41% of DeKalb homes may be overvalued, O’Connor says

O’Connor says DeKalb County residential assessments are lagging market reality, with an estimated 41% of homes valued above true market value. The warning comes as 2026 property values continued to rise, but at a slower pace than the prior year, increasing the chances of tax appeals.

Why it matters: - DeKalb County homeowners could be paying taxes on assessed values that exceed what their homes would fetch in the open market. - The estimate adds fuel to a growing wave of property tax appeals as valuation disputes widen across the Atlanta area. - Residential overvaluation matters most in a county where home values have climbed sharply over the past decade and remain a major share of the tax base.

What happened: - O’Connor said 41% of DeKalb County residential real estate is overvalued. - The estimate comes from independent realtor studies that compared assessor values with market reality. - The release was dated July 14, 2026, and focused on DeKalb County, Georgia. - The assessment update showed DeKalb home values rose 1.8% in 2026 after a 3.8% jump in 2025, reaching a total of $78.33 billion.

The details: - Homes valued between $250,000 and $500,000 remained the largest bucket at $26.29 billion, after a 0.3% decline. - Homes under $250,000 fell 6.5% to $9.92 billion. - Homes worth $500,000 to $750,000 rose 3.5%, and homes worth $750,000 to $1 million gained 5.5%. - The most expensive homes posted the biggest increases. - Homes under 2,000 square feet accounted for $29.39 billion in value. - Homes between 2,000 and 3,999 square feet accounted for $42.43 billion and rose 2.4%. - Homes between 4,000 and 5,999 square feet jumped 6.2% to $5.83 billion. - Homes built before 1960 represented $22.72 billion, or about 29% of total residential value. - Homes built from 1961 to 1980 totaled $20.91 billion. - Homes built from 1981 to 2000 totaled $17.95 billion. - Homes built from 2001 to 2020 represented 20% of residential value. - New construction and raw land together made up 1% of total residential value. - An Atlanta-area realtor study found average home values rose 9.20%, compared with the assessor’s 1.8% figure, but that study covered all Atlanta counties, not just DeKalb.

Between the lines: - The 41% overvaluation estimate suggests the county’s assessed values may be trailing a faster-moving market, even if the exact gap is disputed. - The Atlanta-area comparison points to a broader disconnect between local assessments and realtor-driven market estimates. - DeKalb’s value growth is uneven, with older and midpriced homes carrying most of the market while lower-priced homes lost ground.

What happened: - Commercial property values in DeKalb rose 1.1% in 2026 to $35.61 billion, after a 2.1% increase in 2025. - Properties worth more than $5 million accounted for $29.99 billion, up 0.7%. - Property values between $1 million and $5 million totaled $4.27 billion, while those between $500,000 and $1 million totaled $716.29 million; both categories rose 4.3%. - The smallest business properties fell 0.5%.

The details: - Apartments remained the most valuable commercial category at $17.74 billion, even after a 0.9% decline. - Warehouse value climbed 8.9% to $5.85 billion, making warehouses the second-most valuable commercial property type. - Offices rose 3.9% to $5.84 billion, placing them just behind warehouses. - Retail values fell 1.2% to $3.91 billion. - Hotels, retail, and apartments all declined in value, while warehouses posted the strongest growth among major commercial types. - Commercial property built from 1981 to 2000 and from 1961 to 1980 was nearly tied at roughly $11.23 billion each. - Commercial property built from 2001 to 2020 represented 23% of value and fell 3.3%. - New commercial construction rose 6.3% to $1.83 billion. - Apartments built from 1981 to 2000 totaled $5.81 billion after a 0.9% decline. - Apartment land set aside for future development jumped 65.3%. - Garden apartments totaled $14.01 billion, mid-rise apartments reached $2.53 billion, high-rise apartments fell to $1.07 billion, and generic apartments totaled $135.37 million. - Office properties built from 1981 to 2000 led the category at $2.27 billion after an 8.9% increase. - Medical offices rose 10% to $671.58 million, and low-rise offices increased 8% to $1.95 billion. - Retail properties built before 1960 climbed 13.5%, while community shopping centers fell 6.9% and neighborhood shopping centers dropped 4.3%. - Single-occupancy stores rose 16.9% to $585.98 million, and malls rose 7.4% to $495.50 million. - Warehouses built from 1961 to 1980 made up 52% of warehouse value at $3.07 billion. - Warehouse land surged 528.60% in value. - Generic warehouses totaled $4.73 billion after a 10.7% increase. - Office warehouses rose 11.7%, and metallic warehouses gained 130.80%.

Between the lines: - The commercial picture is mixed, with industrial assets strengthening while retail and some apartment segments soften. - A nationwide Green Street study found commercial real estate values fell 7%, which contrasts sharply with DeKalb’s 1.1% increase and raises similar valuation questions for business owners. - The gap between local assessed growth and national market trends could encourage more commercial appeals.

What's next: - Homeowners and business owners in DeKalb County may file more property tax appeals if they believe assessed values remain above market value. - O’Connor is steering property owners toward its Property Tax Protection Program, which offers no upfront fee and charges only if taxes are reduced. - Future assessment cycles will show whether county valuations converge with realtor and market data or continue to diverge.

The bottom line: - DeKalb County assessments show continued value growth, but O’Connor’s 41% overvaluation estimate suggests many owners may have grounds to challenge their tax bills.