According to Palm Beach Daily News, Palm Beach real estate remains strong—but the days of double-digit value jumps may be behind us, at least for now. According to preliminary 2025 estimates from the Palm Beach County Property Appraiser’s Office, the town’s total market value rose by 2.56% over the past year, reaching approximately $56.08 billion.
That represents a $1.39 billion increase over last year and continues a multi-year trend of growth. However, it also marks a clear slowdown compared to the unprecedented increases we’ve seen since 2020.
A Shift Toward Normalcy
Over the past few years, Palm Beach property values soared at an extraordinary pace—driven in large part by the pandemic-era surge in high-end homebuying. In contrast, this year’s more modest increase reflects a normalization of the local market.
Consider these recent jumps in total estimated values:
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2022: +46%
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2023: +21%
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2024: +10.6%
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2025 (preliminary): +2.56%
This shift is not necessarily a sign of weakness. Instead, it may signal a healthy recalibration—especially in a market that saw record-breaking demand and pricing over a relatively short period.
What’s Behind the Numbers?
The county’s property appraiser assigns values each year based on market conditions as of January 1. These values determine how much property owners will owe in taxes once local municipalities finalize their rates.
In Palm Beach:
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The residential sector continues to dominate the local market.
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Residential real estate now totals $49.14 billion in estimated market value, up slightly from $48.77 billion last year.
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This category includes single-family homes, condos, co-ops, and multi-family buildings (but not vacant residential lots).
Meanwhile, commercial property values in the town experienced a much more noticeable bump:
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Up from $3.198 billion last year to $4.331 billion this year.
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That’s a significant gain, especially given the town’s relatively limited commercial footprint.
New Construction: Down in Town, Up Countywide
Palm Beach saw $158.7 million in new construction completed by the January 1 deadline—down from $200 million the year prior. While still a meaningful figure, it contrasts with the broader trend across Palm Beach County, where new construction activity continued to rise.
This might suggest a slight slowdown in development activity within the town itself, potentially due to limited land availability, construction costs, or permitting constraints.
Countywide Trends: Slower Growth Everywhere
Palm Beach’s 2.56% market value increase is generally in line with the countywide trend. Across all cities, towns, and villages in Palm Beach County, estimated property values rose by 2.68%, from $514 billion to $528.8 billion.
By comparison:
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Last year’s countywide increase was 5.65%
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The total gain this year equals $14.8 billion
In short, Palm Beach isn’t alone in seeing a softening pace—this appears to be a regional trend.
What About Taxable Values?
It’s important to understand the difference between market value and taxable value. Tax bills aren’t calculated on the full market value of a property. Instead, they’re based on taxable value, which considers exemptions and caps.
Here’s how it works:
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Homesteaded properties (primary residences) are capped at a 3% annual increase in taxable value.
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Non-homesteaded properties (including second homes or investment properties) are subject to a 10% cap.
This year, Palm Beach’s estimated taxable value rose by 7.5%, from $32.15 billion to $34.57 billion. These figures could shift slightly by fall, when the tax rates are finalized and the rolls are certified.
Palm Beach currently has the second-highest taxable value in the county, trailing only Boca Raton. However, it’s worth noting that Boca Raton is significantly larger in both population and land area.
Timeline for 2025 Tax Bills
There are several key dates to keep in mind if you’re a Palm Beach property owner:
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Mid-August – Property owners will receive estimated tax bills in the mail.
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September – Two public hearings (tentatively scheduled for Sept. 11 and Sept. 19) will finalize the town’s budget and tax rate.
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November 1 – Finalized tax bills must be mailed out, per state law.
What This Means for Homeowners and Buyers
Palm Beach’s real estate market may not be seeing the same meteoric rises as in recent years—but the fundamentals remain strong. Demand is steady, inventory remains limited, and both residential and commercial properties continue to appreciate.
Here’s how it may affect you:
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Homeowners: Your home is still gaining value, though more gradually. Expect slightly higher taxes if your exemption doesn’t fully shield you.
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Buyers: With the market leveling off, there may be more opportunity for negotiation—especially as some sellers adjust to slower growth.
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Investors: The strong taxable base and continued upward trend make Palm Beach a solid long-term play, especially in commercial and multifamily sectors.
Source: palmbeachdailynews.com
