Los Angeles County Assessor Jeff Prang told the Board of Supervisors on May 15 that taxable property values across the county are anticipated to increase about 4.75% over 2023, marking 14 years of continuous growth and breaking the $2 trillion ceiling in net total value for the first time.
The May forecast projects the anticipated growth rate for the county’s annual Assessment Roll, which closes in early July. The forecast serves as tool for local governments as they prepare their annual budgets in anticipation of property tax revenues.
The annual Assessment Roll is the inventory for all taxable property in the county and can provide insight into the real estate market and the local economy.
But not all the news is good.
Sales volume declined significantly in 2023 and commercial properties, especially in downtown Los Angeles, saw large declines in value, the Assessor’s office said.
“It has been a challenging few years as the local and national economies respond to a variety of factors, whether it be residential or commercial,” Prang said.
Although property sales, including residential, have been sluggish, home median sales prices remained strong, reaching a high of $900,000.
Property transfers are anticipated to be the largest contributor to the 2024 Assessment Roll, adding more than $51 billion.
The inflation adjustment mandated under Proposition 13 is the second most significant factor contributing to the roll, adding the maximum 2% allowable under law and resulting in an estimated $39 billion increase to the 2024 Assessment Roll.
The Assessor also expects a $6-billion increase in new construction, while property decline-in-value reductions will remove more than $2 billion from the roll.
The $2.09 trillion estimated total net value translates into more than $20 billion in property tax dollars statewide for important services such as public education, safety and healthcare.
Assessments are based on the value of real property as of Jan. 1, 2024.
—Acorn staff report