Los Angeles County’s total assessed property value topped $1.7 trillion this year, a $100 billion increase over 2019, according to figures released Tuesday.
The 2020 annual report from the Los Angeles County Office of the Assessor, shows that year-over-year growth landed just above the region’s 8-year average rate of 5.84%.
The report, based on values as of Jan. 1, 2020, does not include assessments amid the COVID-19 pandemic.
“The Assessor’s Office identifies and values taxable property, but its impact to the public is far greater,” Assessor Jeffrey Prang said in the report. “The $1.7 trillion in total net value translates to about $17 billion for vital public services such as fire, public health and education.”
A breakout in the report shows that 40% of that $17 billion went to school districts, while 24% went to unincorporated areas, 15% went to unincorporated cities, 14% went to successor agencies and 7% went to special districts.
The pre-pandemic assessment role shows Inglewood posted the highest annual growth of 13.6%, followed by El Segundo (8.5%), Palmdale (7.5%), Pomona (7.3%) and Manhattan Beach (7.1%).
In terms of sheer magnitude, the city of Los Angeles remains the county’s 600-pound gorilla with a total assessed property value of nearly $696 billion. That was up 6.6% over the previous year with 865,695 properties assessed.
Here are the Top 5 cities, total assessed property value, year-over-year change and properties assessed:
- Los Angeles — $695.9 billion, up 6.6%, 865,695 properties assessed
- Long Beach — $63.4 billion, up 5.4%, 118,247 properties assessed
- Santa Monica — $42.3 billion, up 7%, 27,243 properties assessed
- Beverly Hills — $39 billion, up 6.6%, 13,126 properties assessed
- Santa Clarita — $37.2 billion, up 5.8% , 72,261 properties assessed
Property value growth is fueled by a number of factors, with the biggest being properties that are sold. Other value-boosting factors include an adjustment for inflation, new construction and business personal property taxes and fixtures.
The 2020 report’s leading growth factors:
- Real estate transfers: $49.6 billion
- Consumer price index adjustment: $30.8 billion
- New construction: $13.3 billion
The report also tracks “decline-in-value” properties that have had their value reduced to account for a loss in market value. The 2008 financial crisis and the ensuing years saw hundreds of thousands of property value declines, although much of those values have been since been restored.
In 2008, 131,000 properties had their values reduced, but that wasn’t the worst of it. That number hit 351,000 the following year and topped out at 426,000 properties in 2010. In 2019, only 80 county properties were reduced in value and that number fell to 69 in the 2020 report.
L.A County’s total assessed property value of $1.7 trillion is up from $1.6 trillion in 2019, $1.51 trillion in 2018, $1.42 trillion in 2017, $1.33 trillion in 2016 and $1.26 trillion in 2015. That amounted to $440 billion in growth over the past five years.
Prang said the next report will likely be less upbeat as a result of this year’s ongoing health crisis.
“January 1, 2021 could tell a different story,” he said. “Decline-in-value relief will likely be available for many property owners due to COVID-19’s impact on the market.”
Source: Orange County Register
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