DCAD Overshoots Home Values 8.8%
Dallas County property tax assessments value houses at 8.8% above market value for the median property. The median Dallas home has an extra tax assessment of $23,180). The 2023 median home value from Dallas Central Appraisal District is $328,180 versus a median sales price time adjusted for January 2023 of $305,000. ($328,180 – $305,000 = $23,180) The extra property taxes for the median home owner would be $626 before considering tax protests, exemptions, and tax rate compression.
Fully 73% of Dallas homes are assessed in excess of market value versus 27% assessed at or below market value. The ratio of Dallas homeowners over-assessed and the median time adjusted sales price are based on a study of 26,629 home sales in Dallas County during January 2022 to March 2023.
Dallas Central Appraisal District increased home prices by 13.2% versus a drop in median home prices in Dallas of 3.2%. The gap between the increase and the decline in value is 16.4%. The total DCAD value for homes in Dallas County increased from $214.6 to $242.9 billion, an increase of $28.3 billion. At 2.7%, property taxes would be $0.764 billion before appeals, etc.
In the graph above, Dallas metro home prices are compiled from the MetroTex Association of Realtors®, encompassing multiple counties, and giving a slight deviation from Dallas County home sales values, but still showing a significant gap in comparison with the Dallas County appraised values.
The Dallas County median level of assessment of 108.8% for homes is similar to the statewide average of 106.9% This is the first year since Texas became a state that home values are consistently overstated by Texas appraisal districts. For 18 large counties, 15 counties value homes in excess of market value, often by 10 to 18% above market value. Three counties valued homes slightly below market value on average. These include Guadalupe (99.6%), Lubbock (97.7 %) and Williamson ( 96.7%).
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Dallas County homeowners with property over $1.5M see the sharpest spike with a 23.1% increase in assessed value.
Homes in Dallas County built since 2001 have an assessment increase of 19.3%, the highest among construction date ranges.
Commercial Property – Assessments Soar while Values Plummet
Dallas Central Appraisal District increased commercial tax assessments by 27.8%. Increases were highest for hotels (53.6%) and apartments (35.4%). Office buildings are going through a long-term repricing, in part because debt available for office is scarce and underwriting meticulously. However, office tax assessment increased 19.2%.
All Sources Report Distress in Commercial
Commercial real estate brokers report activity is down 70 to 80% and mostly distressed
properties. Owners not forced to sell are waiting to see if prices rise as interest rates and cap rates fall. It is uncertain whether and when interest rates will decline.
Dallas County Commercial Property 2023 Assessment % Increase by Property Type
| Property Type | 2022 Final Market Value | 2023 Notice Market Value | Increase% |
| Apartment | $52,200,867,210 | $70,688,384,130 | 35.4% |
| Office | $29,459,200,200 | $35,121,164,290 | 19.2% |
| Retail | $11,273,356,850 | $12,858,807,950 | 14.1% |
| Warehouse | $5,943,431,900 | $6,655,096,890 | 12.0% |
| Hotel | $4,011,583,520 | $6,162,360,390 | 53.6% |
| Total | $102,888,439,680 | $131,485,813,650 | 27.8% |
Appraisal Districts are increasing commercial values across Texas:
Appraisal districts are increasing commercial values by 29% during a time period when commercial values fell by 20 to 30%. Apartments (37%), warehouse (35%) and hotel have the largest level of increase. ElPaso is the only appraisal district so far (including only those below for which we have and have processed data) to increase commercial property tax assessments by less than ~20%.
Commercial Property 2023 Assessment % Increase by Property Type by County
| Property Type | ||||||
| County | Apartment | Office | Retail | Warehouse | Hotel | Total |
| Brazoria | 69% | 44% | 75% | 84% | 43% | 66% |
| Bexar | 23% | 14% | 26% | 23% | 17% | 22% |
| Collin | 46% | 15% | 25% | 28% | 50% | 32% |
| Dallas | 35% | 19% | 14% | 12% | 54% | 27% |
| Denton | 63% | 29% | 33% | 103% | 64% | 60% |
| El Paso | -7% | 14% | -3% | 11% | -5% | 4% |
| Fort Bend | 47% | 33% | 36% | 24% | 19% | 31% |
| Galveston | 34 | 5% | 38% | 1% | 21% | |
| Hidalgo | 58% | 10% | 18% | 31% | 71% | 25% |
| Lubbock | 29% | 14% | 29% | 40% | 26% | 23% |
| Nueces | 20% | 15% | 14% | 19% | 27% | 19% |
| Williamson | 37% | 15% | 22% | 49% | 25% | 27% |
| Harris | 25% | 13% | 16% | 24% | 18% | 20% |
| Average | 37% | 18% | 26% | 35% | 34% | 29% |
2023 assessments for Dallas County commercial property are up over 32% for properties constructed since 2001.
The steepest increase in assessments for commercial property in Dallas County are properties valued over $5M, with an increase of almost 30% for 2023.
Highest increases in assessed value for apartments in Dallas County are those properties constructed since 2001 at 38.2% and those constructed between 1961 and 1980, at 37.3%.
Office properties in Dallas County built in 2001 and later are feeling the most sting with assessed value increases over 26%.
Dallas county owners of retail property are not immune from rising assessments. Depending on year built, they range from 11.2 to 16.3% up for 2023.
Commercial warehouse properties with the highest increase in assessed value for 2023 are those constructed prior to 1960.
When comparing medical and office commercial property in Dallas County, the sharpest swing in assessed value is for offices with a 20% increase for 2023.
Brink exterior apartments in Dallas County rose over 35% for 2023, but frame exterior apartments surged upward with 42.1% increases for 2023.
Retail Dallas County commercial property assessments reached equal elevation for strip center and single tenant property owners with increases of 15.2%.
Warehouse property owners are looking at value assessments up as high as 13.8% for 2023.
Dallas County property owners are facing massive increases in assessed value. Don’t accept the new appraisal value, it is your right to appeal. Don’t pay more than your fair share. Record levels of property tax protest are expected to follow. The deadline to file a property tax protest is May 15th.
About O’Connor:
O’Connor is among the largest property tax consulting firms in the United States, providing residential property tax reduction services in Texas, Illinois, and Georgia, as well as commercial property tax reduction services across the United States. O’Connor’s team of professionals possess the resources and market expertise in the areas of property tax, cost segregation, commercial and residential real estate appraisals. The firm was founded in 1974 and employs more than 600 professionals worldwide. O’Connor’s core focus is enriching the lives of property owners through cost effective tax reduction.
Property owners interested in assistance appealing their assessment can enroll in O’Connor’s Property Tax Protection Program ™ . There is no upfront fee, or any fee unless we reduce your property taxes, and easy online enrollment only takes 2 to 3 minutes.
