The value of black homeowners in Detroit increased by almost $3 billion

According to the most recent study conducted by University of Michigan Poverty SolutionsBlack homeowners in Detroit saw their home values ​​will increase by $2.8 billion between 2014 and 2022. These numbers resulted in an overall increase in the general value of owner-occupied homes in town from $4.2 billion in 2014 to $8.1 billion in 2022, a 94% increase.

While the report’s numbers are positive for Detroit’s recovery from its 2014 bankruptcy, the conclusions include a warning that rising home values ​​could prove problematic for renters and will result in some homeowners being priced out of neighborhoods.

“This increase in housing wealth positively reflects the efforts of many stakeholders to improve Detroit’s housing market and strengthen its neighborhoods since the bankruptcy, including initiatives to remove blight and remediate blighted properties,” the report says. “At the same time, many challenges remain and more work needs to be done to increase demand for housing and make neighborhoods more attractive locations for potential homebuyers.”

The report also notes that it relies on certain limitations and assumptions based on available data, but that the report may nevertheless underestimate the extent of wealth that homeowners have generated in consequence of the rise in the value of their homes.

Detroit Mayor Mike Duggan on the press conference he praised the resilience of the residents who remained.

“For decades, Detroit homeowners have seen family wealth decline as home values ​​decline,” Duggan said, in keeping with the Associated Press. “Now, those who remain, particularly Black homeowners, have gained nearly $3 billion in new generational wealth thanks to the return of our city’s neighborhoods.”

Duggan continued: “When I took the oath of office 10 years ago, 1,000 people a month were leaving this city. People were saving themselves left and right in Detroit. Those left behind are $4 billion better off because they bet on the city of Detroit.”

Ken Scott, former president of the Detroit Realtist Association and the Detroit Association of Realtors of Realtors and a HUD certified housing counselor, said in a news release that the study is consistent with what has been discussed by Detroit realtors over the previous couple of years.

“There has been a huge change for the better in home values ​​in Detroit, driven largely by improvements being made to neighborhoods…Black-owned homes are increasing in value, and Black families are gaining the most family wealth,” Scott said. “And although home values ​​have increased dramatically, many changes are still ahead. Detroit homes are beautiful and dollar for dollar they still represent great value.

Melvin Chuney, a black homeowner, said at a news conference that he sees improvement.

“It’s amazing and it’s true,” Chuney said. “It is much more valuable than it was 10 years ago. People are fighting to get into this district, which was a place where people were fleeing just a few years ago.”