Miami became one of the hottest destinations in the country after the COVID-19 pandemic began, and homeowners have reaped the benefit in the form of ballooning home equity. But homeowners in the area are also facing a serious unintended consequence of that — skyrocketing property taxes.
According to a new report from CoreLogic, median property tax payments in Miami-Dade County have risen 56.8% since 2019, and they’ve jumped 56.8% in neighboring Broward County. Home-price appreciation over that period has been 58.9% and 59.9%, respectively.
Even in the last year, taxes have exploded for South Florida residents, as Broward experienced an 11.4% year-over-year jump in median property taxes and Miami-Dade’s rose by 9.9%.
It’s not just Miami. Dallas-Fort Worth, the Seattle metro area and Southern California are all suffering from rapidly rising tax bills, putting a damper on homeowners who might otherwise be bragging about their new Zestimates.
The rapid rise in home valuations since the pandemic and stubbornly high mortgage rates have exacerbated the housing affordability crisis that began after the financial crisis. Rising property taxes add yet another layer to it and shut out buyers who might otherwise be able to afford a mortgage.
At the state level, Colorado tops the list with a massive 52.9% rise in median property taxes since 2019, followed by Georgia (51.5%), Florida (47.5%), Indiana (44.8%) and Alabama (44.4%).
Some states aren’t feeling the pinch though. Delaware (7.4%), Idaho (3.7%) and Arizona (5.9%) have risen only modestly since 2019. Arizona’s slight rise comes even as Maricopa County has experienced a 15.4% jump since 2019.
Two states actually saw their property taxes decline between 2019 and now. Michigan experienced an 8.1% drop, while Vermont’s tanked by 22.1%.
