Milwaukee's property assessments have gone up all over. The city assessor explains why

Milwaukee's 2024 property assessments are landing in mailboxes, and some are seeing significant increases in the valuation of their homes and businesses.

Citywide, values increased 17.4%, while all aldermanic districts saw an increase of at least 14% for residential properties and at least 10% for commercial properties, according to data from the Assessor's Office.

"The recent property assessments that have been sent to residents have raised a lot of questions and caused much frustration," Ald. Milele Coggs said in a statement.

She said she has asked the Assessor's Office to come before a Common Council committee to answer questions and provide information about its process for determining real estate values.

In the wake of the assessments' release, the Journal Sentinel sat down with City Assessor Nicole Larsen to ask why assessments increased so much and what residents can do if they believe their assessment is incorrect.

Here's what she said, with answers edited for length and clarity:

Why did Milwaukee property assessments increase so much in 2024?

Nicole Larsen: A couple of reasons.

In 2023 we had a "maintenance" year, which meant we carried the values from 2022 forward to 2023. So, when the 2024 assessments came out, you're really seeing two years of increases because we didn't account for those increases in 2023.

It comes down to what the real estate market is doing. Assessed values are really a reflection of what is happening in the real estate market, and it's actually kind of a delayed response. So, in 2024, we're looking at what the real estate market did in the latter part of 2022 and the first about three quarters of 2023. Then we place those values on properties as of Jan. 1, 2024.

Even with the high interest rates, prices are still high in Milwaukee, and they're staying that way.

Why do a 'maintenance' year in 2023?

Nicole Larsen: In 2020 during the pandemic, there were a record number of objections to assessments filed.

Between the Assessor's Office's resources, the time the Board of Review has and the number of objections, a backlog developed.

I came aboard in January 2022 and those were still backed up. So, what we wanted to do is catch up on those objections, and we've done a really good job at it. I think we have under 20 that remain outstanding when there were hundreds when I came aboard.

We've just about cleaned up that backlog, but we were still working on it for 2023.

Another issue was staffing. There was a lot of turnover in 2021 and we saw some in 2022 as well, so when you don't have the staff to process those objections, that process obviously slows down.

The Assessor's Office doesn't come to each property during a 'revaluation' year, correct?

Nicole Larsen: In a perfect world, yes, we would get into every property, but we have about 23 appraisers overseeing 151,000 taxable properties. So, no, we don't get into every property every year.

For our residential valuations, we use computer-assisted mass appraisal, and we build models based off of the sales that have happened in the real estate market.

The assessed values have increased by different amounts across Milwaukee's aldermanic districts. Why is that?

Nicole Larsen: It's a reflection of the sales.

When you have districts that have properties that have a lower value overall ― and that's not a value judgment, it's just a strict dollar value ― when you have an increasing market, you're going to see a greater percent increase.

In District 1 on the city's north side, for instance, the median assessment was $85,500 in 2023 compared to $109,100 in 2024.

In contrast, the median assessment in District 14 that covers Bay View was $202,000 in 2023 compared to $239,600 in 2024.

There's more room to go up in districts with the lower-value properties than in districts with higher-value properties.

Also, when people get priced out of neighborhoods like the east side or Bay View, they move into other neighborhoods, increasing those values.

What would you say to people who worry they are being priced out of their homes?

Nicole Larsen: That's a valid concern.

I have a couple of responses.

An increase in the assessment doesn't guarantee an increase in taxes. Looking at the dollar amount doesn't tell the full story.

You really have to look at your percentage increase as compared to the citywide average percentage increase. If your increase is above the citywide average, you may see an increase in your taxes. If it's below that citywide average, you would see a decrease in your taxes.

I'm qualifying this because of the Milwaukee Public Schools referendum.

(Voters in April approved allowing the Milwaukee School Board to raise property taxes above state set limits. The extra spending is projected to increase Milwaukee property taxes by about $2.16 per $1,000 of property value.)

There are positive aspects to an increase in value, too. For many people if not most, your home is your largest investment and your highest-valued asset. Like any other asset, we want those to appreciate.

What else should people know about Milwaukee assessments this year?

Nicole Larsen: One question I always ask people is, do you think you could sell your property for the value where we have it assessed? Oftentimes, the answer is yes. That's a pretty good indicator that we are on target with the assessment.

If people question that, I say my first step is reach out to a broker and ask them to give you an opinion or a comparative price analysis and see what other similar properties are going for. They often do that for free.

If you think that we're way off base, a better way to get a more precise valuation is to contact an appraiser and have an appraisal conducted.

We always ask people to call us (414-286-6565) and ask us what the property record card shows. We might have incorrect information.

If we have the square footage wrong, if the bathroom count is wrong, if they think that we have something recorded incorrectly, let us know because our goal really is accuracy.

A lot of people think we just want to raise the assessment because we want to raise taxes. That is absolutely not at all.

The property assessment is to ensure fair taxation, and it determines the portion of the tax levy that every taxable property owner is responsible for.

The Assessor's Office does not set the tax levy. That is set by the budgets adopted by taxing jurisdictions that include the city, Milwaukee County and Milwaukee Public Schools.

Alison Dirr can be reached at adirr@jrn.com.

This article originally appeared on Milwaukee Journal Sentinel: Milwaukee's assessor explains why property assessments rose this year