The booming Los Angeles real estate market has seen unprecedented growth in the last year. In fact, according to the LA County Assessor, the annual property tax Assessment Roll shows an impressive 3.7% growth over the last year due to the thriving housing market. And truth be known, without the assistance of California Prop 13, Prop 19, and Prop 60, which limits increases in assessed values and property taxes in the state, the Los Angeles property tax roll number would be so much higher than the $1.76 trillion value given.
The Assessment Roll, completed in June of this year, is essentially a list of all the taxable properties within the county which includes 2.58 million real estate parcels as well as business assessments. There are 1,885,879 single-family homes, around 250k each of apartment complexes and commercial/industrial properties, and more than 160k business property assessments that contributed to that number.
This data is compiled each year by the LA County Assessor for homeowners to review, as it is the Assessment Roll that is actually what Los Angeles property taxes are based upon. It also indicates the current real estate market value and growth rate, which is obviously growing in leaps and bounds this past year, leading to the county’s escalated Assessment Roll.
The Los Angeles Assessor’s report indicated that “property assessments are based on the value of the property as of the lien date of January 1, 2021.” The report further indicated that the Assessment Roll grew to 3.7% this year, which equals the average increase of property values in Los Angeles County. This is the 11th year in a row that LA has seen this type of growth rate.
The assessed value for real estate in Los Angeles County is more than $1.7 trillion. These properties will generate over $17 billion in Los Angeles property tax revenue which will be used for local government as well as education/schools.
Property sales in Los Angeles County are solely responsible for this sharp increase in the Assessment Roll. Increases in the real estate market are attributed to low inventory and historically low mortgage interest rates. Even with COVID-19 and the recession, the LA real estate market is thriving. The average single family home price in Los Angeles County rose 21.9% and the market continues to thrive.