The average market value for properties with homestead exemptions in Montgomery County has increased 104.55% in 12 years, with the most signi cant jump in property values coming from 2021-22. In nine of the last 12 years, the average market value saw single-digit increases. PROPERTY VALUES ON THE RISE
PROTESTS
OVER THE YEARS The number of people ling a protest with Montgomery County about their appraised value has grown along with the number of properties in the county since 2015. Properties in Montgomery County Protests 330,288 291,575
+28.9% +2.5% +0.5% +3.5% +10.9% +11.2% +6.2% +1.1% -0.6% +4.8% +4% +3.1%
$400,000
$350,000
$393,747
$300,000
$250,000
$192,486
$200,000
$150,000
+13.27%
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$65,620 $68,838
2010 2015 2020 2010 2015 2020
SURPASSING INCOME The rate at which the median income has increased in Montgomery County since 2010 has not kept up with the rise in property values during that time.
MEDIAN INCOME IN MONTGOMERY COUNTY AVERAGE MARKET VALUE INMONTGOMERY COUNTY
+55.01%
+26.9%
61,029
$83,274
39,369
$192,486
+52.83%
$253,073
$294,188
SOURCES: U.S. CENSUS BUREAU 5 YEAR AMERICAN COMMUNITY SURVEY ESTIMATES, MONTGOMERY CENTRAL APPRAISAL DISTRICT COMMUNITY IMPACT NEWSPAPER
The appraisers consider market transactions from home sales, and since so many homes have been sold above the asking price, this drives the market value up, according to Dick Lavine, senior scal analyst with Every Texan, an Austin-based public policy center. “Everyone expected the market to take a hit during COVID-19,” Belinoski said. “Instead, the exact opposite happened.” For example, according to a May 3 release from the Houston Associa- tion of Realtors, the median price of a single-family home in Houston has increased nearly $80,000 in the last two years. Homeowners can protest appraised values if they feel they are inaccurate and receive an informal hearing with the Appraisal Review Board; the pro- test deadline is May 15. Despite no guarantee of getting appraised values reduced, Belinoski said in an email he encourages prop- erty owners to protest, especially if they believe the market value is inac- curate and can provide information to warrant an adjustment. County data shows the number of protests led has increased about 55% from 2015-21. “Most of the time [the ARB and
“What bothers me the most, and I think other people, is the complex nature of determining what your property taxes are,” Conroe home- owner Rich Eimer said. Adam Perdue, research economist at the Texas Real Estate Research Cen- ter, said the center is expecting the housing market to slow over the next year and prices to decrease. In the Houston area between 2020-21, there was a 21% increase in home prices, when typically there is a 5% increase over a two-year span, Perdue said. “We expect to see [prices] fall back much closer to that 5% or even fall below it. We are expecting to continue to see it be a positive [increase] but slower than what we have seen over the past two years,” he said. Although property values increased, taxing entities are limited to how much they can raise their property tax revenue. Counties and cities are limited to a 3.5% increase and schools to 2.5%, Perdue said. “Taxing jurisdictions look at that [appraisal valuation] and they gure out what their rate will be, and that [tax] rate almost has to fall. [Taxing jurisdictions] don’t necessarily need more revenue because the valuation increased,” Perdue said.
homeowners] come to an agreement,” Belinoski said. Unsustainable increase The year-over-year percent change in average market values in Mont- gomery County has been in the single digits for the last six years. As such, Belinoski said he was shocked by 2022 appraisal values. Locally, the average market value for properties within Conroe ISD boundaries rose 27.4% from 2021-22— following a 9.2% increase overall from 2017-21—and 34.3% within Mont- gomery ISD boundaries, following a total increase of 12.89% from 2017-21, according to the MCAD. Property values are increasing faster than the median income across Montgomery County, leaving people struggling to pay bills, said state Rep. Steve Toth, R Woodlands. Montgomery County’s median income increased 26.9% from 2010-20, according to the American Community Survey ve-year estimates, while county data shows the average market value increased 52.83% during that time, spik- ing another 33.84% from 2020-22. As such, homeowners said they are worried about how high their taxes will be this fall.
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value. The market value is what the home is worth, whereas the appraised value is the taxable value before prop- erty tax exemptions. In years prior, the market and appraised values have been similar, Belinoski said. However, most home- owners may notice a discrepancy this year between values due to the state’s 10% cap on appraised value increases while home values surge. Tohelp, the city of Conroe approved a 20% homestead exemption in April, and local legislators pitched solutions to provide further taxpayer relief. “We cannot control what the appraisal district does. ... But what we can control are two things. One is we can put a homestead exemption. ... The second one will happen more toward a budget, ... trying to push [the] tax [rate] down,” Conroe City Council Member Raymond McDonald
said in an interview. Appraised values rise
The increase in appraised values is a result of several factors. Belinoski said there is a large demand for homes in Texas but a low inventory of homes to purchase.
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