Downtown LA condo prices fell. Did your property tax?

By HiHolt · October 2026 · Sales data as of September 15, 2026

Short answer: not automatically. At two Downtown Los Angeles condo towers, 877 S. Francisco St. and 889 Francisco St., price levels in 2025 were about 29% and 34% below 2018, adjusted for floor, layout, size and new-unit premium. But a California property tax bill follows the assessed value, which Proposition 13 ties to what the owner paid, not to today's prices. If your condo was worth less on January 1, 2026 than its assessed value, you can ask Los Angeles County for a temporary Proposition 8 "decline-in-value" reduction between July 2 and November 30, 2026, and the Assessor's review is free.

What happened to prices at 877 and 889 Francisco

877 S. Francisco St. and 889 Francisco St. are condo towers in Downtown Los Angeles (ZIP 90017), both listed by the County Assessor as built in 2017. Together they have 822 units and 640 recorded sales through March 2026, enough to measure prices one building at a time.

2018 is the highest yearly price level in our data for both buildings. The few sales recorded so far in 2026 also came in lower, but they are too few to measure this year's change reliably. These are two buildings, not the whole Downtown market; other towers may differ.

A check that needs no model. Between January 2023 and May 2026, 57 units in the two buildings resold with a transfer-tax sale price on record. Of those, 55 sold for less than the first recorded owner had paid, and the median resale was 27% below that first price. Two cautions. First, those 57 units are about 7% of the 822, and they are simply the ones that happened to sell. Second, in a new building the first recorded sale of a unit is typically the developer's sale, and new units tend to sell at a premium; our model puts that premium at about 7% at 877 and about 2% at 889. With the premium taken out, 52 of the 57 still sold for less.

How we measured this. Source: sales recorded with Los Angeles County, from the County Assessor's public parcel and sales-history records (prices as reported through the documentary transfer tax). We kept single-unit sales coded as regular transfers with a usable price and unit size. For each building, a regression of price per square foot estimates one price level per calendar year, holding floor, layout and size constant and allowing for the first-sale premium. Accuracy was checked by predicting each sale with that sale left out. Sales through March 31, 2026; data compiled September 15, 2026.

Why your tax bill may not follow

California taxes real estate on its assessed value, not its current market price. Under Proposition 13, your assessed value starts at the market value when you bought (your "base year value"). After that it can rise each year by 2% or by California inflation, whichever is lower. The basic tax rate is 1% of assessed value, plus voter-approved bonds.

Falling prices do not change that formula. If you bought at 877 or 889 between 2018 and 2022, your starting value reflects prices above 2025 levels by our measure, and it may have risen by up to 2% a year since. It comes down only if the Assessor finds that your property's market value on January 1 was below its Proposition 13 value.

What a Prop 8 decline-in-value review is

California voters approved Proposition 8 in November 1978. It allows a temporary reduction when a property's market value on the January 1 lien date is lower than its Proposition 13 value (the "factored base year value"). The Assessor then enrolls the lower of the two.

• Who qualifies: any owner whose property was worth less on January 1, 2026 than its assessed value, typically someone who bought when prices were higher.
• It is temporary: the Assessor reviews the value every year. As the market recovers, the assessed value can rise by more than 2% a year, but never above your Proposition 13 value.
• 2026 filing windows in Los Angeles County:
• Assessor's Decline-in-Value Review (Form RP-87): July 2 to November 30, 2026. Free. Owners can file online.
• Assessment Appeals Board, Application for Changed Assessment (Form AAB-100): July 2 to November 30, 2026. $46 non-refundable filing fee; a fee waiver can be requested for financial hardship. The Assessor's form notes that you can file an appeal without waiting for the Assessor's answer.
• You can do it yourself. You do not need a company. Start at the Assessor's Decline-in-Value page (assessor.lacounty.gov/tax-relief/decline-in-value) or the Assessment Appeals Board site (lacaab.lacounty.gov).
• Keep paying your tax bill. Taxes are still due on time while an appeal is pending. If a reduction is granted, you receive a refund with interest.

How HiHolt works and what it costs

This section describes our own paid service.

HiHolt prepares and files Proposition 8 decline-in-value reviews for California condo owners. HiHolt is a brand of Fortunewoods LLC, a private company, not a government agency.

1. Enter your address at hiholt.com. Downtown Los Angeles condos are checked online right away; other California condos on request. We compare the County's assessed value, which is public record, with our estimate of market value from recorded sales.
2. If your unit looks over-assessed and you want us to go ahead, you sign a written authorization online. Nothing is filed without it.
3. We prepare the evidence and file the Assessor review for you. When it helps your case, we also file the appeals board application and attend the hearing.

What it costs: 30% of the property tax you actually save for that year. If your tax doesn't go down, you pay nothing. Nothing is charged before we file, and we pay Los Angeles County's $46 appeal filing fee. Our estimate can be wrong, and the Assessor or the appeals board makes the decision, so no one can promise a reduction. HiHolt's filings are made under Los Angeles County Tax Agent Registration Number AG00000-1565.

FAQ

Why did my property tax go up when my condo lost value? Under Proposition 13, your assessed value can rise each year by up to 2% (or by California inflation, if lower), whatever the market does. It drops only if the Assessor enrolls a lower Proposition 8 market value as of January 1.

How do I lower my property tax in Los Angeles County if my condo's value dropped? File a Decline-in-Value Review with the Assessor (Form RP-87, free) or an Application for Changed Assessment with the Assessment Appeals Board ($46). Include sales of similar units close to January 1, 2026; the Assessor's form accepts sales through March 31, 2026.

What is the 2026 deadline for a decline-in-value review in LA County? November 30, 2026, for both. The Assessor's form says mailed applications are valid if postmarked by that date.

Do I have to hire someone to file a Prop 8 appeal? No. The Assessor's informal review costs nothing, and you can file an appeals board application on your own behalf. Companies such as HiHolt charge a fee to prepare and file for you.

Is a Prop 8 reduction permanent? No. The Assessor reviews it every year. As prices recover, your assessed value can climb back faster than 2% a year, but never above your Proposition 13 value.

How much tax would a reduction save? Every $100,000 cut from your assessed value lowers the 1% basic tax by $1,000 a year. Voter-approved bond rates, which vary by area, add to that.

Required notice

This service is not associated with any government agency. An informal assessment review by the Assessor is free of charge, and you can file an Application for Changed Assessment with the Assessment Appeals Board on your own behalf. The appeals board also has the authority to raise property values, but in no case higher than the Proposition 13 protected value.

Data as of September 15, 2026 (Los Angeles County recorded sales from the County Assessor's public parcel and sales-history records; latest recorded sale at these two buildings: July 1, 2026; the price model uses sales through March 31, 2026). County and state sources checked October 13, 2026.

Sources:

• County of Los Angeles newsroom, Assessor's office release "Decline-in-Value Review Forms Available Now" (July 30, 2026): lacounty.gov
• Los Angeles County Assessor, Decline-in-Value page: assessor.lacounty.gov
• Los Angeles County Assessor, 2026 Decline-in-Value Review Application, Form RP-87 (REV. 7/26), linked from the July 30, 2026 notice above
• Los Angeles County Assessor, online Decline-in-Value filing: assessor.co.la.ca.us
• Los Angeles County Assessment Appeals Board, filing periods and $46 fee: bos.lacounty.gov and lacaab.lacounty.gov
• California State Board of Equalization, "Decline in Value – Proposition 8": boe.ca.gov
• California State Board of Equalization, Assessment Appeals FAQs: boe.ca.gov
• California Business and Professions Code section 17537.9: leginfo.legislature.ca.gov