MarketMoodz
Property tax burden climbs as home values dip in 2025
ATTOM data, cited by Fox Business, show the national effective property tax rate for single-family homes rose to 0.9% in 2025 from 0.86% in 2024—the highest since 2020's 1.1%. At the same time, estimated values fell 1.7% year over year, yet tax bills rose due to local costs and policy changes. The pattern underscores regional disparities: the Northeast carries a heavier burden than the West.
Key Takeaways
- National effective property tax rate for single-family homes rose to 0.9% in 2025, up from 0.86% in 2024.
- Estimated value for a single-family home fell 1.7% year over year in 2025, yet tax bills rose due to local costs and policy changes.
- States with the highest effective tax rates include New Jersey (1.58%), Vermont (1.40%), Connecticut (1.36%), New Hampshire (1.29%), and New York (1.23%).
- ATTOM CEO Rob Barber notes taxes reflect more than housing values, driven by local government costs and policy shifts.
People Involved
- Rob Barber ATTOM CEO
Entities Involved
- ATTOM Property data company
- Fox Business News outlet citing ATTOM data
MarketMoodz Analysis
For homeowners and investors, rising tax bills increase monthly housing costs and operating expenses for rental portfolios. Even with falling home values, higher bills escalate mortgage affordability pressures and cash-flow considerations for real estate bets, especially in high-tax markets.
Historically, property taxes hinge on more than property values—local government costs, school budgets, and policy shifts drive the bills. Today's rate of 0.9% sits below the 2020 peak of 1.1% but above 2024's 0.86%, signaling a policy-driven headwind for taxpayers.
What to watch next: reassessment cycles, mill-rate adjustments, and legislative changes that could shift tax burdens. Investors should model tax overlays when evaluating cap rates and factor in appeals processes in high-burden states.
Source: Original Article
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