Current:Home > ScamsHome values rising in Detroit, especially for Black homeowners, study shows -WealthX
Home values rising in Detroit, especially for Black homeowners, study shows
View
Date:2025-04-18 07:02:36
DETROIT (AP) — Home values in Detroit — especially for Black residents — have increased by billions of dollars in the years following the city’s exit from the largest municipal bankruptcy in U.S. history, according to a study released Tuesday.
The University of Michigan Poverty Solutions report says added home value for Black residents increased 80% between 2014 and 2022.
For Black homeowners, estimated home values rose from $3.4 billion to $6.2 billion over that period, while the net value of all owner-occupied homes in the city increased from $4.2 billion to $8.1 billion.
“For decades, Detroit’s homeowners saw their family wealth evaporate as home values declined,” Mayor Mike Duggan said. “Now, those who stayed, most notably Black homeowners, have gained nearly $3 billion in new generational wealth because of our city’s neighborhoods comeback.”
With the city facing a budget deficit north of $300 million and debt of $18 billion or more, a state-appointed manager filed for bankruptcy in July 2013. Detroit exited bankruptcy in December 2014 with about $7 billion in debt restructured or wiped out. Since that time, the city has produced balanced budgets and surpluses, improved services and reduced blight.
Much of Detroit’s improvements are visible in its vibrant downtown and Midtown areas, but increased home values were geographically dispersed in neighborhoods across the 139-square-mile (360-square-kilometer) city.
Neighborhoods among the poorest in 2014 — especially those with high concentrations of Hispanic and Latino residents — showed the most growth in home and property value, the University of Michigan study said.
The average home sale price in 2014 for homes in the Condon neighborhood was about $7,500. By 2022, the price was more than $71,000.
Helping the turnaround has been a 95% reduction in tax foreclosures since 2016 across Detroit, according to the study.
Detroit’s overall population is about 639,000, according to the 2020 Census. About three-quarters of the city’s residents are Black.
Black homeowners represented 82% of all housing wealth generated in 2014 and 77% in 2022, according to the study.
White homeowners in Detroit had the second largest share of net housing wealth, accounting for 11% of net wealth in 2014 and 13% in 2022. Hispanic homeowners had 4% and 6%, respectively.
Duggan was elected mayor in November 2013 and has guided the city’s comeback since the start of 2014. He announced last week that Detroit has surpassed $1 billion in combined public/private investment that has created more than 4,600 affordable rental units over the past five years.
Over the past few weeks, two rating agencies also have raised Detroit’s credit rating to investment grade.
“Ten years on from its bankruptcy filing, Detroit’s financial position and economic condition are the strongest they’ve been in decades,” S&P wrote in its report. “Liquidity and reserves are at record levels, the debt burden is manageable, population decline is flattening, the stock of blighted and vacant properties is down considerably thanks to extensive city-managed programs, assessed property values have increased in five consecutive years.”
veryGood! (75548)
Related
- IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
- Prosecutor failed to show that Musk’s $1M-a-day sweepstakes was an illegal lottery, judge says
- US Diplomats Notch a Win on Climate Super Pollutants With Help From the Private Sector
- Crews battle 'rapid spread' conditions against Jennings Creek fire in Northeast
- Tarte Shape Tape Concealer Sells Once Every 4 Seconds: Get 50% Off Before It's Gone
- Whoopi Goldberg Shares Very Relatable Reason She's Remained on The View
- The results are in: Peanut the Squirrel did not have rabies, county official says
- 2025 NFL mock draft: QBs Shedeur Sanders, Cam Ward crack top five
- Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
- Elton John Details Strict Diet in His 70s
Ranking
- US appeals court rejects Nasdaq’s diversity rules for company boards
- Mike Tyson vs. Jake Paul press conference highlights: 'Problem Child' goads 'Iron Mike'
- Footage shows Oklahoma officer throwing 70-year-old to the ground after traffic ticket
- 'Cowboy Carter' collaborators to be first country artists to perform at Rolling Loud
- Israel lets Palestinians go back to northern Gaza for first time in over a year as cease
- 'Full House' star Dave Coulier diagnosed with stage 3 cancer
- Kathy Bates likes 'not having breasts' after her cancer battle: 'They were like 10 pounds'
- Investigation into Chinese hacking reveals ‘broad and significant’ spying effort, FBI says
Recommendation
Former Danish minister for Greenland discusses Trump's push to acquire island
Avril Lavigne’s Ex Mod Sun Is Dating Love Is Blind Star Brittany Wisniewski, Debuts Romance With a Kiss
Kendall Jenner Is Back to Being a Brunette After Ditching Blonde Hair
Mandy Moore Captures the Holiday Vibe With These No Brainer Gifts & Stocking Stuffer Must-Haves
House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
He failed as a service dog. But that didn't stop him from joining the police force
1 million migrants in the US rely on temporary protections that Trump could target
2025 NFL mock draft: QBs Shedeur Sanders, Cam Ward crack top five