Jolly workmen stage cribbing for a foundation in the south-end community the Hamptons. Rising home prices and new construction in 2021 saw the city's tax assessment base rise by about 0.5 per cent to $9.25 billion.--NEWS FILE PHOTO
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Projected growth in the city’s tax assessment base met expectations in 2021, with strong residential real estate prices making up for flat changes in commercial property and a struggling hospitality sector.
Residential unit sales prices saw increases between 3 and 5 per cent in 2021, with three neighbourhoods seeing up to 7.1 per cent, while two actually saw closing prices drop.
Overall, the value of property in the city for taxation purposes rose 0.47 per cent, according to the city’s assessment department, taking the overall assessment to $9.255 billion considering all homes, businesses and farmland.
That is just under the 0.5 per cent increase predicted when the property tax plan was laid out in late December.
That difference, from $9.08 billion in 2020, is based on changing real estate values and new construction, but was driven by higher valued single-family homes compared to struggling commercial and industrial sectors.
“We saw very little physical growth in the non-residential class in 2021 – there were very few building permits – and market (value) loss was experienced with hospitality hardest hit,” chief assessor Sue Sterkenburg said at the March 21 meeting of city council.
“Single-family dwellings really had the largest increase in both market and physical (changes).”
New home builds and home improvements, along with rising home prices in the resale market, added $248 million in value among about 26,000 single-family homes in the city.
Communities experiencing the greatest price increase were northeast Terrace (7.1 per cent), Canyon Creek (7.0), a small area of Saamis Heights (6.3) and northern portions of the Southeast Hill (6.1). Losing value were eastern Riverside (negative 1.8 per cent) and the eastern sections of River Flats (negative 0.3).
Most neighbourhoods on a map provided to council show price growth between 2 and 5 per cent.
For assessment value, multi-family (apartment and condo complex) buildings also saw a $25.6-million cumulative increase among 170 accounts.
There was an overall $36.2-million loss in value for commercial property assessments, which include adjustments for vacancy and capitalization.
Median properties in commercial and industrial classes “saw very little change.”
“We’re seeing very little change in lease rates and a slight increase in vacancy,” said Sterkenburg.
That’s focused on struggles in the hotel and hospitality sector, which saw less activity due to the pandemic, she added.
The city budget requires $80.78 million in tax revenue. The mill rate will be set in April against the assessment value to collect that exact amount once the assessment roll is finalized.
City council agreed to budget amendments in early 2022 that called for a 4.5 per cent increase to tax revenue, comprising 2 per cent for inflation, 2 per cent to lessen reserve spending, and 0.5 per cent related to assessment growth.
Taxes are due June 30.
