Mayor Sheffield announces $500M gains in Detroit home values, issues Executive Order directing Assessor to align assessment process with national standards

• 11th straight year of home value increase; average increase 10%, with many neighborhood values up 30-40% since last year
• Homeowners protected by 2.7% cap on tax increases this year
• Homeowners to start receiving notices of proposed assessment change by first week of February; appeals process open through February 22
• Mayor's Executive Order for Assessor's office designed to build trust and transparency, aligns with IAAO national standards

For the 11th straight year, Detroit home values are up, this time by an average of 10% citywide, adding $500 million in wealth for Detroit homeowners, Mayor Mary Sheffield announced today. The Mayor also signed the first executive order of her administration, instructing the Assessor to take a number of steps to bring the assessment process into alignment with national best practices and allow for greater transparency in the city's assessment process.

The home value gains in 2026 bring the total value of Detroit's residential property to $10.5 billion. They are also on top of the gains reflected in a University of Michigan study released last year that showed Detroit homeowners had gained $4.7 billion in new wealth from rising property values since 2014.

This year's rise in value will be reflected in an annual notice of proposed property assessment changes for 2026, which will begin arriving in mailboxes this week.

"As Detroit Rises Higher, Detroit homeowners are building generational wealth that can change lives," said Mayor Sheffield. "As my administration places an increased focus on the revitalization of all neighborhoods, we expect even more generational wealth will be created."

Many neighborhoods in Detroit continue to show home value appreciation in 2026. Some examples include:

• District 1: Five Points South, 28.69%
• District 2: Dexter/Linwood, 29.93%
• District 3: Buffalo/Charles, 40.09%
• District 4: Connor-Jefferson-Marina, 37.71%
• District 5: Pingree Park, 25.78%
• District 6: North Corktown, 26.67%
• District 7: Plymouth/I96, 27.05%

Market sales determine assessed value

To determine this year's assessment, the city examined over 16,500 market sales over two years (April 1, 2023, through March 31, 2025) to compute the proposed 2026 Assessments. The Office of the Assessor also reviews aerial and street-level imagery of properties to determine valuation. Below is a breakdown of residential neighborhoods that saw growth in their assessed value:

• 47 out of 286 neighborhoods (16.4%) had an increase in value under 10%
• 56 out of 286 neighborhoods (19.5%) had an increase in value ranging from 10% to 19%
• 42 out of 286 neighborhoods (14.6%) had an increase in value ranging from 20% to 29%
• 27 out of 286 neighborhoods (9.4%) had an increase in value ranging from 30% to 39%
• 9 out of 286 neighborhoods (3.1%) had an increase in value ranging from 40% to 49%
• 5 out of 286 neighborhoods (1.7%) had an increase in value over 50%

Values rise, while taxes are capped

While the assessed value of homes has increased this year, homeowners are protected under Michigan's constitution from large tax increases. Any home prior to 2025 that gained value would see a property tax increase of 2.7% compared to last year's rate. When a home changes ownership, the cap is lifted, and the taxable amount adjusts to the State Equalized Value the year following the transfer and is protected by the cap in the following years as long as it remains in the same ownership.

Property owners to receive revamped proposed assessment notices

Notices have been mailed to the City's over 308,000 residential, commercial, industrial, and personal property owners, advising them of their proposed assessments for 2026. These are not tax bills. Actual bills will be mailed out at the end of June (summer) and November (winter) by the City of Detroit's Office of the Treasury.

For the third year, residents are receiving revamped assessment notices that are in accordance with the Property Tax Reform ordinance passed by City Council. Notices are in larger print and have much more information about the assessment appeals process.

Mayor issues first Executive Order, builds trust and transparency in Assessor's office

In a bold move to build trust and transparency in the Assessor's Office, Mayor Sheffield has issued an Executive Order directing the Assessor to make sweeping changes that align with the International Association of Assessing Officers (IAAO) national standards in assessments.

Assessments have long been questioned by Detroiters, and this is a significant effort to demonstrate that this administration is taking steps to make improvements while gaining trust, said Mayor Sheffield.

The Mayor's EO directs the Assessor to adopt IAAO ratio standards, produce a biannual mass appraisal report and prioritize modifying the city's existing residential Economic Condition Factors (ECFs).

• Ratio Standards are statistical gauges that will serve as a quality control tool, allowing the Office of the Assessor to verify that property values are closely aligned with actual market activity. Ratio standards act as the primary metric for internal auditing and can identify neighborhood inequities.
• The Mass Appraisal Report explains how the Office of the Assessor arrived at the values for an entire neighborhood. This report provides transparency and accountability in the documented, repeatable methodology that proves the valuation process was fair.
• By Prioritizing Modifying ECFs (Economic Condition Factors), the Assessor's office ensures that property owners aren't assessed based on general construction costs, but rather the market value of the property in their specific neighborhood. This is a tool to keep assessments localized and fair.

"The purpose of this EO is to create an environment where Detroiters can feel confident that the assessment practices are transparent and equitable," the Mayor said. "While the IAAO ratio study has confirmed that the Office of the Assessor is compliant with Michigan law, and our Assessment Roll has been certified and equalized by the state's own practices, there is still doubt as to the fairness of assessments in this city. This is a continuation of the process to restore trust in this process."

Detroit homeowners should feel confident in the steps being taken to build trust and transparency in our Assessor's office. At the same time, homeowners who stayed can also feel confident that their property is more valuable today than it was 11-years ago, a real sign of stabilization in our neighborhoods that ultimately benefits the City as a whole, said Tanya Stoudemire, Chief Financial Officer.

Deadline for assessment appeals extended

Under State law, property owners have the right to appeal the proposed changes. The proposed 2026 Assessments are tentative until the completion of the local review period in March and any possible changes from the Wayne County Assessment and Equalization Department in April.

Residents will have three weeks to appeal all assessments; the City of Detroit has permanently extended the Assessor Review from February 1st through February 22nd The Office of the Assessor is available to answer questions Monday-Saturday. The Assessors Review appeal process encourages all property owners to take advantage of their right to question how their property is valued during this time.

Some eligible tenants may also appeal

City Ordinance has expanded the type of person who may consider themselves harmed by an assessment and make a complaint before the City's Board of Assessors. In addition to persons liable to be taxed and therefore on the assessment roll, such as the owner, or that person's agent, other persons with certain documented financial or legal interests may file a complaint with the Board of Assessors. Required documentation may include a lease agreement assigning responsibility for paying the property taxes to the person, a receipt showing or an affidavit attesting that the individual paid a portion of the property taxes in a preceding year, a land contract in the person's name, or any other document proving a financial interest in the property.

How to file an appeal

Anyone with questions regarding their assessment, may email the Assessor's office at [email protected]. Appeals can be submitted online, by letter, or in person. Property owners can also submit their appeal in person Monday-Thursday, 8:00a.m. to 4:30 p.m. at the Coleman A. Young Municipal Center, in the Detroit Taxpayer Service Center Suite 130. Anyone wishing to address the Office of the Assessor in person will have the opportunity to do so via teleconferencing or by appointment.

To file an appeal online, visit detroitmi.gov/PropertyTaxAppeal (available February 1 through 22nd by 4:30 p.m.). To file an appeal by mail (must be postmarked to the Office of the Assessor by February 22, 2026) send to:

City of Detroit

Office of the Assessor - ABOR

2 Woodward Ave Suite 804

Detroit MI 48226

The City of Detroit March Board of Review begins March 4 and ends March 28. Any property owner or their agent who wishes to present to the Detroit Board of Review will have that opportunity. A completed petition to the March Board of Review must be filed by March 9, 2026, 4:30 p.m. to schedule a hearing. Teleconferencing is encouraged.

Commercial, Industrial, and Personal Property owners may, appeal to the March Board of Review, or if they chose, proceed directly to the Michigan Tax Tribunal. The deadline to appeal directly to the Michigan Tax Tribunal is May 31.

Help with property taxes for those in need

Through the Homeowners Property Tax Exemption (HOPE) program, homeowners can qualify for 10%, 25%, 50%, 75%, or a 100% reduction in property taxes, depending on household income. The deadline to apply is November 6, 2026. For more information on HOPE, go to detroitmi.gov/HOPE.

Link to Executive Order can be found here.

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