Detroit’s residential property values have climbed by roughly $500 million in the last year, signaling continued growth across the city and rising equity for homeowners, according to city officials.
The increase follows a steady upward trend that began in 2014, the city said, ascribing the increase to improvements in public safety, city services, and blight remediation that helped restore confidence in Detroit’s housing market.
Officials emphasized that while assessed values are rising, most homeowners will not see sharp increases in their tax bills.
That's because if a home didn't change ownership in the past year, the taxable value remains capped under state law. City officials stressed that higher assessments do not automatically translate into large tax hikes, even as market values increase.
Against that backdrop, Detroit Mayor Mary Sheffield signed her first executive order, directing the city’s assessor to overhaul how property values are calculated and communicated to residents.
“I believe that all Detroiters deserve accurate property tax assessments. No matter how much your house is worth or which neighborhood you call home,” Sheffield said during a press conference announcing the order.
Do do that, her executive order requires the assessor’s office to adopt the International Association of Assessing Officers’ standards. The standards will be used as long as they do not conflict with Michigan law.
Sheffield said the city will also begin producing a mass appraisal report starting next year and every two years after. The report will explain how property values are determined across entire neighborhoods, including the data, testing, and standardized methods used in the process. City leaders say the reports are meant to improve transparency and help residents better understand their assessments.
And the order calls for refinements to neighborhood-level economic condition factors, which are used to assess similar homes within localized areas.
“Essentially what that means is that more conditions will be taken into consideration when assessing a neighborhood in a particular property. This tool is to keep assessments localized and also fair,” Sheffield said.
Residents who spoke at the press conference said rising home values, paired with tax caps, have allowed longtime homeowners to benefit from the city’s rebound without being priced out.
City leaders framed the changes as part of a broader effort to ensure fairness, clarity, and accountability in Detroit’s property tax system.
