Detroit, Michigan – A new report from the University of Michigan Poverty Solutions has revealed significant wealth gains for Detroit homeowners, which is encouraging for the city’s economic situation. Latest data show that Detroiters who own their homes added extra $700 million in home wealth in 2023 alone. This latest growth increases the overall gain over the last ten years to an astounding $4.6 billion.
Titled “The Growth of Housing Wealth in Detroit and its Neighborhoods: 2014-2023,” the report shows a steady rise in housing values across the city. From $4.2 billion in 2014, when the entire net worth of owner-occupied residences was calculated, to almost $8.8 billion by the end of 2023, there has been a rise. Over the decade, this is a significant 112% rise in housing-related wealth.
Examining the demographics profiting from this surge more closely shows that Black homeowners in Detroit have experienced the most notable increases. Their 75% share of the overall wealth growth equals around $3.2 billion. Rising from $3.4 billion in 2014 to $6.6 billion in 2023, the worth of residences owned and occupied by Black residents has almost doubled.
During his last State of the City Address, Mayor Mike Duggan looked back on the development and expressed gratitude the people who decided to remain and help restore the city. He said their patience and hard work have not only stabilized but also enhanced their communities, hence creating generational wealth now under construction.
Composed by Gerald R. Ford School of Public Policy professor Jeffrey D. Morenoff, demographer Kurt Metzger, and financial analyst Christina Shaw, the study emphasizes a more widespread distribution of wealth across several areas. Especially in previously worse property value locations, home sale values saw the greatest jumps; some reported increases as high as 276%.
Higher poverty concentration neighborhoods in 2014 also experienced notable growth; median house values in these areas rose by 264%. The study also highlighted notable value rises in areas with high Hispanic/Latino populations, especially in Southwest Detroit, hence disputing the idea that growth was limited to midtown and downtown districts.
The Condon neighborhood shows the obvious changes seen around the city. Median home sale prices here shot up from roughly $7,500 in 2014 to approximately $80,000 in 2023, an increase of 862%. Likewise, other areas such Jefferson/Mack, Kettering, Springwells, and Davison saw increases of 300% or more.
Residents such as Mignon’ Padilla expressed satisfaction and appreciation for the wealth accumulation made possible by these market movements, which have unfolded without proportionate increases in property taxes, thanks to policies including the principle house tax exemption.
Mayor Duggan attributed this achievement to the tireless work of community members and other city-led projects improving neighborhood attractiveness. Among these projects are the rebuilding of city parks, the clearing of abandoned houses, and the establishment of new enterprises under Motor City Match.
Stabilizing neighborhoods and maintaining inhabitants in their houses has also been significantly impacted by the sharp decline in tax foreclosures since 2016, supported by a partnership of local organizations and foundations. This all-encompassing strategy has strengthened the general economic resilience of Detroit as well as individual wealth, so transforming it into a city of lasting strength and community achievement.