New Home Construction and Cannabis Power Property Value Growth in Fresno and Tulare Counties
The city of Fowler in California experienced a remarkable 17.5% increase in property value growth for the 2023-24 fiscal year, largely attributed to new home construction. This surge in property values is not only beneficial for homeowners but also for public education and other essential services.
Property taxes play a crucial role in funding local governments and maintaining our American way of life, according to Fresno County Assessor/Recorder Paul Dictos. In the San Joaquin Valley region, the property tax base is expanding due to new home construction and rising agricultural values. However, in Tulare County, a cannabis distribution center in Woodlake has led to a significant economic boost.
Compared to the county-wide growth rate of 7%, Fowler’s homes, businesses, and agricultural properties experienced remarkable growth. The city of Fowler, with a population of around 7,000 people, exhibited the fastest-growing property values in Fresno, Tulare, and Stanislaus counties. This growth in property values can be attributed to new construction projects rather than purely market-driven factors.
Several home construction projects have contributed to Fowler’s property value growth, including a subdivision by KB Homes that added 90 homes, ongoing construction of 100 planned homes by Woodside Homes, and another 140 homes in two phases by K. Hovnanian Homes. Additionally, an expansion of Bee Sweet Citrus’ processing facility has recently been completed.
Fowler has not only experienced a surge in property values but has also seen population growth of 3.3% year-over-year, as reported by the California Department of Finance. City Manager Wilma Tucker describes Fowler as a desirable community, highlighting its close-knit nature, excellent school district, safety, and residential growth.
In Fresno County, overall property values increased by 7% to reach $109.8 billion for the 2022-23 tax year. It is worth noting that Proposition 13, which pegs taxes on property values at the purchase price, generally limits tax adjustments to 2% for nine out of ten property owners.
The property assessments for various cities in Tulare County corresponded with the county’s total growth, which amounted to a 6.7% increase from the previous tax year, reaching $47 billion. Visalia and Tulare experienced property assessment growth of 7.7% and 6.8%, respectively. However, Woodlake showcased the most significant growth at 8.9%.
Woodlake stands out due to its earlier establishment of a legal marijuana dispensary. Furthermore, the opening of what developers call the world’s largest marijuana distribution center in April has contributed significantly to Woodlake’s economic growth. The 87,000-square-foot warehouse, operated by Los Angeles-based Nabis, has added 100 employees to the city.
Despite the significant increase in home prices since the 2008 recession, most long-term property owners won’t see an equivalent rise in their property assessments due to the protections of Proposition 13, according to Tara Freitas, Tulare County Assessor/Clerk-Recorder.
In summary, new home construction and the cannabis industry have played a crucial role in driving property value growth in Fresno and Tulare Counties. Fowler, in particular, has experienced remarkable growth due to new construction projects, while Woodlake has reaped the benefits of its early involvement in the marijuana industry. These property value increases not only benefit homeowners but also contribute to the funding of important public services and education.
