South County property values continue to grow at a robust rate, joining another strong year of growth across Santa Clara County.
The 2022-2023 assessment roll, released July 1, showed a record $619.9 billion, a 7.46% bump over the prior year, which is the fourth highest percentage increase in the last 10 years, according to the Santa Clara County Assessor’s Office.
The roll reflects the total net assessed value of all real and business property in Santa Clara County as of Jan. 1, 2022.
Morgan Hill’s property values grew at a rate of 7.60% to $12,352,976,424, while Gilroy rose 6.55% to $10,936,922,206, data from the Assessor’s Office shows. Both cities exceeded their growth rate from the previous year.
The growth in assessed property values is attributed to multiple factors. The leading contributors are changes in ownership and new construction, which accounted for $24.5 billion and $5.9 billion of the total increase, respectively.
“The Covid-19 crisis required a course correction,” County Assessor Larry Stone said. “Last year, we feared the recession would extend for a longer period of time, and I projected a pessimistic view for recovery. The resilience of Silicon Valley coupled with an extraordinarily strong residential market have reinforced the local economy, accelerating growth in the assessment roll to a record level.”
The pace of new construction is gaining momentum following the uncertainty of the economic and business outlook during Covid-19.
Platform 16, the 1.1-million-square-foot office project in San Jose, resumed construction after it was shut down during the pandemic. The Nvidia Campus in Santa Clara, meanwhile, accounted for $310 million of the county’s $5.9 billion in new construction.
Tech companies continue to generate significant investment in the region, including $3.5 billion of office and commercial building acquisitions last year.
The assessment of business property, such as machinery, equipment, computers and fixtures, increased by 6.6% to $42.9 billion, the second largest in California, according to the Assessor’s Office.
“This year started with a strengthening economy due to broad vaccine distribution, trillions of dollars of federal and state stimulus, pent-up demand in both the residential and corporate sectors, and low interest rates,” Stone said. “However, the 2022-2023 assessment roll is a snapshot of property values as of January 1, 2022. Recently, mortgage interest rates have doubled and inflation has reduced consumer buying power, indicating that next year we may see a flattening of growth.”
On June 30, the Assessor’s Office mailed annual assessment notices to 496,445 property owners, reporting each property’s 2022 assessed value.
Property owners who disagree with the assessed value printed on the notice are encouraged to take advantage of the Assessor’s online tool, enabling property owners to review the sale of comparable properties used to determine their assessment.
To access the data, a property owner must have a username and password created last year, or the PIN listed on the annual assessment notice.
To login, visit www.sccassessor.org/index.php/email-opt-in/manage-your-account.
The annual notice also describes the process for filing a formal assessment appeal by the Sept. 15 deadline. For information, call the Clerk of the Board at 408.299.5088, or visit www.sccgov.org/assessmentappeals.