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Assessors say cap-rate shifts kept multifamily assessment gains small
Summary
Interim Assessor Libby Bridal told council multifamily assessments rose only 0.8% because higher capitalization rates (driven by elevated interest rates) reduce valuations; she said income-and-expense statements are not required but are strongly encouraged for more accurate appraisals.
Bridal said multifamily assessment changes were modest this cycle, with a reported increase of about 0.8%. She attributed the limited gain primarily to higher capitalization (cap) rates driven by elevated interest rates: "The higher the cap rate, the lower the value is typically the way that works," she explained.
When Councilmembers asked whether apartment owners are required to submit income-and-expense statements, Bridal replied that it is not a legal requirement but that the assessor's office strongly encourages submission because those documents help appraisers evaluate whether assessed values are accurate. "If they don't turn them in, then we would not make any change at all," she said.
