FAYETTEVILLE, Ark. (KNWA/KFTA) — If you live in Washington County, your property values are now 54% higher after the 2023 reappraisal.
The recent spike in property values may add to homeowners equity, but according to the Washington County Assessor, Russell Hill, it comes with some record-high property taxes and increased rent prices. He said the last reappraisal year was 2020.
Hill said property values are spiking because of many people with remote jobs moving in from states with higher costs of living. He also blamed AirBnb and VRBO.
“You have investors that are buying up tons of properties as investment properties, though, that’s taking that off of the market,” said Hill. “So that creates a higher demand for people just trying to buy a house to live in.”
Property values rising in Washington County
Hill said homeowners’ property taxes will keep raising by 5% each year until they reach the full 2023 appraisal value, which again has gone up by about 50%. For landlords who own rental property, he said their taxes are going up by 10% each year.
The only people who are exempt from the raise in property taxes are those 65 and older or 100% disabled, according to Hill.
Over the last two years, Sarah Little lived in an apartment alone and watched her rent jump up by 300 dollars before moving into her boyfriend’s rental house in Fayetteville, where they could split rent instead. She said her dream has always been to one day save up to buy a house where she can start a family, but feels this is no longer attainable with the increase in prices.
“I’m coming to terms I might just be a renter for the rest of my life,” said Little.
Hill said it’s common for landlords to pass the increase in property taxes along to their tenants, making it more difficult for people to save up for a home.
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Though for people who already own homes in Washington County, he said the increase in property values is adding to their personal wealth.
“That’s part of the reason people buy real estate,” said Hill. “It’s a really safe bet for investing your money.”
Hill said the next reappraisal year is in 2027. He expects property values to rise again, but at a lower rate.
https://www.nwahomepage.com/news/heres-why-your-rent-or-property-taxes-mightve-gone-up/
