El Paso Residential Real Estate Grows by 3.9%

El Paso County continued its pattern of increases across the board in 2026, with homes adding 3.9% to their value, resulting in an overall value of $58.58 billion. This was up from $56.37 billion in 2025. The two largest sources of value were homes worth under $250,000 and those worth between $250,000 and $500,000, which equaled $26.56 billion and $25.73 billion, respectively. These grew by 1.9% and 4.8%, building their lead. Jumping 7.5%, homes worth between $500,000 and $750,000 totaled $4.05 billion. Though they were the smallest categories, the two most expensive home types grew the fastest. Those worth between $1 million and $1.5 million soared 14.3%, while those over $1.5 million jumped 24.7%.

As a county mostly made up of first-generation Americans and working families, it should be no surprise that most residential value in El Paso comes from modest houses. The largest source of value came from homes under 2,000 square feet, which totaled $34.63 billion after increasing by 3.3%. This was followed by $21.42 billion for residences between 2,000 and 3,999 square feet, which also grew by 4.3%. The fastest growing category was homes measuring 4,000 square feet to 5,999 feet, which added 24.9% in value. Adding 8%, the No. 3 category was those measured between 6,000 and 7,999 square feet with a total of $1.96 billion. True mansions grew 13.1%, reaching $390.23 million

When value is categorized by age of construction, El Paso County tends to lean older. Like most of Texas, the biggest chunk of housing value was built from 2001 to 2020, with $20.99 billion, or 36%, being built in this timeframe. Adding 2.7%, those built from 1981 to 2000 were in second place with $13.69 billion. Those built from 1961 to 1980 accounted for $10.24 billion, while those built before 1960 were responsible for $8.68 billion. New construction added the most value with 21.6%, reaching $5.37 billion. Raw land added 7.9%.

50% of all El Paso Homes Overvalued

Recent studies discovered that roughly 50% of El Paso homes were overvalued in 2026. This means that EPCAD appraised homes higher than their true market value. One of the major grounds for property tax protests is to challenge appraised values compared to what homes can get on the open market. As real estate is also required to be equally appraised by state law, this also opens up grounds for appeals. To be compared for either of these strategies, the properties must share characteristics, such as location, age, and size.

Realtors Reinforce Overvalued Claims

A study done by local realtors seemed to confirm the suspicions of overassessment. While EPCAD appraised residential real estate as growing around 3.9%, the realtors countered that the market only grew by 1.9%. This means that EPCAD doubled its assessments compared to actual market growth. This is common in Texas, as appraisal districts are behind the curve and are usually using sales from the previous few years, often missing current market trends.

Market Value of Business Increases 17.5%

While homes increased beyond inflation, commercial real estate climbed far beyond that. In 2026, the overall value grew by 17.5%, reaching $11.91 billion. Like homes, most of this was from older properties. Totaling $3.97 billion after increasing by 15.3%, businesses from the construction boom of 2001 to 2020 accounted for 33% of the total. This was followed by $2.70 billion from those built between 1981 and 2000, which added 23%. Those from 1961 to 1980 were in third place with $2.09 billion after growing 17.8%. New construction added 36.6% in market value, soaring to $1.06 billion, or 9% of the total.

The fastest-growing and largest category was apartments, which totaled $3.68 billion after adding 33.3%. This is typical in urban counties in Texas. Raw land was in second place with $3.16 billion, growing by 3.9%. Retail saw an enormous surge of 31.4% in 2026, totaling $2.20 billion. Offices added 4.9% despite market factors, reaching $1.41 billion. Warehouses, always a strong economic indicator, added 11.2%, for a total of $1.41 billion.

As is typical for Texas, it was the largest businesses that steered the growth of value across the county. Surging 24.5%, businesses worth over $5 million accounted for $6.17 billion of the total. Those worth between $1 million and $5 million added 15.5% to reach $3.38 billion in market value. Small businesses achieved a final tally of $1.34 billion after an increase of 2.2%, while those worth $500,000 to $1 million added 7.2% to total $1.03 billion.

National Commercial Property Lost 21% of Value in 2026

While Texas and El Paso County are both economic dynamos, much of the nation is seeing a downturn. According to the Wall Street firm Green Street, the value of commercial properties across the nation fell by 21% in 2026, mostly thanks to empty offices. In contrast, El Paso added 17.3% in value to business real estate. While this is not a clear-cut overassessment like houses, it does raise some questions about EPCAD’s appraisals that should be explored using property tax protests.

Apartment Market Value Increases by a Third

Already the most expensive commercial real estate in El Paso County, apartments saw their value increase by a third in 2026. Like most other properties, the largest portion of value was built between 2001 and 2020, which added 29.3% in 2026 to total $1.27 billion. The No. 2 slot for apartments was those built between 1961 and 1980, which accounted for $909.21 million after an increase of 23.5%. Adding 46.3%, those from 1981 to 2000 reached $774.09 million to be in third place. New construction soared 76.2% to $338.21 million.

Offices Jump 4.9%

Of all the major categories, offices saw the smallest growth. At 4.9%, offices increased to a total of $1.41 billion. This slower growth was due to reductions in a few categories, including a loss of 2.9% for those built from 2001 to 2020, the largest source of value. New construction fell an astounding 16.7% to $76.64 million. Offices built between 1981 and 2000 were in second place with $400.37 million, which added 9.5%. The oldest offices in the county increased by 16.1% to $194.46 million, while those from 1961 to 1980 jumped 13.1% to $281.89 million.

EPCAD divided offices into only two categories. The first was office buildings, which increased 12.8% to $1.01 billion. Medical offices, on the other hand, dropped 11% to $397.38 million.

Retail Adds 31% in Value

Retail saw a huge return in 2026, adding a staggering 31.4% to its value, which was only behind apartments. This translated into a new total of $2.20 billion, a large improvement over 2025’s $1.68 billion. Retail stores built from 2001 to 2020 were the largest category and added 35.5% to total $859.28 million. Those built from 1981 to 2000 added 32% to reach $498.92 million, while those from 1961 to 1980 jumped 21.1% to $378.94 million. New construction soared by 43.9%, totaling $150.61 million.

As is to be expected in Texas, the largest retail category was strip malls with $1.41 billion, following a large increase of 34.3%. This was followed by shopping centers, which took second place thanks to a huge swing of 53.7%, reaching $332.23 million. Retail stores lost their spot to shopping centers, but still added 11.8% to total $273.58 million. Regional shopping centers rounded things out with a jump of 12.5%, totaling $186.22 million.

Warehouses Jump 11.2%

Warehouses have been some of the most consistent forms of commercial real estate across Texas. Those in El Paso added 11.2%, landing a final tally of $1.41 billion. Warehouses used a slightly different pattern when it came to ages of construction. $599.59 million came from those built between 1981 and 2000, which was first place. Those built from 2001 to 2020 came in second after improving 5.9%, with a total of $373.59 million. New construction was the standout, adding 20.2% to achieve third place at $327.61 million. The remaining timeframes only accounted for 8% of the value.

EPCAD divided warehouses into four categories. The largest, oddly enough, were mega-warehouses, which totaled $733.79 million after surging 22.5%. Mini-warehouses took second place with $280.62 million, increasing by 5.6%. Office warehouses retreated 0.6%, while standard warehouses lost 4.1%. These still managed to land final tallies of $276.04 million and $123.24 million, respectively.

O’Connor Can Help with Property Tax Protests

El Paso saw significant increases in market value in 2026. The only way to reliably lower these values is to use property tax protests. Also known as appeals, protests challenge the values put forward by EPCAD, ensuring that they are correct. With 50% of homes being overvalued and commercial real estate seeing record increases, it pays to make sure that every number is correct.

O’Connor is here to assist you, no matter if you are a homeowner or own a business. For over 50 years, we have been helping Texans fight appraisal districts with protests, exemptions, and more. Based in Houston and with branch offices across the state, including El Paso, we know how best to take on EPCAD and every other appraisal district in the state. This allows us to use local expertise while backing it up with national resources.

When you join O’Connor, you will get a client success consultant who will act as your advocate, guide, and point of contact. Rather than depending on a chatbot or a rotating roster of customer service agents, you will always have one accountable person. We pride ourselves on having a personal touch. There is no cost to join, and you will only pay if we can lower your taxes.