Look out for rising rental prices in the Juneau housing market, as Juneau homeowners are experiencing sticker shock from the City and Borough of Juneau’s new property assessments. Some homeowners are saying their property value increased as much as 40%.
The average increase in assessments for single-family homes in Juneau is 16%, driven by high demand and a low supply of new homes, as well as rapidly rising building costs, the city said. However, the pain is not being felt evenly, with some modest residences seeing assessment increases of over $100,000.
A citizens’ initiative that was successful in Juneau last year, repealed the mandatory disclosure of real estate sales figures to the City Assessor. The Assessor’s Office is now being accused by some of seeking revenge on the voters by increasing real estate values, which are used to set property taxes. The values are part of the mill-rate formula.
The median home value in Juneau is $355,100, with homeowners paying an average of $3,492 in property taxes to the City and Borough of Juneau. The Assessor’s Office defended the increases in its report, citing the high demand for homes, low supply of new homes, and rapidly rising building costs as driving factors. The report notes that the national residential housing market has begun to soften following a peak in June 2022, but there is no clear evidence that this trend is occurring at a local level.
The increase in property values is a result of homes being sold for more than their asking price due to multiple offers and escalating contingencies from buyers trying not to be outbid, the report said. Some homes were even purchased with additional cash above and beyond what could be financed based on a market appraisal. The Assessor’s Office warns that inflationary pressures and low liquidity in the marketplace will continue to drive sale prices within the Juneau market to higher levels.
Commercial properties saw an increase of about 6%, the Assessor’s Office said.
