(NEXSTAR) – Owners of just about 87 million single household properties within the U.S. forked over $328 billion in efficient property taxes throughout 2021, up 1.6% from 2020, in response to a brand new research.
While the full tax burden might sound giant, the p.c improve wasn’t, in response to ATTOM, an actual property knowledge firm. In reality, it was the second smallest improve over the previous 5 years – from 2019 to 2020, for instance, the rise was 5.4%.
ATTOM calculated the efficient tax fee in states and main U.S. metros by taking the typical annual property tax as a share of the “average estimated market value of homes in each geographic area.”
Considering how a lot property values skyrocketed through the pandemic, consultants warn that taxes might quickly comply with behind.
“It’s hardly a surprise that property taxes increased in 2021, a year when home prices across the country rose by 16%,” mentioned Rick Sharga, government vice chairman of market intelligence at ATTOM. “In fact, the real surprise is that the tax increases weren’t higher, which suggests that tax assessments are lagging behind rising property values, and will likely continue to go up in 2022.”
In some main metros, nonetheless, the tax fee jumped up considerably. Among these areas with at the least 1 million individuals, Nashville, Tennessee noticed the most important bounce final 12 months (27%), adopted by Milwaukee, Wisconsin (18.6%); Baltimore, Maryland (12.3%); Grand Rapids, Michigan (12.3%); and Louisville, Kentucky (11%).
The efficient fee went down in some locations, with these metros main the rankings: Pittsburgh, Pennsylvania (-35.1%); New Orleans, Louisiana (-20.2%); Houston, Texas (-18.7%); Dallas, Texas (-12.2%); and Austin, Texas (-7.7%).
The evaluation additionally seemed on the highest efficient property tax fee by state:
- Illinois (1.86%)
- New Jersey (1.73%)
- Connecticut (1.67%)
- Vermont (1.55%)
- Pennsylvania (1.37%)
- Nebraska (1.36%)
- New Hampshire (1.35%)
- New York (1.35%)
- Texas (1.31%)
- Iowa (1.31%)
The lowest efficient property tax charges in 2021 had been present in :
- Hawaii (.27%)
- Alabama (.37%)
- Utah (.39%)
- Arizona (.41%)
- Nevada (.41%)
- Idaho (.43%)
- Colorado (.43%)
- Tennessee (.45%)
- West Virginia (.5%)
- South Carolina (.5%)
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Meanwhile, the typical worth of a house within the U.S. continues to climb with the median value leaping 15% to $375,300 in March from a 12 months in the past, an all time excessive in response to the National Association of Realtors.