Real estate prices in St. Tammany Parish have skyrocketed over the past four years. And while that may benefit homeowners when they sell, it means higher taxes in the short term.

Every four years, as required by law, Louisiana parishes reassess the value of all property in order to appropriately tax it, and 2024 is one of those years – for St. Tammany and all parishes except Orleans, where this happened last year.

Since St. Tammany Parish Assessor Louis Fitzmorris was elected more than a decade ago, real estate prices on the North Shore have risen steadily. The last assessment four years ago showed an 8% increase, compared to 6% eight years ago.

But this year, the increase is unprecedented during Fitzmorris’ tenure: Tax revenues have increased by 21% overall since the last tax assessment. And the value of private homes in St. Tammany has increased by an average of 25% since the last tax assessment in 2020.

“This is very significant,” said Fitzmorris. “I’ve told anyone who would listen that it’s going up.”

“We are going to see a big price shock,” he added.

Homeowners can now check their 2024 assessment on the assessor’s office website.

Property taxes, or millages, are calculated based on the value of a property: the more a property is worth, the higher the taxes. In St. Tammany Parish, property taxes fund the school system, fire districts, the sheriff’s office, local government (if it is an incorporated municipality), and other public services.

More taxable assets

The price shock is likely to increase in St. Tammany, among other things, because many houses were subject to tax exemptions, which become less effective as property values ​​increase.

Homeowners can apply for a property tax exemption if their home is their primary residence. If they qualify, $75,000 will be deducted from the taxable value, so only the value above $75,000 is taxed.

Historically, much of the property in St. Tammany Parish was completely tax-free under the property tax exemption. However, as property values ​​have increased, an increasing portion of property values ​​must be taxed.

The financial burden on homeowners has also increased. On the North Coast, home insurance premiums have skyrocketed in recent years. Flood insurance premiums have also increased. And the rising cost of consumer goods, driven by high inflation in recent years, has caused households to tighten their belts.

Slidell-area homes have seen the largest increase in value in the community, according to Fitzmorris, who noted that homeowners whose property values ​​increase by more than 50% can request a gradual increase in their taxes over the next four years, rather than all at once, according to the tax office.

Request a review

Fitzmorris also urged residents who believe there may be a problem with their assessment to submit a request for review.

If there is a problem, “most of the time it has to do with the square footage of the property,” he said. “It could have to do with the condition of the home. That’s why we encourage people to submit an inspection.”

However, he stressed that there is not much room for interpretation in the assessment process, which is set by the state government. The local assessor cannot unilaterally lower a person’s assessment.

The official period for people to request an inspection begins August 29 and ends September 13. Homeowners can do so online at the assessor’s website, by calling the assessor’s office, or by visiting the offices in person.

Prices lag behind the US

According to data from Redfin, a real estate company that analyzes housing market data, home prices in St. Tammany Parish are slightly better than in the entire New Orleans metropolitan area.

“New Orleans is pretty unique,” said Daryl Fairweather, chief economist at Redfin. While home prices are rising nationwide, they are falling in the New Orleans metropolitan area. “They’ve just dropped below 2022 prices,” she said.

Across the U.S., home prices have skyrocketed since 2020 due to a variety of factors, including the COVID pandemic. Another reason is the fact that current homeowners have largely secured low mortgage rates of around 3.5%, but new homeowners are being offered rates of over 6%. This means current homeowners are less likely to sell their homes and potential homebuyers are less able to afford homes.

Over the past two years, prices in St. Tammany Parish haven’t gone through the roof — but they’re not falling, either. Since July, home values ​​have been about the same as they were at their 2022 peak. On the North Shore, “prices have been volatile but pretty stable,” Fairweather said.

Still, these values ​​are significantly higher than in 2021, when the median home value was $250,000. Today, the median home is worth $310,000, according to Redfin data.

These nationwide trends are one reason why many Louisiana residents’ homes are likely to appreciate higher this year.

St. Tammany remains attractive to homebuyers because of its above-average public school system and lower home and flood insurance costs north of I-10, real estate agents previously told The Times-Picayune.

“I sold more on the North Coast last year than I did in my previous three years as an agent,” said real estate agent Rachel King in January. “They don’t have the same insurance crisis that we have on the South Coast.”