Homeowners across the country who have benefited from soaring home prices in recent years are now feeling the squeeze as their property taxes skyrocket. Property tax collections have jumped nearly 30% nationwide since 2019, despite a decline in average effective tax rates, according to new data from Redfin.
The report found that 48 of the 50 largest U.S. cities saw their monthly property tax bills increase, with the only exceptions being Las Vegas and Pittsburgh, where each increased by 4.3. % and remained at 1.7%.
“Even though the effective tax rate has declined, the total tax burden has increased because homeowners are actually paying more,” said Elijah de la Campa, senior economist at Redfin. said. “The average effective tax rate fell to 0.67% from 0.77% in 2019 as home prices rose faster than local tax rates. However, the average effective tax rate fell to 0.67% from 0.77% in 2019. However, for many homeowners, monthly payments is getting higher.”
Since 2019, the sharpest increase in property taxes has been seen in Indianapolis, with the median monthly tax bill jumping 66.7%. Similar increases were observed in Atlanta, Jacksonville, Tampa, and Miami, where taxes increased by at least 48.1% over the same period.
Redfin noted that property tax laws vary widely by jurisdiction, with idiosyncrasies that are not fully reflected in national data. Still, cities like Nassau County, Newark, and New Brunswick continue to report some of the highest property tax bills in the nation, while Phoenix, Nashville, Charlotte, Las Vegas, and Detroit have the lowest. .
Property taxes now account for 20% of the median home price in Austin, Texas, and similar percentages in Newark, San Antonio, and Houston. Redfin says that while higher monthly payments can put pressure on homeowners’ budgets, the revenue generated can support critical services like education and emergency services and ultimately increase property values in the long run. He emphasized that there is a gender.
Despite the relative attractiveness of states like Florida, Texas, and Arizona, rising home values and tax increases associated with population growth in Sunbelt regions are beginning to close the affordability gap. For homeowners, the choice between high-tax coastal metropolises and Sunbelt regions may increasingly depend on other factors, such as climate resilience and overall cost of living. This signals a shift to where Americans can find truly affordable homeownership.
