Properties across Portsmouth have surged in value, as expected, in the city’s first revaluation in five years. (Photo by Ioanna Raptis, Seacoastonline)
City assessor Rosann Lentz recently shared just how much residential home values have increased, based on data collected so far in the city’s statistical revaluation.
The full revaluation, which is the first one that’s been conducted in five years, looked at the value of single-family homes, condos, two- and three-family homes and mobile homes or manufactured housing, Lentz told the City Council.
“You can see there have been significant increases in neighborhoods within the residential properties,” Lentz told the council during a workshop meeting Thursday night.
Lentz noted manufactured home values have increased by about 85%. Condominium values have gone up 61.9%, single-family homes 60.7% and two- to three-family homes increased 45.8%, she said.
The result is the updated median single family assessed home value in Portsmouth is $762,600, according to Lentz.
That number increased from $750,000 just a few weeks ago, and $482,000 at the beginning of the year, before the revaluation.
Those values represent what Lentz predicted homeowners would see during a recent interview. She said homeowners should be prepared to see a 50% to 60% increase in their property values and acknowledged “people are going to be shocked.”
The city is working with Vision Government Solutions on the full statistical revaluation of all properties in the city.
Residential and commercial values both rising in Portsmouth
Work on the revaluation is continuing, Lentz told the council, but she also reported on what they’ve seen in terms of increases to commercial properties.
Overall, the value of apartments in the city increased by about 65%, mixed-use buildings rose by 55.8%, retail went up 39.7%, offices rose 37.3%, hotels/motels increased by 21% and industrial by 20%, Lentz said.
“And we’re still looking at properties … hotel and industrial we’re still reviewing those right now,” Lentz said.
A look at property values at Pease
Lentz broke down the commercial property values her team has seen so far by whether they’re located at the Pease International Tradeport or downtown Portsmouth.
For example, the value of industrial properties at the Tradeport increased by 18%, while office buildings went up just 9%, she said.
“The offices out at Pease are having a difficult time right now,” Lentz told the council. “They’ve either stayed level or dropped in value during this revaluation.”
The numbers on Portsmouth downtown properties
“Commercial downtown is very strong as we’ve all seen,” Lentz said.
For example, the value of apartment buildings increased about 65%, mixed use rose 57% and office buildings increased by about 44%, according to Lentz.
“We’re still reviewing the commercial downtown but those are where values are right now,” Lentz said.
Property values up across the board, not just in Portsmouth
She shared too that multiple communities in the Seacoast and region are seeing similar property value hikes.
“Portsmouth is not alone,” Lentz noted.
In terms of next steps, Lentz said her office is “in the process of finishing up commercial valuations and a few other outliers that we’ve been waiting on.”
“We’re hoping within the next two weeks to have valuation notices out to taxpayers by Sept. 16th or 17th, mailed out, and with appointments hopefully starting the following week,” Lentz said.
She noted that residents can request informal or formal hearings if they disagree with their new property values.
“I want to make sure we have enough time on our hearings because this is such a big change in valuation that people have the ability to speak to somebody,” Lentz said.
Portsmouth home owners expected to get larger share of tax burden
The Portsmouth city assessor’s website has a wide variety of information about the revaluation and people will be able to access a property tax calculator – with the new estimated tax rate – once the assessment notices are sent out, she said.
That will allow property owners “to see what’s going to happen with their taxes based on their new value,” she explained.
Although property values overall have risen substantially, a new lower tax rate will be set, she said.
Typically, “some tax bills will go up, some will go down and some will stay about the same,” according to the Assessor’s website.
Lentz previously acknowledged commercial property values have “not increased as fast as residential,” which could cause residential property owners to pay a greater share of the city’s overall tax burden.
That information won’t be released until the revaluation is completed, Lentz said.
Mayor not surprised by home values
Reached Monday, Mayor Deaglan McEachern said he’s been impressed by Lentz’s efforts to provide extensive data to residents about the revaluation.
The amount of information that’s either on the website or will be there gives residents “the ability to research themselves so they can challenge any assessment,” McEachern said.
He stated he was not surprised to see how much property values have risen in Portsmouth since the last revaluation.
“If anybody has been even a casual Zillow shopper over the past five years, they’ve seen a lot of price increases,” McEachern said.
The goal of the revaluation “isn’t to raise everybody’s home value, the goal is to fairly assess the values so we’re all paying our fair share of taxes,” McEachern said.
He again pointed to the City Council’s recent vote to increase the property tax exemptions for elderly and disabled residents.
“We’re going to lead the state in disabled and senior tax exemptions,” he said.
Asked why he believes manufactured home values have jumped so much, McEachern stated part of the reason is they are typically lower in value than other homes in the city.
“They were more affordable to come into, so that’s going to mean they’re going to grow at a higher percentage rate,” McEachern said. “It’s all about the percent of growth.”
During the recent council workshop, City Councilor John Tabor asked, “Is it still a general rule of thumb that property closer to downtown or closer to the water is going to rise in value more?”
Lentz replied, ‘That is what we have been seeing, we always see that, the closer you are either to the waterfront or to the downtown area, the more desirable the location, that’s for residential and condominiums.”
This article is being shared by partners in the Granite State News Collaborative. For more information, visit collaborativenh.org.
