The city’s property valuations were released last week, and most Richmond homeowners have enjoyed another year of strong increases in property values, the latest reflection of the scorching housing market on residents’ tax bills.
Driving the news: The average assessed value of a Richmond home jumped 13.04% for 2023, down slightly from last year 13.35% increase.
Enlarge: 13.04% is the average increase across the city’s 82 neighborhoods, but more than half – 57 neighborhoods – saw significantly larger increases, with some of the biggest jumps hitting previously more affordable areas of Richmond.
Why is this important: The average Richmondian pays nearly $1,000 more a year in property taxes than before the pandemic.
- And since home insurance is calculated based on the value of the home, these rates often go up along with taxes.
- That year, the average assessed value rose to $247,000, and Richmond residents paid an average annual property tax of $2,964.
- For 2023, the average assessed value reached $324,000 with an average tax bill of $3,888.
What is happening: The COVID-era real estate market, which has seen low inventory, bidding wars, an influx of new residents working remotely and rising rents pushing more people to buy, “has produced a perfect economic storm of market value,” city assessor Richie McKeithen told Axios.
- “We must appraise each year at market value, as required by the State Law“, added McKeithen.
The plot: Monument Avenue had the lowest increase in the city at 3.99%.
- City assessor Charles Evers, whose district includes the 225 homes in the Monument Avenue neighborhood, told Axios that there were more home sales than usual in the area, making assessments more precise.
How it works: The city’s appraiser’s office uses a mass appraisal computer system, McKeithen tells Axios, and then a 33-person team analyzes the data, reviews homes sold nearby and whether any permits have been pulled for the property improvement.
- “Assessments are normally much more conservative than market value,” McKeithen said. “Especially in the last two years, the market is so robust.”
Threat level: The city’s property tax rate is among the highest in the region at $1.20 per $100 of assessed value, and the Richmond City Council Last year rejected a proposal to cut the rate to $1.135.
Be smart: Owners can submit a written appeal with the assessor’s office until September 30.
- The tax relief is availablebut by current State Lawit is limited to seniors who earn $60,000 a year or less and people with disabilities.
What they say : Making financial aid available to more Richmond residents would require action by state lawmakers, McKeithen told Axios.
- “There’s a slew of people who aren’t elderly or disabled who need help. Other states have things that help protect long-term residents,” McKeithen said.