**The $3 Trillion Hidden Tax on Homeownership**.
Over the past 10 years, the average home price in the United States has increased by over 50%, while wages have only increased by about 10%. This has made it increasingly difficult for people to afford to buy a home, especially in major metropolitan areas..
One of the hidden costs of homeownership is the property tax. Property taxes are levied by local governments and are used to fund public schools, libraries, parks, and other local services. The amount of property tax you pay is based on the value of your home, so as home prices have increased, so too have property taxes..
In 2018, the average homeowner paid over $2,500 in property taxes. This may not seem like a lot of money, but it can be a significant burden for people who are struggling to make ends meet. In fact, a recent study by the National Association of Realtors found that property taxes are now the second-largest expense for homeowners, after mortgage payments..
The high cost of property taxes is a major barrier to homeownership for many people. In some cases, it can make it impossible for people to afford to buy a home. For example, a recent study by the Center on Budget and Policy Priorities found that in San Francisco, the average property tax bill is over $10,000 per year. This means that a family with a median income of $80,000 would have to spend over 12% of their income on property taxes..
The high cost of property taxes is also a burden for homeowners who are already struggling to make ends meet. In some cases, it can lead to foreclosure. For example, a recent study by the National Consumer Law Center found that property taxes are a major factor in over half of all foreclosures..
The high cost of property taxes is a serious problem that needs to be addressed. There are a number of things that can be done to reduce the burden of property taxes on homeowners, such as increasing the homestead exemption, providing tax breaks for first-time homebuyers, and reforming the way that property taxes are assessed..
**Here are some specific steps that can be taken to reduce the burden of property taxes on homeowners:**.
* **Increase the homestead exemption.** The homestead exemption is a tax break that allows homeowners to deduct a certain amount of money from the value of their home when calculating their property taxes. This can save homeowners a significant amount of money, especially in areas where home prices are high..
* **Provide tax breaks for first-time homebuyers.** First-time homebuyers often face a number of financial challenges, such as saving for a down payment and closing costs. Providing tax breaks for first-time homebuyers can help to make homeownership more affordable..
* **Reform the way that property taxes are assessed.** The current system of property tax assessment is often unfair and inaccurate. This can lead to homeowners paying more in property taxes than they should. Reforming the way that property taxes are assessed can help to ensure that homeowners are paying their fair share of taxes..
Reducing the burden of property taxes on homeowners is an important step towards making homeownership more affordable. By taking these steps, we can help to ensure that more people have the opportunity to own a home..
