Detroit’s Quick-Moving Tax Break Plan Sparks $1.2 Billion Affordable Housing Surge

A bold tax break push in Detroit has drawn around $1.2 billion toward new homes since last fall. Workers have started on thousands of units across town, while more wait in the wings.

City officials cut red tape, slashing wait times to 60 days instead of 12 months. Those who build lower-cost homes now skip most property taxes, paying just 5% of the normal rate.

"We felt like it was worth it to give a 95% tax break to put affordable housing in the neighborhood and save these beautiful buildings," Mayor Mike Duggan said. "This is happening now in neighborhood after neighborhood across the city."

Fresh numbers show 2,400 units cleared for construction, bringing $451 million in funds. Six thousand more homes worth $765 million sit ready for final sign-off.

Take the old Dexter-Linwood spot at 3045 Cortland. What has been an empty building will soon house 34 families at prices they can manage, thanks to these new rules.

City staff push to trim wait times even more - down to a month flat. This swift process helps builders keep costs low while fixing up old structures that give each street its own look.

When the Council passed these changes last year, they aimed to fix two problems at once: not enough low-cost homes and too many old buildings falling down.

Local groups pitched in to help shape the plan. Now they watch as new life comes to old blocks, keeping what makes each spot special while making room for more neighbors.