The housing market in San Francisco is showing signs of a genuine correction. According to market data (opens in new tab) from Compass, the city’s median sale price dipped approximately 15.3% from its peak in May 2022 to October of this year.
Despite these signals of a softening market, many homeowners are seeing no corresponding relief in their property tax bills. In fact, they’re seeing the opposite: higher bills. According to the assessor’s office (opens in new tab), the total assessment roll for real estate grew by roughly 2.12% in the 2024-25 tax year, even as market values softened.
This disconnect is rooted in how California’s assessment system works. Under Proposition 13, a property’s assessed value can increase up to 2% each year, regardless of what’s happening in the market. That “inflation factor” applies automatically unless the market value drops below the adjusted assessed value — and even then, the decline has to be proven by the homeowner through a formal appeal.
In other words: Unless a homeowner actively challenges the assessment, the taxable value of their property continues to rise at nearly 2% per year — even if the market value is declining.
Appealing your assessed value
This dynamic has contributed to a record number of San Francisco homeowners contesting their assessed values with San Francisco’s Assessment Appeals Board. According to data tracked by California’s Board of Equalization (opens in new tab), the number of formal appeals in San Francisco has exploded. Residential appeals jumped from 261 in 2018-19 to 5,195 in 2023-24. What this means: Many properties remain assessed at values that no longer reflect the market reality, leading to higher tax burdens on homeowners.
Appealing an assessed value requires homeowners to file an appeal, submit an evidence packet, and present their case at an Assessment Appeals Board hearing. However, many homeowners simply don’t have the time, resources, or desire to navigate this process.
“Most homeowners don’t have the bandwidth or tools to build a valuation packet and argue an appeal in front of the Appeal Board,” said Billy Marsden, Founder of Parcel (opens in new tab), a company that helps homeowners challenge over-assessments.
Parcel offers complimentary consultations (opens in new tab) to help homeowners understand whether their property’s assessed value is accurate — and, if needed, handles the appeal process on their behalf.