The proposed noticed values for property tax assessments in 2025 have been published by the Montgomery Central Appraisal District (CAD). During the 2025 property tax reassessment in MCAD, approximately 30% of homes were overvalued, while 70% were valued at or below their actual worth. The assessed value of a typical home increased by 9.0%, whereas commercial properties experienced a larger rise of about 13.4%. These changes reflect adjustments to both existing structures and new developments.
Tax Reassessments Reveal 9% Surge in Montgomery County Home Values
Compared to 2024, in 2025 the average increase in tax assessments for homes rose by 9.0%, slightly lower than last year’s 10%. The graphs show a clear trend that illustrates the more expensive a home, the higher the tax increase. During the most recent property tax assessments, the market value of homes valued at over $1.5 million increased by 19.3%, reaching $8.159 billion. Homes valued between $1 million and $1.5 million also saw a notable gain of 13.5%, growing from $7.865 billion to $8.926 billion. Although the average total for 2025 is slightly lower than 2024, homeowners are still experiencing significant increases in tax assessments.
In 2025, the market value of properties in Montgomery County that are over 8,000 square feet in size increased by 20.1%, rising from $1.2 billion to $1.4 billion. Following close behind are homes with 6,000 to 7,999 square feet with 16.8% increase. The lowest assessment increase was seen in homes with less than 2,000 square feet resulting in 7.2%.
For houses categorized by year built, there is no clear trend as both older and newer homes experienced high increases. For instance, homes built after 2021 increased by 30.5% with a notice market value of $14 billion in 2025. Homes built before 1960 also saw a high increase of 9.4%, growing from $517 million to $565 million.
In 2024, Montgomery CAD overvalued 55% of the homes in the County, but in 2025 only 30% of homes were overvalued. As determined by the analysis that compared the 2024 sales price of homes with the 2025 property tax reassessment values, 70% of homes were valued at or below market price, as opposed to 45% in 2024.
Navigating the 2025 Commercial Property Tax Reassessment in Montgomery County
The property assessments for 2025 revealed clear patterns between house prices and assessment increase. Categories that stand out with the most notable gains are homes valued between $1 million and $5 million, and homes valued over $5 million. Homes valued between $1 million and $5 million increased by 13.1% and homes valued over $5 million grew by 15.8%. In contrast, homes worth less than $500K had the lowest rise of 1.9%, lower than the 4.3% in 2024.
All classifications of commercial buildings saw increases in their property taxes for 2025. Four out of six commercial property types saw increases at 10% or more. Apartments increased by 16.5%, warehouses by 14%, and offices by 10.8%. Hotel commercial property saw the highest increase of 76.9%, growing from $564 million to $ 998 million. In 2025, there was a substantial 13.4% increase in the value of all commercial property categories.
Regardless of the year of construction, Montgomery CAD observed in 2025 that assessments of commercial property in the county rose considerably. Properties constructed in 2021 and later saw the greatest increase of 48.3% with a notice market value of $2.252 billion. Other notable increases include properties built between 1961 to 1980 with 15.9%.
The Property Value Gap: How MCAD Assessments Diverge from Market Reality
Montgomery CAD’s 2025 commercial property tax reassessment sharply contrasts with findings from Green Street Real Estate’s analysis of market trends. While the district reports a 13.4% increase in commercial property values over the past year, Green Street’s latest data indicates a steep 21% decline in U.S. commercial property values since March 2022.
Montgomery County’s 2025 Revaluation: Apartment Properties Up by 16%
Montgomery County’s property tax assessments for apartment complexes grew by over 16% in 2025, lower than 30% in 2024. Apartment buildings built after 2021 grew the most by 52.5%, reaching $1.292 billion in notice market value for 2025. Apartments built before 1960 also saw notable increases of 25.9%. On the other hand, buildings constructed between 2001 to 2020 saw a small increase of 9.4% but rose 60% in value in the market.
Property tax assessments for three types of apartment complexes in Montgomery County collectively rose by 16.5% in 2025. Regular apartment complexes led the increase with a 22% rise, jumping from $1.4 billion to $1.7 billion. Meanwhile, apartment gardens saw a 14.9% increase and subsidized apartments by 9.2%. The market value from 2024 to 2025 grew from $5.727 billion to $ 6.671 billion.
Office Spaces in MCAD Experience Notable 10.8% Valuation Increase
In 2025, office buildings across all construction years saw substantial increases compared to the 2024 reassessment. Total office building values rose by 10.8%, climbing from $3.467 billion in 2024 to $3.841 billion in 2025. The highest growth was seen in office buildings built in 2021 and above with 54.4%. Office buildings built between 2001 to 2020 saw the lowest increase of 7.7%.
In 2025, Montgomery County recognized two office sub-types, and each type were close in assessment increases. Medical offices rose by 8.3% and regular office buildings grew by 12%.
Retail Property Owners Face Nearly 10% Tax Assessment Jump in MCAD
Montgomery County’s retail property prices climbed by an average of 20% in 2024 but resulted in 9.8% in 2025. Retail properties established between 1981 and 2000 saw the lowest tax assessment increase of 7.1% with a notice market value of $925 million. Retail buildings built after 2021 increased by an astounding 32%, from $164 million to $217 million.
Retail tax assessments increased for five sub-types. Single tenant retail spaces increased by 14.5%, reaching $408 million in 2025 market value. Neighborhood shopping centers saw a slight increase of 3.9%. Strip centers also saw a notable increase of 11.9%, growing from $845 million to $945 million.
MCAD Warehouse Tax Assessments Increased by 14%
In MCAD, property tax assessments for warehouse buildings increased by approximately 14% from 2024 to 2025. Notably, warehouses built after 2021 saw a sharp rise in assessed value — from $363 million to $547 million — an increase of nearly 50.6%. In contrast, assessments declined for older properties: warehouses built before 1960 dropped by 3.7%, and those with unspecified construction years fell by 5.1%.
In 2025, MCAD reported tax assessment increases for two warehouse sub-types: mini and regular. Mini warehouses grew significantly by 26.6% with a notice market value of $1.077 billion. Regular warehouses grew by 7.8%, from $1.721 billion to $1.855 billion.
Over the past year, home prices in the Houston Metro area rose slightly by 1.2%, while the Montgomery County Appraisal District (MCAD) raised property assessments by a significantly higher 9%.
Takeaways from MCAD 2025 Property Tax Revaluation
While residential properties in Montgomery County are seeing more moderate increases, commercial property owners are facing steeper hikes. Residential assessments have risen by 9.0%, compared to a 13.4% increase for commercial properties. Encouragingly, a smaller portion of residential accounts were overvalued compared to 2024, with 70% of homes assessed below market value in 2025 — welcome news for homeowners who’ve dealt with inflated assessments in recent years.
Texas property owners, especially in Montgomery County, have the legal right to protest their property valuations. Both residential and commercial owners can present evidence to support claims that their assessments are too high during the appeal process. With over 50 years of experience, O’Connor has the expertise and resources to help clients secure fair and accurate tax reductions.