City assessor reports modest overall growth, apartment values decline and legislative changes affecting tax capacity

Bloomington’s city assessor, Tim Bulger, told the council that the 2025 assessment reflects stable residential values overall, a decline in apartment market values despite recent new apartment construction, and tax‑capacity effects from recent state legislative changes.

Bulger said the city uses a January 2 assessment date and a 12‑month sales study period to model values; value notices were mailed March 7 and the local board of appeal meets the week following the meeting. He reported the city added approximately $128 million in new construction value in the last assessment year — lower than the prior year’s roughly $164 million — and said residential property types contributed the largest share of net assessment growth while apartments were net negative on market change after accounting for new construction.

Bulger reported the median single‑family detached home value in Bloomington was about $365,400 and noted single‑family housing stock is concentrated in units built in the 1950s–1970s. On apartments he said many recent new units (Class A) have been built in the last several years, but apartment market values declined overall and Class A product showed the largest value declines, while Class B and C properties have shown more stable values due in part to value‑add opportunities.

On mortgage and market dynamics Bulger explained that mortgage rates that were once below 3% have created a locked‑in effect for many property owners; transactions in the city have declined from their 2021 peaks and that lower transaction volume affects assessment modeling and market signals.

Bulger summarized recent legislative changes with tax impacts: the homestead market value exclusion increased from $413,800 to $517,200 for 2025, expanding eligibility for the exclusion; changes to the 4(d) low‑income rental classification reduced the class rate (staff described the new rate structure and noted tax savings from the change must be reinvested in the property). He said those legislative changes, combined with assessment growth, produced a situation in which assessed value rose but tax capacity fell in the prior year — meaning some tax burden can shift depending on levy decisions.

Bulger closed with practical guidance for residents: the mailed value notice begins the review window and residents with questions should contact the assessing office for an informal review before the local Board of Appeal meeting. He said property taxes based on the 2025 assessment will be due in May and October 2026.