All the new construction in Meridian is making an impact on the city’s market value.
Over the past year, Meridian’s total market value has increased by more than 20%, growing from $12 billion on Jan. 1, 2018, to $14.5 billion on Jan. 1, 2019. The reason for that increase is simple, said Brad Smith, chief deputy for the Ada County Assessor’s Office. He said it’s “all the new growth is coming in.”
Last year an average of 13 houses were newly occupied in Ada County every day. Five of those houses were in Meridian — double what any other city received, Smith said.
Meridian approved more residential permits than Boise or any other city in the Treasure Valley in 2018, according to data from the Community Planning Association of Southwest Idaho, or COMPASS. The value of new residential construction in Meridian at the beginning of the year was also higher than in Boise or Eagle, making up more than one-third of the all new residential construction in Ada County at that time, according to documents from the Ada County Assessor’s Office.
Meridian’s residential growth has been steadily increasing since 2011. In fiscal year 2018, the city approved permits for 1,232 multifamily units and 1,812 single-family houses — almost beating the city’s all-time high of 3,362 residential permits approved in fiscal year 2005.
In fiscal year 2018 Meridian approved more residential permits than Boise and Nampa combined. During the same period, Boise approved 1,326 residential permits, and Nampa approved 917 residential units.
Valuation of Meridian homes also increased over the year, Smith said. The total residential market value in Meridian increased by 23%, from $9 billion to $11.1 billion. During that same time, the number of residential parcels increased by 7%, to 41,328.
Of the $2.5 billion increase in the city’s total market value from 2018 to 2019, a little more than $2 billion was from residential. The rest — $394 million —was from an increase in the value of commercial.
Unlike like residential, which is fairly consistent, commercial growth can vary from year to year, said Carl Miller, chief demographer from COMPASS. He said as the city has grown, there have been notable increases in jobs in the city — the gauge COMPASS uses to track a city’s commercial growth. Growth in Meridian’s labor market made up 23% of the Treasure Valley’s job growth between 2013 and 2018, and 12% of the state’s, the Meridian Press previously reported.
Just like the city’s increase in market value, the majority of the city’s permit growth was in residential. Meridian approved 116 new commercial permits in fiscal year 2018 — compared to 3,044 residential units it approved. That doesn’t mean that Meridian’s commercial market isn’t also growing quickly.
From the beginning of last year to this year, the value of new commercial construction increased by 62% — from $108.5 million to $175.8 million. The $67.3 million increase in the value of new commercial construction was a larger increase than Boise, Star and Eagle all experienced combined. The value of new commercial construction in Boise on Jan. 1, 2019 was $224.7 million, a $19.4 million increase in value over the previous year.
HOUSE TO HOUSE
The assessed value of Meridian houses saw a big increase of almost $40,000 from the beginning of 2018 to 2019. The median value of existing homes on Jan. 1, 2019, was $300,000, up from $260,700 on Jan. 1, 2018. That increase was fairly consistent across Ada County.
Boise’s assessed home values went up by $42,400 — from $239,700 to $282,100. That trend is seen across the Treasure Valley, Miller said.
Meridian’s tax burden fell largely on residents in 2018, with residents contributing 68% of the city’s property tax revenue and commercial contributing 32%. That was higher than Boise’s residential tax burden, where residents paid 63% of the tax burden, and much lower than Star and Eagle, where residents paid 92% and 86% of the tax burden.