💧 Can Low Water Levels Affect Your Property Value (and Taxes) in Texas?
Texas water levels are at historic lows. Waterfront and lakefront property values take a hit. Property taxes should be lower too then, right?
Updated: April 2025 | By Texas Tax Appeal
Waterfront properties in Texas are prized for their location — but what happens when that water starts to disappear?
With ongoing drought conditions and declining lake levels across parts of Texas, many homeowners and investors are asking the same question:
⛱️ “If my lake view is gone… should my property value (and taxes) go down too?”
Do water levels affect property values? Absolutely!
🌊 Drought & Dropping Water Levels Could Impact Property Values — And Your Tax Assessment
Across Texas, reservoirs like Canyon Lake, Medina Lake, and Lake Travis are experiencing historic low water levels due to ongoing drought, climate change, and rapid population growth. As of Spring 2025:
Canyon Lake is at 47% capacity, its lowest since it was created.
Medina Lake is at a shocking 2.1% full, down from a high of 4.7%.
Lake Travis is currently 41.8% full and continuing to drop.
These environmental changes can lead to reduced property values, especially for waterfront and lake-adjacent homes. Views, water access, and recreational potential are key drivers of valuation in lakefront communities. If your property no longer carries the same value due to water level changes or reduced appeal, this could be a compelling reason to protest your 2025 property tax assessment.
📌 Tip: Short-term rentals (STRs), vacation homes, and second properties near affected lakes may be especially vulnerable to over-assessment based on outdated or peak-condition valuations.
For more details, see:
📉 Do Low Water Levels = Lower Value?
In areas like Lake Travis, Canyon Lake, Lake LBJ, and parts of the Hill Country, water levels have dropped significantly. That means:
❌ No usable boat access
❌ Decreased recreational value
❌ Visual loss of waterfront appeal
❌Higher fire and insurance risk
❌ Fewer short-term rental bookings
If your property’s highest value was based on waterfront use or visibility, this environmental shift can absolutely impact your true market value.
🧾 So Can You Use This in a Property Tax Protest?
✅ Yes. And here’s how:
In Texas, counties must appraise property values as of January 1 of each tax year, based on market value.
If your property lost value due to:
⛔No water access or shoreline recession
⛔Erosion or increased damage risk
⛔Decreased rental income potential
…then you may have grounds for a successful appeal.
📝 What Kind of Evidence Helps?
If you plan to protest based on water-related issues, submit:
📷 Photos showing before/after shoreline changes
📉 Rental income reports or bookings (if STR)
🧾 Repair/erosion estimates tied to water issues
🧭 Maps or screenshots showing drought or lake drawdown
🧑🤝🧑 Comparisons with nearby homes with diminished access
🔻Lower sales prices since water levels receded
🔻 Top Texas Counties Affected by Low Water Levels
🏞️ County 🌊 Primary Water Body 📉 Status📎 County Guide
Comal County Canyon Lake ~47% full (record low since creation) 🔗 Comal County Guide
Medina County Medina Lake ~2.1% full (near dry) 🔗 Medina County Guide
Travis County Lake Travis ~41.8% full 🔗 Travis County Guide
Burnet County Lake Buchanan Significantly below normal 🔗 Burnet County Guide
Llano County Colorado River & Highland Lakes Drought-impacted flows 🔗 Llano County Guide
Hays County San Marcos River Reduced spring flow 🔗 Hays County Guide
Kendall County Guadalupe River Decreased flow, drought watch 🔗 Kendall County Guide
Bandera County Medina River Critically low flow 🔗 Bandera County Guide
Blanco County Blanco River Intermittent flow, major dry stretches 🔗 Blanco County Guide
San Saba County San Saba River Below seasonal norms 🔗 San Saba County Guide
💡 Pro Tip: Lakefront and river-adjacent properties are often appraised using peak market assumptions — even when water access is compromised. A property tax protest may be your best tool for correcting inflated values.
🔍 Real Example:
A homeowner near Canyon Lake had their waterfront home valued at $875,000 in 2024.
By 2025, the water line had receded over 200 feet. The dock was unusable. STR bookings dropped by 40%. They protested with documentation — and won a reduction to $755,000, saving over $2,600 in taxes.
📅 Don't Wait: Deadline to Protest Is May 15, 2025
Texas counties do not automatically adjust for environmental factors. If you don’t protest your value, you could end up overpaying by thousands. Sign Up Now!
🚀 We Can Help Protest Your Water-Affected Property
At Texas Tax Appeal, we’ve helped clients across waterfront areas like:
Lake Travis
Medina Lake
Lake Conroe
Possum Kingdom
Canyon Lake
…successfully reduce their taxable values due to water-level changes.
👉 No upfront fees. No risk. Only pay if we save you money.
🔗 Sign Up to Appeal Your 2025 Tax Value
📍 Want to check your local CAD’s stance?
Find Your County Appraisal District
💡 Key Takeaways
✅Texas is facing low water levels that may impact property values
✅You can protest based on these environmental factors
✅Evidence matters: photos, rental loss, erosion, access
✅The May 15 protest deadline is approaching fast