San Luis Obispo County Property Values Rise 4.7% in 2025 Amid Home Sales Slowdown, New Report Shows

Property values in San Luis Obispo County saw a modest increase of 4.74% in 2025, according to the latest County Assessor Annual Report. The rise closely aligns with the average growth of 4.62% across all 58 counties in California. 

Real estate activity changed in the past year, with a slowdown in home sales, noted County Assessor Tom J. Bordonaro. Homes stayed longer on the market, and there have been some price reductions. 

As a result, there were fewer changes in ownership, leading to fewer properties requiring assessment. 

According to the report, the total assessed value in the county in 2025 was $78.3 billion, accounting for 184,510 assessments. Total exemptions increased by more than 13%. 

At the same time, homeowners’ exemptions fell from $333.9 million in 2024 to $332.6 million in 2025, highlighting that more out-of-county residents are owning homes. 

This year was successful for the Assessor’s Office as its proposals were included in Assembly Bill 1516, Bordonaro said. The proposed legislation became an Assembly Revenue and Taxation Committee bill that was signed into law by the Governor. 

The Assessor’s Office also supported Senate Bill 710, which grants a property tax exclusion for small solar systems. This will generate more savings for taxpayers, Bordonaro said. 

Impacts of Proposition 19

Proposition 19, which is a Constitutional amendment imposing new limits on property tax benefits for inherited property, continued to affect the county, Bordonaro said. Homeowners have been transferring their existing lower property tax base values to San Luis Obispo County. 

The number of lower base year values transferred into the county was higher than the number transferring out.

“This will result in yet another year of lower property tax revenue for local agencies,” Bordonaro said. 

The implementation of Proposition 19 is a significant challenge that will lead to turbulent times for taxpayers, he said. 

Proposition 19 allows a child or children to keep the lower property tax of the parent(s) only if the property was the primary residence of the parent(s) and the child/children make it their principal residence within a year of transfer. 

Top 5 Cities with Assessed Value Increases

The top five cities where assessed values increased the most were:

• Arroyo Grande: Increase of 3.9%, total value in 2025 stood at $4.43 billion
• Atascadero: Increase of 4.3%, total value was $5.75 billion
• Grover Beach: Increase of 5.75%, total value was $2.47 billion
• Morro Bay: Increase of 4.9%, total value was $3.6 billion 
• Paso Robles: Increase of 5.23%, total value was $7.58 billion 

Top 5 Business Assessments 

The top five business assessments by business use code were:

• Solar/fuel cell energy: Total assessed value of $803 million
• Winery: $199 million
• Business: $169 million
• Contractor/construction: $152 million
• Manufacturing: $112 million

The top 5 business assessments by parcel value were:

• E&J Gallo Winery: Total assessed value of $95 million
• Treasury Wine Estates Americas Co: $89 million
• Vespera Pismo Beach Holdings, LLC: $84 million
• Blue Oak TIC Owner I, LLC: $77 million
• Firestone Walker Inc.: $76 million