”
Although the sudden increase in property values could present a challenge to prospective buyers in 2019, constitutional caps on property tax growth will limit tax increases for existing property owners to about 1 percent this year. These caps on taxable value are lifted when a property is sold.
To learn more about recent developments in Detroit’s real estate market, stay tuned for the latest updates from our blog at the Law Offices of Aaron D. Cox, PLLC.