How 2026 Property Assessments Are Being Shaped by a Softening Housing Market

As we move into 2026, many rental property owners and homeowners across British Columbia are seeing a direct reflection of recent real estate trends in their 2026 property assessment notices. After years of robust growth, the housing market has softened—and this slowdown is now being captured in the latest assessment values that local governments use to determine property taxes, market positioning, and valuation benchmarks.

Softening Market Translates Into Lower Assessments

BC Assessment, the Crown agency responsible for determining market values for tax purposes, released the 2026 property assessments in early January 2026. These assessments are based on a valuation date of July 1, 2025 — meaning they reflect market conditions as of mid‑2025. According to BC Assessment data, the softening provincial housing market is clearly evident in the numbers. The agency reports that in the Lower Mainland region, total property assessments declined from about $2.01 trillion in 2025 to about $1.92 trillion in 2026, signaling a reduced overall market value across the region. As cited by BC Assessment, many homes in the Lower Mainland are assessed lower than the previous year, with downward adjustments extending across multiple communities.

Across Metro Vancouver, the average assessed value of a single‑family home fell approximately 5% year‑over‑year, from about $2.205 million in 2025 to around $2.092 million in 2026. Certain sub‑markets experienced even steeper declines — for example, the University Endowment Lands saw values drop by roughly 8%.

Why Assessments Are Down — And What It Really Means

Assessed value changes do not always track dollar‑for‑dollar with current market sales, but they are a strong indicator of broader housing demand trends. In a cooling market, sales prices stagnate or retreat, and fewer transactions occur, both of which reduce the compendium of recent sales data used in mass appraisal models. As noted in Breaking Bank, property assessments are based on older data and mass appraisal models, and therefore often differ significantly from true market value especially in shifting markets.

Property assessments are calculated using mass appraisal techniques that incorporate comparable sales from preceding months. When those sales soften — as they did through 2024 and 2025 in BC’s major markets — assessment models adjust downward in the next cycle. This is a normal part of how assessment systems work, but it can be surprising to owners who are accustomed to annual increases. Experts have emphasized that assessments are snapshots of value from prior valuation dates and do not necessarily reflect current listing or sale prices at the time of notice issuance.

It’s also important to remember that a lower assessed value doesn’t automatically reduce property taxes. Municipal tax rates are adjusted based on overall community assessment totals — so if your property decreases less in value than others, your tax burden could stay the same or even increase. Likewise, if your assessment falls more than the average in your area, your property taxes may decrease.

Regional Variations Across BC

While assessments trended downward in the Lower Mainland, other BC regions showed different patterns:

• Greater Victoria and parts of Vancouver Island saw relatively stable assessments, with more modest value changes due to steadier demand.
• In resort and luxury markets such as Whistler, median assessments remained flat or increased slightly, bucking the broader regional trend.
• Other areas with lower transaction volumes displayed a wider range of value changes, in some cases reflecting localized demand pressures or inventory limitations.

These differences highlight a key point: property assessments are not uniform across the province, even when broader trends suggest a market slowdown.

What This Means for Rental Property Owners

For rental owners, lower assessments can influence both perception and planning:

1. Property Taxes Aren’t Always Lower
A drop in assessment doesn’t guarantee a tax bill reduction. Taxes depend on the municipality’s overall revenue needs and how your assessment compares to others. Understanding local tax rates and assessment totals enables better financial planning.

2. Rent‑Setting and Market Positioning
Assessments don’t set rental rates, but they influence owner expectations. A softer market often means more careful benchmarking against current market rents rather than relying on previous years’ trends.

3. Renewal and Valuation Timing
If your assessment appears out of line with current market conditions (especially if it hasn’t been updated for renovations or improvements), BC Assessment allows owners to file a Notice of Complaint (appeal) by early February 2026 for independent review. Comparing your assessment to similar properties can help determine whether an appeal is warranted.

Tips for Rental Owners in the Current Assessment Cycle

• Review your assessment notice carefully: Compare it with recent sales in your neighbourhood rather than assuming future tax impacts.
• Understand property tax rates: Stay informed about municipal budget decisions, as these ultimately determine your tax bill.
• Keep records of improvements: If you completed significant upgrades that aren’t reflected in your assessment, documentation may support a review or appeal.
• Consult professionals: An accountant, property manager, or tax expert can explain how assessments feed into tax planning and rental income projections.

Get in touch with one of our agents to discuss how your assessment may affect your rental.