Property values across Dakota County continued to climb in the latest annual assessment, though increases were smaller than in recent years, according to a market value update presented to the Dakota County Board of Commissioners on March 3.
Scott Lyons, director of Dakota County Assessing Services, told commissioners the county’s property market remains stable overall, with modest changes across most sectors. The new values will be used to calculate property taxes payable in 2027.
Countywide estimated market value reached $80.89 billion, up about 3 percent from last year. Taxable market value increased 3.11 percent to $78.73 billion, while total tax capacity rose 3.58 percent to $925.19 million.
Lyons explained that state law requires assessors to estimate property values annually based on open-market conditions.
“Assessors are required to estimate market value every year,” Lyons said. “The market value is the price that would prevail under competitive open market conditions.”
For homeowners in Hastings and other Dakota County communities, the overall trend points to smaller changes in residential property values than residents have seen in recent years.
Countywide, the median homestead value increased 1.01 percent, bringing the typical home value to $392,100.
Lyons said the vast majority of residential properties across the county fell within a relatively narrow range of changes.
About 84 percent of homes saw values shift between a 2 percent decrease and a 5 percent increase.
While the presentation did not single out Hastings specifically, Lyons noted that most larger cities in Dakota County saw modest changes within that range. Eagan experienced a median decline of 2.8 percent while Apple Valley recorded a 2.64 percent increase.
That means Hastings homeowners will likely see changes similar to the broader county trend—generally small increases or decreases rather than the larger jumps seen earlier in the decade.
Residential property continues to represent the largest portion of Dakota County’s tax base. Lyons said homes account for 63.9 percent of the county’s total tax capacity, though that share declined slightly this year as commercial and industrial values grew.
“This year there was a small reduction of about a half percent off residential, typically shifting to commercial and industrial,” Lyons said.
One factor affecting property taxes countywide is new development.
Nearly $993 million in new construction was added during the latest assessment cycle, contributing roughly $13 million in new tax capacity.
Residential construction accounted for about $572 million of that growth and added more than 1,400 housing units across Dakota County.
Lyons said new construction helps distribute the property tax burden among more taxpayers.
“Adding new properties, new construction, that spreads the tax base out for all taxpayers,” he said.
Commercial and industrial development also contributed significantly to the county’s growth.
Those sectors saw median value increases above 4 percent and about $225 million in new construction, more than double the amount added the previous year.
Major projects contributing to that growth include the Meta data center in Rosemount, which Lyons said is about 60 percent complete, and the Amazon fulfillment center in Eagan, currently about 30 percent finished.
Agricultural land values increased about 6.5 percent, though taxable agricultural values rose a smaller 2.04 percent because those figures are set by the Minnesota Department of Revenue.
Apartment property values remained stable, with no median change countywide after a slight decrease the year before.
Dakota County property owners will soon receive official notices of their new assessed values.
More than 171,000 value notices will be sent beginning March 11, with about 18 percent delivered electronically, an increase from last year.
Each notice includes information about how property owners can question or appeal their valuation.
Dakota County uses what Lyons described as an “open book” process, encouraging residents to review property data online and contact the assessor’s office if they believe their value may be inaccurate.
“If they have questions for us or want to appeal their value, they can go through the portal and attach documents for us,” Lyons said.
Last year the county received 668 appeals, with about 35 percent submitted through the online portal.
Residents who still wish to challenge their value can attend the Dakota County Board of Appeal and Equalization on June 8.
Commissioner Bill Droste noted that the modest increase in residential values may come as relief for homeowners following several years of sharper growth.
“The 1.01 percent residential increase… that’s a good number for residents,” Droste said, noting that values in previous years had climbed closer to three or four percent annually.
For Hastings homeowners, the assessment update signals a more stable housing market heading into the 2027 property tax cycle—though final tax bills will ultimately depend on local government budgets and tax levies set later this year.