The Fort Bend Central Appraisal District (FBCAD) plays a pivotal role in the property valuation and taxation process within Fort Bend County. As an independent governmental entity established under Texas law, FBCAD’s primary responsibility is to accurately and equitably appraise all taxable property within the county at market value.

Core Functions and Responsibilities

The Fort Bend Central Appraisal District serves as the cornerstone of the local property tax system through several key functions:

Organizational Structure and Governance

The Fort Bend Central Appraisal District operates under a specific governance structure designed to ensure fair representation of the county’s taxing entities:

Appraisal Review Board (ARB): This independent board of citizens appointed by the district’s board of directors resolves disputes between property owners and the appraisal district.

Professional Staff: FBCAD employs professional appraisers, data analysts, mappers, customer service representatives, and administrative staff to carry out its daily operations and responsibilities.

Relationship with Taxing Entities

The Fort Bend Central Appraisal District maintains important relationships with various taxing entities within the county:

• Information Sharing: The district provides certified appraisal rolls to these entities, which they use to calculate their tax rates based on their budget needs.
• Funding Mechanism: FBCAD’s operations are funded through assessments paid by the taxing entities it serves, with each entity’s contribution proportional to the tax dollars it levies.

Impact on Property Owners and the Real Estate Market

The Fort Bend Central Appraisal District serves as a critical component in the property tax system, balancing its statutory obligation to appraise properties at market value with the need to ensure fairness and equity in the distribution of the tax burden among property owners. Its operations directly impact every property owner in Fort Bend County and play a significant role in shaping the county’s fiscal health and real estate market dynamics.

This report serves as a resource for property owners, real estate professionals, policymakers, and investors, providing actionable insights into the current state of Fort Bend County’s real estate market. It is important to note that this report is not exhaustive but rather a summary of what the Fort Bend Central Appraisal District feels are the key market indicators. As appraisers, our role is to review transaction data and create models based on that data. We do not necessarily have a need to answer “Why?” but rather conduct statistical analysis on available data. This report is an attempt to answer the most common question we receive, “Why did my property value go up?”, by putting on an economist’s “hat” to provide insights into the underlying trends and factors affecting property values.

Key Market Drivers

Several interconnected factors are currently driving the Fort Bend County real estate market:

These investments have opened new areas for development while also increasing the desirability and value of existing neighborhoods with improved connectivity and amenities.

These key drivers interact in complex ways to create the current market conditions in Fort Bend County. Understanding these interactions is essential for interpreting current trends and anticipating future market movements.

Based on the research from multiple authoritative sources, the following information outlines the economic landscape of Fort Bend County, Texas:

The economic landscape of Fort Bend County is characterized by diversity, growth, and strategic development, creating a robust foundation for its real estate market and continued prosperity.

Median Home Prices

Fort Bend County’s housing market has shown mixed price trends in recent months:

1. Current Median Sale Price:
   • Median sale price for residential homesteaded property in urban markets: $468,442 (FBCAD)
   • Median sale price for residential homesteaded property in rural markets: $442,234 (FBCAD)
   • According to Redfin data, the median sale price in Fort Bend County was $362,775 for all residential property in February 2025, representing a 4.4% decrease compared to the same period last year.
   • The median price per square foot in Fort Bend County is $166, up 1.2% since last year.
2. Listing Price vs. Sale Price:
   • Federal Reserve Economic Data (FRED) shows the median listing price in Fort Bend County at $423,223 as of February 2025.
   • The gap between listing and sale prices indicates potential negotiation room in the current market.
3. Price Trends by Housing Segment:
   • According to the Houston Association of Realtors (HAR), different price segments are performing differently:
     • Homes priced between $150,000 and $249,999 saw a 2.0% increase in sales
     • Luxury homes ($1 million+) experienced a 1.9% increase in transactions
     • Mid-range homes ($250,000 – $999,999) saw decreases in sales activity
   • This suggests a bifurcated market with strength at both the affordable and luxury ends.
4. Historical Context:
   • FRED data shows that median listing prices have fluctuated significantly since 2016, with a sharp increase during 2020-2022, followed by a period of stabilization and slight decline.
   • Current prices remain significantly higher than pre-pandemic levels despite recent cooling.

Inventory Levels

Fort Bend County is experiencing a significant shift in housing inventory:

1. Current Inventory:
   • Active listings in the Greater Houston area, which includes Fort Bend County, reached 31,112 in February 2025.
   • This represents a 33.7% increase compared to February 2024 levels.
   • According to HAR, this is the highest volume of available homes since July 2011 when there were 32,096 units.
2. Months of Inventory:
   • The months of inventory in the area has increased to 4.4 months from 3.3 months in February 2024.
   • This indicates a shift toward a more balanced market compared to the seller’s market conditions of recent years.
   • For context, the national supply stands at 3.5 months, according to the National Association of Realtors.
3. Inventory by Property Type:
   • Single-family homes dominate the inventory.
   • Townhomes and condominiums have seen inventory expand from a 3.9-months supply in February 2024 to 6.2-months in February 2025, the highest level since June 2012.

New Construction Trends

New construction activity in Fort Bend County continues to respond to market demands:

1. Construction Activity:
   • Based on Partners Real Estate data, multi-family construction leads with over 3 million square feet under development.
   • Residential construction remains one of the key industries in Fort Bend County’s economic base.
2. Development Patterns:
   • New construction is clustered in key residential submarkets like Cinco Ranch, Richmond/Rosenberg, and Sugar Land/Missouri City.
   • Mixed-use master-planned developments like Austin Point are emerging as significant contributors to new housing stock.
3. Future Projections:
   • With Fort Bend County’s population expected to reach 1.8 million by 2050, continued new construction will be necessary to meet housing demands.
   • The current inventory expansion suggests builders are responding to anticipated future needs.
4. By the Numbers:
   • Residential: 7,691 new improvements
   • Commercial: 306 new improvements

Sales Activity

The Fort Bend County housing market is showing signs of cooling in terms of transaction volume:

According to HAR Chair Shae Cottar, “We are seeing a shift to a more balanced market, arguably a buyer’s market, which offers more opportunities for those looking to purchase a home.”

Current Sales Volume:

According to Redfin, there were 818 homes sold in Fort Bend County in February 2025, down 7.0% from 880 homes in February 2024.

HAR reports that single-family home sales across the Greater Houston area declined 3.0% year-over-year in February 2025.

Days on Market:

Homes in Fort Bend County are taking longer to sell, with the median days on market increasing to 51 days in February 2025, compared to 49 days a year earlier.

HAR data for the Greater Houston area shows days on market increased from 58 to 59 days.

Market Dynamics:

The cooling in sales activity is attributed to economic conditions, including elevated mortgage rates and inflation concerns.

Source: Houston Association of Realtors

Property Types

Different property types in Fort Bend County are experiencing varying market conditions:

The inventory of townhomes and condominiums has expanded significantly, reaching a 6.2-months supply.

1. Single-Family Homes:
   • Single-family homes continue to dominate the market in terms of both inventory and sales representing approximately 75% of all property in Fort Bend County.
   • Existing home sales totaled 3,876 in February 2025 across the Greater Houston area, down 4.1% compared to the same time last year.
2. Townhomes and Condominiums:
   • This segment has experienced a significant decline in sales, with HAR reporting a 21.9% year-over-year decrease in February 2025.
   • Despite the sales decline, prices have increased, with the average price rising 11.0% to $287,746 and the median price increasing 4.4% to $248,500.
   • The inventory of townhomes and condominiums has expanded significantly, reaching a 6.2-months supply.

Source: Houston Association of Realtors

3. Luxury Properties:
   • The luxury segment ($1 million+) has shown resilience with a 1.9% increase in transactions.
   • This segment appears less susceptible to interest rate fluctuations compared to mid-range properties.

Impact on Property Values Assessment

The current housing market trends have several implications for property values assessment:

Residential increasing slightly while commercial relatively flat with some segment specific declines in value.

1. Assessment Challenges:
   • The cooling market with declining median prices (-4.4% year-over-year according to Redfin) has led to  smaller increases in value; however, homestead caps are still increasing 10% for many property owners due to large increases over the last few years.
   • The gap between listing prices and sale prices suggests potential overconfidence in some segments.
2. Valuation Methodology:
   • The Fort Bend Central Appraisal District uses prior year market data to determine property values.
   • The Texas Constitution requires properties to be valued at 100% of their market value, so the recent price action is reflected in assessments.
3. Market Segmentation:
   • Different performance across price segments (with strength in both affordable and luxury segments) may lead to varied assessment impacts.
   • Residential increasing slightly while commercial relatively flat with some segment specific declines in value.

Property Values Assessment

The Fort Bend Central Appraisal District (FBCAD) assesses property values using a comprehensive approach that integrates recent sales data, prevailing market trends, and specific property characteristics (FBCAD, 2025). This methodology ensures valuations are equitable and reflective of current market conditions in Fort Bend County. For the 2025 tax year, the FBCAD’s proposed notice values indicate a moderate increase across various property categories, driven by robust demand, new construction, and regional growth patterns.

Residential Property Values

Residential property values have also risen, with distinct differences between urban and rural markets. In 2025, the average sale price in urban markets increased by 5.17% from $445,420 in 2024 to $468,442, while rural markets saw a sharper 10.79% rise from $399,160 to $442,234 (FBCAD, 2025). This suggests faster appreciation in rural areas, potentially driven by demand for space and new developments. Countywide, the total proposed market value for residential properties grew from $123.38 billion in 2024 to $125.47 billion in 2025, approximately 1.7%, with Lamar CISD showing the largest jump from $32.91 billion to $34.87 billion (FBCAD, 2025).

Commercial Property Values

Commercial property values vary significantly by school district, reflecting localized economic activity and development. Katy ISD leads with the highest total proposed market value for 2025 at $27.58 billion, comprising $13.55 billion in land value and $11.41 billion in building value (FBCAD). This dominance is partly due to new construction, including retail and office condominiums, which signal a recovery in the commercial sector (FBCAD, 2025). However, income properties show mixed trends: multi-family properties declined by 6%, offices by 10%, and retail by 8% on a notice-to-notice basis, while distribution warehouses saw a modest 2% decrease, supported by projects like Trammell Crow’s 1.35 million square foot industrial park in Missouri City (FBCAD, 2025).

Land Values

Land values in Fort Bend County have experienced consistent growth, with the total proposed land value for 2025 reaching $39 billion, a 5.12% increase from $37 billion in 2024 (FBCAD, 2025). This rise is underpinned by trends in vacant land sales, particularly in rural areas, where the average sales price surged by 28% from 2023 to 2024, compared to a 24% increase in urban areas (FBCAD, 2025). The disparity highlights stronger appreciation in rural markets, possibly due to demand for larger tracts, with prices ranging from $20,000 to $30,000 per acre in rural zones versus $70,000 per acre in high-demand areas like Rosenberg and Katy (FBCAD, 2025).

Impact of New Construction and Development

New construction is a pivotal factor influencing property values. In 2024, Fort Bend County added 7,691 new homes, with Lamar ISD contributing 5,292 (FBCAD, 2025). Ongoing large-scale projects, such as Austin Point (4,700 acres, opening 2025), Indigo (235 acres, first residents by March 2025), and Brookewater (850 acres, 2,500 homes), are set to further expand housing supply (FBCAD, 2025). These developments are likely to stabilize prices in high-demand areas by increasing inventory, while boosting values in emerging neighborhoods.

Homestead Exemption

The homestead exemption remains the easiest way to reduce your property taxes by as much as 20%.

We want every property owner to be fully informed as to the various ways they can reduce their property tax burden.

Beyond that, you may be eligible for the over 65, disability, or veterans among others.

In 2020, FBCAD launched a new online exemptions portal that allows for remote submission of exemptions applications and emailed status updates.

The portal can be accessed by visiting https://www.fbcad.org/exemption-application/

Also, a full list of exemptions can be found at www.fbcad.org/fbcad-forms/ under “Homestead Exemptions” and “Miscellaneous Exemptions”

If you want to check to see what exemptions are associated with your property, please search for your account on our website at https://esearch.fbcad.org/

Please note that Texas law prohibits the appraisal district from displaying certain information in order to protect your privacy.

Our Information and Assistance team is on standby to address any exemption questions you may have. Reach them by phone at 281-344-8623 or send an email to info@fbcad.org

Appeals

We have made significant changes to make the online appeals process more transparent and user-friendly.

The value appeal process provides another avenue for reducing your property’s value, which may reduce your overall tax burden. You know your property best and may have additional information specific to your property or market area that supports a change in value. For this reason, the state legislature created the protest process to officially appeal the value set by the appraisal district. For more information, please visit the “Appeals” section of this website at www.fbcad.org/appeals/

Appealing your value can be a nerve-racking experience. Recognizing this, the Texas Comptroller has produced a set of videos that provide an overview of the protest process for individual homeowners and small businesses. The videos also cover the most common situations that arise in a protest hearing. We host these videos here at www.fbcad.org/property-tax-videos/

Senate Bill 2: The Property Tax Relief Act

The Texas Legislature passed Senate Bill 2, known as the “Property Tax Relief Act,” during the 2023 legislative session. While portions of this legislation have already taken effect, several important provisions become effective in January 2025:

Governance Restructuring: Central appraisal districts with populations of more than 75,000 now have a fixed nine-member board consisting of 3 popularly elected members, 5 appointed members, and the tax-assessor collector. The CAD BOD is also now responsible for hiring individual ARB members.

Circuit Breaker Limits: Starting January 1, 2024, SB 2 implements a 20% “circuit breaker” limit on increases to the appraised value of non-homestead properties valued at $5 million or less. This provision aims to protect property owners from dramatic year-over-year increases in property valuations.

Increased School Tax Exemption: The general homestead exemption for school taxes increased from $40,000 to $100,000, resulting in significant savings for homeowners on their school district tax bills.

School District Funding Adjustments: To compensate for the loss of tax revenue caused by restrictions on tax increases for elderly and disabled homeowners, SB 2 allows school districts to request additional state funding if they encounter budget shortfalls.

The Fort Bend County real estate market is experiencing a significant transition period characterized by moderating prices, increasing inventory, and evolving buyer and seller behaviors. This summary analysis has examined the multifaceted factors influencing the local real estate landscape, from economic drivers to legislative changes, providing stakeholders with essential insights for navigating this dynamic market.