Average value of Richmond homes hits new record

Jeremy M. Lazarus | 9/14/2023, 6 p.m.
Homeowners in Richmond can expect to pay bigger real estate tax bills in 2024 as the value of their property …

Homeowners in Richmond can expect to pay bigger real estate tax bills in 2024 as the value of their property continues to rise, though at a more modest pace than the blistering double digit growth rates of the past two years.

Richie McKeithen, the city’s assessor of real estate, just completed the reassessment of property and reported that property values grew 7.7%, down from the 13% rates of the past two years.

The overall rate includes homes, apartments, condos and billboard signs.

He said the interest rate increases have help “calm the market,” though residential property values in some areas of the city

are still growing substantially faster. Despite the calmer waters, Mr. McKeithen noted the average value of a Richmond home hit a new record, $377,787, up $23,170 from the 2022-23 average of $354,617, a 6.6 % increase.

The assessed values are generally based on sales in the particular area.

At the current tax rate of $1.20 per $100 of assessed value, that increase would boost the tax bill by $278.

The 2023 average tax bill was $4,255; the increase in value will move that tax bill to $4,533.

Mr. McKeithen splits the city into 112 neighborhoods and of those about 35 had double-digit increases.

Richmond residents are finding out how much their home’s value increased through assessment notices that were mailed last week. Those are not bills. Those will be issued twice in 2024, once in January and once around June.

Hefty increases in value occurred in the multifamily and condo markets.

The hottest residential market was in Downtown, which led the city with a 23% increase in value, according to the Mr. McKeithen’s new report.

The 47 properties that were assessed jumped a whopping $101,000 in value, increasing from $348,106 to $449,787 from 2022-23 to the current assessment year.

Areas rated as more affordable also are seeing sharp increases.

For example, the Oak Grove neighborhood that includes 989 residential properties, home values jumped nearly 20% from, $147,000 last year to $176,000 this year, a nearly $30,000 increase based on sales.

The nearby Bellemeade North neighborhood saw an 18% rise in home values, with the average property rising to $164,000 this year, a $25,000 increase from last year’s $138,600, according to the report.

Residential areas near Creighton Court and Fairfield Court also experienced double-digit increases in home values of around 12%.

Mr. McKeithen’s report disclosed that the overall value of taxable real estate is $38.7 billion, up almost $3 billion from last year. If all the real estate tax were to be collected, that would increase city revenues by about $28 million over the real estate taxes collected this year.

That $38 billion figure does not include the value of new construction that is going on in the city, which Mr. McKeithen and his staff are now assessing.