The Montgomery County Auditor’s Office also estimates that taxes will increase by roughly 4-6% on average due to the rise in values.
“Over the past few years, we have witnessed the strongest real estate market in history. Home prices have been off the charts here in Montgomery County,” said Montgomery County Auditor Karl Keith. “Now, our property values are catching up.”
The auditor presented a breakdown of property value changes to more than 60 government officials at Sinclair Community College on Thursday, where he explained that every community in the county will see an increase in residential property value “in the double digits.”
Hot local housing market
By Ohio law, property in all counties is reappraised every six years, with property values updated every third year based on recent sales.
The state recommended a residential value increase of 37% for Montgomery County, which the county auditor’s office used as a guideline as it estimated taxable values based on sales from 2022.
The county auditor’s office analyzed these home sales for the county’s 1,100 residential neighborhoods. In total, 89% of residential neighborhoods, representing nearly 96% of homes in the county, will increase in value.
Although the county witnessed a decline in the number of houses selling from 2021 to 2022, 83% of houses last year were selling for a price higher than the home’s current value.
With this revaluation, the average value of a single family home in Montgomery County has jumped from $126,200 to $169,300, according to the auditor’s office.
Southern suburbs dominated growth
Most of the growth in the county has been in the southern suburbs, including areas such as Kettering, Washington Twp., Miami Twp. and Centerville.
Washington Twp. will experience a $1 billion increase in residential value, while Kettering will see gains of $987 million. Dayton will see an $851 million value increase, according to the auditor’s office.
Montgomery County’s southern suburbs accounted for more than half of the county’s growth in property value, according to Keith.
The county’s northern suburbs experienced the next greatest share of total growth with 23%, followed by the county’s urban core with 20% and rural west with 6%.
While southern suburbs increased the most in total value growth, rural areas saw massive increases in average home values. The average single family home in Perry Twp. appraised at $229,200, a 48% increase from the current value of $157,100. The average single family home in Clay Twp. increased 43.6.% from $173,200 to $246,400.
Tax bills impacted by value changes, levies
A 34% average increase countywide does not mean homeowners will see a 34% increase in their property tax bills, Keith said.
For most of the county, a 34% average increase in value will equate to a 4-6% increase in taxes.
Roughly 60% of Montgomery County property tax revenue goes to local school districts, while another 15% goes to human services.
Taxes are collected in mills, which is $1 for every $1,000 of taxable value.
Once values are finalized, the county auditor will determine tax rates. This will include lowering the tax rate for most levies, which are designed to collect a certain amount of money and are adjusted downward based on value increases and new construction.
That doesn’t apply to all property taxes, however, including certain school levies in Miamisburg that can’t legally be lowered anymore and charter millage collected by municipalities such as Dayton.
Because of issues such as this, some areas could see property taxes increase 10-12%.
Keith noted that voters also help set tax rates through levies they approve and reject. A total of 10 levies were on the May ballot countywide, two of which asked for additional revenue.
Another nine levies are expected on the November ballot, four of which will be requesting new money. Aug. 9 is the deadline to place a levy on the ballot.
Statewide values increasing
Montgomery County is not the only county that will have record-setting value increases this year.
Residential property owners in neighboring Greene and Darke Counties will see average increases of 29% and 28%, respectively.
In Franklin County, residential property values will increase 41% on average this year.
Homeowner concerns? Next steps
The auditor’s office will send notices of the tentative new values to most property owners in the first or second week of August.
If a property owner disagrees with that tentative new value, they will have the opportunity to schedule a one-on-one Zoom or telephone meeting with an auditor’s office representative to review their property’s value in detail.