Current:Home > InvestHome values rising in Detroit, especially for Black homeowners, study shows -Momentum Wealth Path
Home values rising in Detroit, especially for Black homeowners, study shows
View
Date:2025-04-14 01:03:35
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! (89)
Related
- Selena Gomez's "Weird Uncles" Steve Martin and Martin Short React to Her Engagement
- RHOC's Tamra Judge Slams Disgusting Ozempic Claims After Suffering Intestinal Obstruction
- NY congressman says he would support bill linking Ukraine and Israel aid
- 6.3 magnitude earthquake hits Afghanistan days after devastating weekend quakes
- Selena Gomez engaged to Benny Blanco after 1 year together: 'Forever begins now'
- Why Brody Jenner Drank Fiancée Tia Blanco's Breast Milk in His Coffee
- How RHOSLC's Angie Katsanevas & Husband Shawn Are Addressing Rumors He's Gay
- A Rural Pennsylvania Community Goes to Commonwealth Court, Trying to Stop a New Disposal Well for Toxic Fracking Wastewater
- Senate begins final push to expand Social Security benefits for millions of people
- Aaron Rodgers says he's not in 'vax war' with Travis Kelce, but Jets QB proposes debate
Ranking
- The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
- California-based Navy sailor pleads guilty to providing sensitive military information to China
- Diamondbacks are stunning baseball world, leaving Dodgers on the brink of elimination
- Review: Daniel Radcliffe’s ‘Merrily We Roll Along’ is as close to perfect as Broadway gets
- The Best Stocking Stuffers Under $25
- Vanderpump Rules' Raquel Leviss Auctioning Off Scandoval Lightning Bolt Necklace for Charity
- Kayla Nicole Shares Powerful Message Addressing Backlash Amid Ex Travis Kelce's Rumored Romance
- 'Always worried about our safety': Jews and Palestinians in US fearful after Hamas attack
Recommendation
The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
Why Meghan Markle Says She's Frightened for Her Kids' Future in a Social Media Age
Former New York congressman wants to retake seat as Santos’ legal woes mount
NSYNC is back on the Billboard Hot 100 with their first new song in two decades
Pregnant Kylie Kelce Shares Hilarious Question Her Daughter Asked Jason Kelce Amid Rising Fame
Orioles' Dean Kremer to take mound for ALDS Game 3 with family in Israel on mind
Russia will only resume nuclear tests if the US does it first, a top Russian diplomat says
Suspect fatally shot by San Francisco police after crashing car into Chinese Consulate