The taxes are high because of the high amount of people moving out of Detroit (and Michigan) leaving the burden of their tax bill to their neighbors that decided to stay in Detroit. Remember in the 1960's Detroit city population was close to 1.5 million now it is in the 800's. That is roughly 700,000 people that the Detroit homeowner's have to make up for in their tax bill. With the foreclosure crisis (more vacant homes and lower population because if it) that we are fighting it is deepening the level of taxation that individuals in this city are paying. This combined with the lack of employment opportunities (structural unemployment - low skilled area, only 11 percent of the population holds a bachelor's degree) in this area is going to have a significant impact in city taxes and eventually this city's future. My opinion is to not touch this hot potato unless you buy significantly below the market average price and have stable income that is not connected to the big 3. Once the political climate seen dies this city it will most likely normalize and corporate investment will bring about jobs and economic prosperity. The political climate seen presently in this particular region has put a tamper on any type of investment. Based upon all the facts that I have laid out this epidemic has created an unprecedented shift in the demographics in neighborhoods of this region. So, if one wants to invest in this area or areas like it I think that researching the neighborhood demographics and stats of the characteristics of the buyers moving into this area will be a smart investment of time! You do not want to invest into a new urban battlefield!! In doing this research you can use LEDH website to monitor the demographics of your desired neighborhood.
Vincent Harris Lyons
State of Texas