Tuesday, August 5, 2025

Despite Wildfires LA County Property Values More Than $2 Trillion

CITY NEWS SERVICE

Property value in Los Angeles County increased by $82 billion, or 3.91%, compared to last year’s estimate, marking 15 years of continuous growth despite the devastating wildfires that destroyed thousands of homes in January, the county Assessor’s Office announced Monday.

The growth translated to approximately $2.176 trillion in total net value, which is expected to provide $20 billion in property tax dollars toward public services such as education, first responders and healthcare workers, as well as other county services.

“As I said when I presented the forecast to the Board of Supervisors in May, this has been a very challenging year, highlighted by the devastation of the January wildfires that laid to waste large sections of Altadena and the Pacific Palisades,” County Assessor Jeffrey Prang said in a statement.

“The wildfires impacted more than 23,000 property parcels, including the total loss of over 10,000 homes, which significantly decreased property tax revenue. However, we are committed to ensuring property owners receive the assessment relief they are entitled in a timely manner,” he added.

Prang released the findings of the 2025 Assessment Roll Monday, an inventory list of taxable property such as land, buildings, and business property including furniture, machinery and equipment, which is based on property values as of January 1, 2025. The Assessment Roll consists of 2,398,007 taxable real property parcels, 160,367 business property assessments, 32,733 boats and 3,037 aircraft.

According to Prang’s office, the Assessment Roll is a tool that provides insight into the state of the real estate market, as well as the local economy. It’s also used to help local governments prepare for their annual budgets in anticipation of property tax revenues.

The assessor is responsible for recording the assessed value of all taxable property in Los Angeles County each year as required by the state Constitution.

Prang’s office noted that while the housing market has shown signs of slowing, median home sales prices remained robust, reaching a high of $950,000. Property transfers served as the single most significant factor that led to this year’s roll growth, adding $51 billion in additional value.

Additionally, inflation adjustment mandated under Proposition 13 also contributed to the growth. In 2025, the California Consumer Price trended well beyond the Proposition 13 cap, according to Prang’s office, meaning the maximum 2% inflation factor was applied and resulted in a $41 billion increase to the roll.

Prang’s office noted that new construction contributed an estimated $8 billion, as well.

The growth does not mean property owners will be subject to a corresponding increase on their annual property tax bills. Most property owners will see only a 2% adjustment prescribed by Proposition 13, according to Prang’s office.

The 2025 Assessment Roll can be viewed at https://assessor.lacounty.gov/news-information/annualroll.