Michigan home- and business owners have lost an astounding $180 billion from the value of their properties over the past four years — the result of auto company bankruptcies, a severe national recession and the worst state economy in more than 70 years — according to an analysis of state data by Bridge Magazine.
Adjusted for inflation, property values have plunged 27 percent since 2007. In other words, Michigan homeowners and businesses have lost about $1 in every $4 of property value they once possessed.
The $180 billion loss in value is an amount five times larger than General Motors’ market capitalization. It represents an average loss of $18,200 for every Michigan resident.
The average price of a home is down 24%. Industrial property suffered the biggest decline at 29%. Commercial property dropped 10%. The only property that saw an increase in value was agricultural, and that was 1%. The communities of Pontiac and Hazel Park saw a "staggering" 50% drop in property value in the past four years. Wow.
State and local government has lost $1.2 billion in taxes. Schools have lost $230 million. The Southeast Michigan Council of Governments predicts that values will keep falling through 2014 - which will take even more revenue from schools and local government services.
And just think, the Snyder administration wants to exacerbate the situation by cutting another $1.2 billion in taxes out of the budget. You can afford private schools and security, can't you? No? Well, that's just too darn bad for you.
Go read the whole thing if you're up to it. Very informative work.