DOUGLAS COUNTY – Over the past 20 years, the average sales price for lakefront homes in Douglas County has increased from around $284,800 (in 2004) to about $590,000 (in 2024) – about 51.7%.
Information from the Douglas County Assessor’s office shows that there have been approximately 86 lakefront sales since October 2023 with an average sales price of $572,900.
The current sales study schedule is from October 1, 2023, to September 30, 2024, according to Douglas County Assessor Stacy Honkomp. She added that the sales data provided represents good sales that the state is closely monitoring.
The average sales price was $314,300 in 2010 and $423,000 in 2020, Honkomp said.
According to Honkomp, factors that could lead to price increases include the following:
- After Covid, companies switched to a work-from-home option, and many people still have that option. Travel times and long commutes meant more people were able to live outside of a major city. The appraiser’s office saw more sales during this time. Many lake house residents who used to come in on weekends were now able to move to the lake full-time and not have to bear the added expense of a second home.
- Low interest rates played a crucial role in this and when news of interest rate hikes spread, there was a rush for people to secure a favorable interest rate for the purchase.
- Small number of houses for sale.
As for how much property taxes on lake homes have increased over the years, Honkomp said not all lakes in the county have seen large increases. She said each county sets its own tax, which can mean a different tax rate depending on where you live. She cited two homes as an example — one on Lake Carlos and one on Lake L’Homme Dieu.
House on Lake Carlos: Taxes in 2000 were $3,360 while taxes for 2024 are $7,490. The market value of the house in 2000 was $219,000 while the same house in 2024 was valued at $1.04 million.
House on Lake L’Homme Dieu: Taxes in 2000 were $5,100 and 2024 taxes are $8,870. The market value of the house in 2000 was $355,000 while the same house in 2024 was valued at $1.204 million.
“You’ll find that taxes haven’t increased as much as real estate, as value has increased due to market appreciation and new construction,” Honkomp said. “These factors increase the value of a jurisdiction, which is reflected in the tax rates.”
Honkomp also discussed the number of homes in the Douglas County area that have been converted into vacation rentals or owner-occupied vacation homes (commonly known as VRBOs).
She said the assessor’s office is working closely with Horizon Public Health and Douglas County Land and Resource Management to track these properties.
According to Honkomp, there are currently 184 short-term rental properties in Douglas County by 2024. Most, she added, are lakefront properties, but not all.
Celeste Edenloff is a special projects editor and reporter for the Alexandria Echo Press. She has lived in the Alexandria Lakes Area since 1997. She first worked as a reporter for the Echo Press from 1999 to 2011 and returned in 2016 to once again cover the community she calls home.
