Report promotes land bank’s impact amid debate over its future

December 17, 2025

An economic impact study commissioned by the Detroit Land Bank Authority found that the agency has generated approximately $2 billion in property value increases since 2014 through its rehabilitation and demolition activities. The research revealed that rehabilitating blighted properties into occupied homes produces roughly three times greater impact on surrounding property values compared to demolitions, with each rehabilitation increasing nearby home values by an average of $90,890 versus $30,092 for demolitions. As Detroit's largest property owner managing about 66,000 parcels, the land bank's operations are estimated to account for up to 40 percent of the city's total home value growth over the past decade.

Who is affected

Homeowners living within 500 feet of properties rehabilitated or demolished by the Detroit Land Bank Authority
Detroit City Council (particularly Council Member Mary Waters and Mayor-elect Mary Sheffield)
Detroit Land Bank Authority staff, including Rob Linn (director of planning) and CEO Tammy Daniels
Outgoing Mayor Mike Duggan
Detroit residents who have purchased side lots or interacted with the land bank
Small investors involved in property rehabilitation projects
Property owners in City Council Districts 3 and 5 (which experienced the most activity)
Owners of the 1,173 rehabilitated houses that fell back into tax delinquency or foreclosure

What action is being taken

Detroit's City Council has renewed a one-year operating agreement with the land bank
The land bank is implementing improvements to purchasing processes and community engagement as outlined in its new five-year strategic plan
2,800 rehabilitations are currently underway
Mayor-elect Mary Sheffield is considering rolling some land bank functions under the city's housing department

Why it matters

This matters because the land bank's activities account for up to 40% of Detroit's citywide home value growth over the past decade, representing billions of dollars in economic impact and continuously growing property tax revenue. The agency possesses unique legal powers under state law that allow it to clear titles quickly, eliminate liens, and hold property without paying taxes—capabilities the city government itself does not have. The land bank manages a vast portfolio of approximately 66,000 parcels across virtually every Detroit neighborhood, making its effectiveness crucial to the city's ongoing recovery from blight and abandonment. The debate over its future operations and governance structure will significantly impact Detroit's approach to managing vacant properties and neighborhood revitalization.

What's next

Council Member Mary Waters' proposed amendments will be reconsidered in 2026
Mayor-elect Mary Sheffield will determine the final structure and reforms for the land bank, with increased power through her ability to appoint four of five land bank board members
The report recommends targeting land bank programming and investment toward properties that slip back into distress, either through demolition in weak markets, protection of small investors, or holding properties back into inventory for future use
The 2,800 rehabilitations currently underway could add an additional $600 million in property value upon completion

Read full article from source: bridgedetroit.com