Bay Area Edition | July 2022

2022 REAL ESTATE EDITION

Expensive leasing

are therefore working on solutions. One idea is for the state to switch to a price-paid system. Under this system, a property’s appraised value would be locked to the amount at the date of purchase. It would remain there unless the house underwent major renovations or it was sold, in which case a new value would be appraised and locked in, Johnson said. Homeowners are partly respon- sible for economic development, which occurs in growing areas, and homeowners want their commu- nities to be attractive, all of which results in increasing home values, Johnson said. A price-paid system reduces the number of residents who help make areas successful from being taxed out of their homes and allows homebuyers to know upfront what their taxes will be and what is aordable, she said. Another idea is to lower the statewide homestead exemption appraisal cap from 10% to a maxi- mum of 5% and to appraise homes every other year rather than annu- ally. Additionally, the change would apply to all homeowners, not just those with exemptions.

apartments have increased across the Greater Houston area. League City and Houston have seen median one-bedroom rents rise by 22.8% and 15.4% in the last year, respectively—the second and third highest among eight Houston-area cities, including Pearland and Sugar Land. For median two-bedroom rents, the increases are 14.8% and 20.9% year over year for League City and Houston, respectively. Additionally, League City’s median one-bedroom rent is $1,130, and Houston’s is $1,200, second only to Sugar Land’s at $1,250. The state median is $1,114. “The demand drives it all just like demand drives every other thing we are hearing about,” McClenny said. “I think we’re getting more demand because of the single-family stream. When you’re priced out and give up trying to buy, renting is your only other option.” Shawn Arrajj & Andy Yanez contrib- uted to this report.

Johnson believes appraisal reform has a good chance of passing in the upcoming state leg- islative session. said she Several Galveston County cham- bers of commerce in April signed a letter asking the Texas House Ways and Means Committee to address appraisal reform, saying “swelling property appraisals are ... siphoning o the hard-earned prots of everyday Texans.” Galveston County Commis- sioners Court on April 18 passed a res- olution supporting the state capping appraisal increases at 3.5% annually. Politicians who want to stay in oce must respond with reform, Johnson added. “People get tired of hearing the same old promises and no action,” she said. “They can’t do this anymore. They’ve reached critical mass.” Rent increases The rise in property values is aect- ing homeowners when it comes to taxpaying time as well as those seek- ing to rent out apartments. According to a May 31 report by Zumper, a site where users can nd rentable housing, rents for

A May report revealed Houston and League City one-bedroom median rental rates remain higher than the state median.

$1,250

Sugar Land

$1,200

Houston

$1,200

Pearland

$1,180

Spring

$1,130

League City

$1,114

Texas

$1,090

Conroe

$980

Galveston

$850

Pasadena

SOURCE: ZUMPER.COM COMMUNITY IMPACT NEWSPAPER

For more information, visit communityimpact.com .

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BAY AREA EDITION • JULY 2022