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# Second isn’t the first loser
- URL: https://www.smdp.com/second-isnt-the-first-loser/
- Published: 2008-07-12T15:00:00.000Z
- Updated: 2026-10-24T20:09:33.000Z
- Author: Kevin Herrera
- Tags: Environment, Santa Monica, #archive-import

*Santa Monica property values jump by 10.8 percent, second highest in county*

CITYWIDE Property values jumped by 10.8 percent during the last fiscal year, the second highest increase in Los Angeles County behind only Beverly Hills.

The estimated worth of land in Santa Monica is just over $23 billion, much of which is attributed to Santa Monica’s temperate climate, proximity to the beach, popular shopping districts, quality schools and extensive public transportation network, said Los Angeles County Assessor Rick Auerbach, who recently released the 2008 Assessment Roll.

Throughout the county, property values increased by 6.9 percent for a total just over $1 trillion. This is the second trillion dollar roll in a row, and, while a slowdown in the residential market resulted in a smaller increase than last year’s 9.3 percent figure, Auerbach said that Proposition 13 is the main cause of this year’s increase due to the constitutional amendment’s stabilizing effect on assessed values.

New construction on properties was also a cause for the increase.

“In a rising market, because of the 2 percent increase cap included in Prop. 13, assessed values do not keep pace with market values,” Auerbach said. “On the other hand, in a market such as we now have, the cap keeps us from experiencing a dramatic decrease in assessed value.

“Prop. 13 not only allows property owners to predict what their tax liability will be,” he added, “it also prevents substantial swings in property tax revenue which may occur with other types of taxes, depending on the economy.”

Auerbach noted that negative growth has occurred in assessed values only twice in Los Angeles County — a 1.7 percent decrease in 1995 and a.2 percent decline in 1996 — after the passage of Prop. 13 in 1978.

Home sales and changes of ownership occurring between Jan. 1, 2007 and Dec. 31, 2007 were still the largest component of the $71.1 billion increase over the previous $1.038 trillion dollar roll.

In Santa Monica there were 718 property transfers, both commercial and residential, from July 2007 to May of 2008\. This was down almost 27 percent from the year before and 38 percent from 2005-06.

Dave Carr with the Finance Department at City Hall said he was surprised by the 10.8 percent increased in assessed value, city staff estimating it would be closer to 4 percent. He believes the number will drop to 9 percent or so when St. John’s Health Center receives an exemption since it is owned by a religious institution. St. John’s is currently constructing a new health center, work required following the 1994 Northridge earthquake.

The average increase in property value in Santa Monica was $1.3 million, Auerbach said.

“That is most likely due to commercial properties changing hands, but Santa Monica is a very affluent community so residential sales could have a lot to do with that,” he added.

For example, if someone sells their home north of Montana Avenue after living there for 40 years or more, the increase in assessed value could be a million dollars or more, Auerbach said.

The Assessor’s Office has embarked on a mission to reevaluate properties following the drastic slump in the housing market, causing property values to dip. The office reviewed the values of nearly 320,000 homes and reduced assessments by an average of $73,000 on 120,000 single-family residences, saving homeowners an average of $750 on their property tax bills.

In Santa Monica, only 3.5 percent of properties received a reduction, with the average being $164,000\. By comparison, in Palmdale and Lancaster, 81 percent of homes received a reduction.

“I was expecting reductions, but that small a percentage, it was surprising,” Auerbach said. “It pays to live in a beach community.”

For City Hall this means more property tax revenue to pay for services while other cities are forced to make cuts.

As always, Los Angeles City was the highest valued municipality in the county with a total assessed value of $414 billion (a 7.8 percent increase), followed by Long Beach with a $45 billion assessment (a 7.7 percent increase). Santa Monica was third.

The 2008 Annual Report containing data, charts, information relating to cities is available in a downloadable format on the assessor’s Web site at http://assessor.lacounty.gov.

*Originally published in the Santa Monica Daily Press print edition on July 12, 2008.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/071208.pdf?ref=smdp.com)