Driven by a red-hot real estate market and rising sales prices of single-family homes, residential property values in Harris County are expected to rise by around 15%-30% when notices are sent out this spring, according to a March 17 news release from the Harris County Appraisal District.

For more than 95% of residential properties, the average increase will be higher than 20%, the county's Chief Appraiser Roland Altinger said. Homes in all price ranges saw value increases of 21% overall this year, including new construction.

“Value increases this year have been unprecedented," Altinger said in a statement. "In my almost 40 years in the real estate business, I have never, ever seen such large increases in market values.”

HCAD reported the increases as the district prepares its annual mailing of value notices to property owners. Every year, the district sets out to determine the market value of every property in the county as of Jan. 1 using a process set by the Texas State Constitution. In 2021, residential properties in Harris County rose by around 8%-10%, according to HCAD.

Market value—the amount a property is expected to sell for—is largely informed by home sale prices as well as on-site inspections. The median sales price of single-family homes in Harris County was $300,000 in 2021, a 15.4% increase over 2020, when the median price was $260,000, according to the Houston Association of Realtors.

Meanwhile, population growth, low interest rates, supply chain issues and the rise in the number of people who work remotely have all increased demand for homes, leading to a more limited supply, according to HCAD.

After a home's market value is determined, exemptions are factored in as a way to lower property taxes. Properties with homestead exemptions are limited to a 10% increase, Altinger said.

In a statement, Altinger encouraged property owners to check online at HCAD's website to see what exemptions they are entitled to. More information can be found here.

Instead of determining the value of each property at the individual level, HCAD uses a process called mass appraisal to look at comparable properties in an area to determine a base level of market value. If property owners feel their properties have been assessed incorrectly, they can also protest them to have them lowered. Some experts encourage all property owners to protest their values as a general rule.

Commercial property values are also on the rise, increasing 18% overall, according to HCAD. Apartment buildings saw the highest increase among commercial property types, with value increases averaging 24% across the sector.

Property owners who receive their notices may begin the protest process immediately. More information can be found at www.hcad.org/ifile.