Higher property taxes could further erode housing affordability

Taxes are just now beginning to catch up with soaring home values. In normal times, as a home appreciates in value, its property taxes follow in short order. But these are not normal times: Given the breakneck speed with which the housing market has taken off the last few years, property tax increases could hardly keep up – until now. In 2023, the small reprieve of relatively lower effective property tax rates will end and could yield a measure of sticker shock – especially for recent homebuyers. Researchers at Today’s Homeowner analyzed housing data across 585 cities spread across the country to track the corresponding rise in property taxes as it relates to skyrocketing home values – soaring valuations spurred by the lack of available houses for sale. The results don’t paint a pretty picture. According to the findings, the average property tax bill incre