thatdude333 OP t1_jbyqnwf wrote on March 12, 2023 at 7:30 PM

Reply to comment by hiricinee in [OC] Ratio of Median Home Listing Price (Feb 2023) to Median Family Income (2022 Estimate) For 392 US Metropolitan Statistical Areas by thatdude333

Property taxes & state taxes definitely influence home affordability.

This isn't exactly apples-to-apples, but here are the county-level median property taxes paid for the top 20 and bottom 20 MSAs by Median Home Listing Price (Property tax data from https://taxfoundation.org/property-taxes-by-state-county-2022/)

Top 20 MSAs by Median Home Listing Price

Median Property Taxes Paid (2020) - Median Home Listing Price - MSA Name
$4.7k - $1,409.3k - Napa, CA
$7.6k - $1,399.5k - San Jose-Sunnyvale-Santa Clara, CA
$1.3k - $1,395k - Kahului-Wailuku-Lahaina, HI
$4.1k - $1,343.8k - Santa Maria-Santa Barbara, CA
$5.2k - $1,316.3k - Santa Cruz-Watsonville, CA
$3.9k - $1,241.3k - Salinas, CA
$7.3k - $1,008.8k - San Francisco-San Mateo-Redwood City, CA
$6.4k - $1,008.8k - Oakland-Berkeley-Livermore, CA
$4.9k - $973.5k - Anaheim-Santa Ana-Irvine, CA
$4.4k - $973.5k - Los Angeles-Long Beach-Glendale, CA
$7.8k - $963.5k - Bridgeport-Stamford-Norwalk, CT
$4.6k - $949.5k - Santa Rosa-Petaluma-, CA
$4.3k - $949k - San Luis Obispo-Paso Robles-, CA
$4.5k - $934.8k - Oxnard-Thousand Oaks-Ventura, CA
$4.4k - $932.5k - San Diego-Chula Vista-Carlsbad, CA
$4.5k - $889.5k - Ocean City, NJ
$2.6k - $881.3k - Naples-Marco Island, FL
$2.9k - $875k - Boulder, CO
$3.5k - $875k - Barnstable Town, MA
$3.8k - $799k - Boston, MA

Bottom 20 MSAs by Median Home Listing Price

Median Property Taxes Paid (2020) - Median Home Listing Price - MSA Name
$0.6k - $161.0k - Wheeling, WV-OH
$0.8k - $158.7k - Kokomo, IN
$0.6k - $155.0k - Beckley, WV
$2.9k - $154.7k - Elmira, NY
$3.5k - $154.4k - Rockford, IL
$1.1k - $153.0k - Terre Haute, IN
$2.3k - $151.6k - Youngstown-Warren-Boardman, PA
$0.9k - $149.5k - Muncie, IN
$0.8k - $145.0k - Charleston, WV
$1.3k - $144.9k - St. Joseph, KS
$0.6k - $139.8k - Pine Bluff, AR
$1.5k - $139.5k - Altoona, PA
$0.8k - $137.4k - Cumberland, WV
$1.8k - $131.2k - Saginaw, MI
$3.1k - $130.0k - Peoria, IL
$2.3k - $127.7k - Carbondale-Marion, IL
$2.3k - $117.2k - Decatur, IL
$1.0k - $112.2k - Weirton-Steubenville, OH
$1.5k - $102.4k - Danville, IL
$1.4k - $92.0k - Johnstown, PA

It would be interesting to add up median state income taxes paid and see how the total tax burden compares to high/low housing costs.

hiricinee t1_jbysdrk wrote on March 12, 2023 at 7:42 PM

As far as I can tell most localities basically leave money on the table with high tax rates. Raising property taxes decreases the price of the homes, which in turn results in a damper on revenue. You likely get a small bump in revenue with a rate increase in the short run followed by a decrease in the long run as the home prices stagnate.