In a recent update from Juneau’s city officials, property assessments for both residential and commercial sectors have shown minimal changes this year, signaling a stabilizing real estate market. According to preliminary data, residential properties in Juneau experienced an average increase in value of approximately 1.66%, while commercial properties saw a slightly lower average rise of 1.24%. Additionally, the valuation of vacant land across the city reported a growth of less than 1%.
Angie Flick, the City Finance Director, interprets these modest increases as indicative of a cooling housing market, despite Juneau’s ongoing housing crisis. This year’s subdued growth contrasts sharply with last year’s figures, where residential property values surged by an average of 16%, with some reports of increases surpassing 40%. Commercial properties last year experienced an average valuation increase of around 6%.
The process of property assessment in Juneau has encountered challenges, particularly with the acquisition of retail sales data, which is essential for accurate evaluations. Alaska’s stance on not mandating the disclosure of real estate sale prices complicates data gathering for city assessors. Although the Juneau Assembly attempted to require disclosure in 2020, the mandate was overturned by local voters in 2022, adding to the assessors’ difficulties in accessing complete data sets for their evaluations.
Despite these hurdles, the city’s assessors strive to maintain accuracy in their assessments, utilizing available data and adhering to industry standards. Property assessment notices have been distributed to residents, but property tax bills are scheduled for release in June, pending the Assembly’s decision on this year’s mill rate.