Kyle’s commercial property valuations soar to record levels, residential valuations also increase

The Kyle Report has learned that the commercial property valuations in the city increased this year more than in the last six years combined. Residential valuations also increased significantly this year over 2020.

This means, if the property tax rate remains unchanged, the City will have a lot more money to spend during the next fiscal year which begins Oct. 1.

Although the Hays Central Appraisal District has yet to officially post preliminary figures for 2021, according to numbers obtained by The Kyle Report, commercial property valuations increased nearly $260 million this year over 2020. The previous record year for commercial property valuation increases was 2010 when the valuations increased by $75 million from the previous year.

Last year, the total property valuation for commercial property in Kyle was $524,242,917. This year that number is more than three quarters of a billion dollars — $783,701,058. That’s an increase of $259,458,141, an astronomical 49.49 percent.

(Updated material begins here) The Kyle Report has also learned HaysCAD plans to release its preliminary numbers later today. It will also show a combined commercial real estate and personal value of  $783,701,058 this year, but will say that's a net change of $170,737,211 from last year's total, but still an overall growth of 127.85 percent. The district's numbers will also show commercial valuations accounted for almost half of all new growth in Kyle during the last year. It will report a new residential count of 533 worth $119,213,900 during the past year and a new commercial count of 15 worth $108,846,554 which is 47.73 percent of the total new assessed valuations. 

“Based on the preliminary AV estimates provided to us by HaysCAD yesterday, here is a quick comparison of estimated change in AVs from prior tax year.” Kyle’s Director of Finance, Perwez A. Moheet, said today: “This comparison is before any adjustments such as for exemptions, etc. Residential single family:  $423.6 million or 15.7 percent increase; residential multifamily: $62.3 million or 19.6 percent increase; residential combined: $485.8 million or 16.1 percent increase (includes both single and multifamily); commercial: $170.7 million or 27.9 percent increase (includes personal property) (End updated material)

In spite of this astounding growth, commercial assessed valuations are still dwarfed by residential valuations, which also increased dramatically — 31.22 percent — from $2.38 billion in 2020 to $3.124 billion this year. The assessed value of property designated as multi-family was $379,106,479 or $2.7 billion less than single family residential valuations. That means multi-family only accounts for 10.82 percent of the total residential property valuations in the city.

In all, residential valuations account for 69.91 percent of the total market value in Kyle, while commercial valuations account for 15.64 percent.

This chart visually displays the annual increases in commercial property assessed valuations in the City of Kyle from 2007 through this year: