DETROIT (WXYZ) — It’s going to likely cost you a bit more this year to buy a house in Detroit.
The city revealed its assessment of property values. The average? A 20-percent increase for single-family homes compared to 2022.
But some neighborhoods are seeing values doubling!
The Northend neighborhood, for example, had a 102 percent increase, and the Herman-Kiefer neighborhood? 120 percent!
But the one area of Detroit leading the way in property value change is Corktown.
“I was born in Detroit, so (out to her) I’ve been a resident for 71 years,” says Corktown resident Debora Foster.
That's a lot of change Debora Foster has witnessed over the years in Corktown, but you’d only have to live in the city’s oldest neighborhood for a single year to feel a seismic shift.
Single-home property values are an astounding 130 percent higher here than a year ago.
“That property value going up, Is that good news for you?” I asked.
“Wellll... Yes and no. I say yes because, well, I never expect it to go up that much. But, of course, when the property value goes up, the taxes go up and there’s a lot of people that are not as fortunate as probably you and myself, that cannot afford to pay what they’re asking for rent now,” she says, “I’m just being honest.”
We went to realtor Matt O’Laughlin for answers on what’s fueling the ballooning property values.
‘So, Ford obviously have, they have started working on the train station, that’s due to be complete in the next year or so and that’s spurred a ton of activity so,” he says. “I sold a condo about 4 blocks over 3 years ago for about 650 thousand, Ford made their announcement and then it resold for 1.1.”
It’s not just Ford though that’s driving values up, it's Corktown’s people not giving up their homes.
“You don’t see too many single-family homes come on the market in Corktown. The ones that do get into multiple offer situations,” says O’Laughlin. “It was on the market 3 days; it got 10 offers plus on it.”
So as Corktown Detroiters see more equity, it does become a decision for people like Debora: stay and pay the pricier taxes or drive away.
“You know, if you bought a house for 40 thousand and now it’s worth 400 thousand. I mean, you’re not saying ‘I’m outta here’,” she says.
