Property tax increase when building a two-story addition to a home in Danville, CA

Many of the houses in high-demand areas were built 70 to 100 years ago. Some are even older. These homes still have good bones and are in great locations, but they lack the space today’s homeowners need.

When a homeowner wants to stay in their neighborhood but needs more space, the logical thing to do is to build an addition. Of course, one of the first things people consider when deciding whether to build is “how will an addition affect my property taxes?”

Here’s a real-world example from Danville, CA, with a home originally built in 1951.

The front of the home before the addition

The front of the home after the addition

The homeowner had New Avenue build a two-story addition with a master suite, a great room, and a bar. The total costs of the project was $63,669.07.

When the project was complete, the property value went up 56.9%. (The usual annual increase for this property is 2%)). The taxes increased 48.7% for a total increase of $1,881 per year. The main home is not reassessed when an ADU is added.

When you add a livable space to your home, you can stay in the neighborhood you love and increase the value of your property.

Schedule your free call today. We’ll answer your questions and introduce you to the design–build team that’s perfect for your addition, ADU, or custom home.