Property taxes climbed across all 50 of the nation's largest metropolitan areas between 2023 and 2024, adding another affordability challenge for borrowers already grappling with elevated mortgage rates, insurance costs, and home prices.
According to a new LendingTree analysis, the median annual property tax bill nationwide reached $3,119 in 2024, up 5.1%, or roughly $150, from the previous year. That translates to about $260 per month in housing costs before homeowners account for mortgage principal, interest, insurance, or HOA fees.
For mortgage professionals, the report highlights a growing reality in today's purchase market: affordability challenges increasingly extend beyond interest rates. Property taxes, insurance premiums, and other escrow-related expenses are consuming a larger share of borrowers' monthly housing budgets and can influence debt-to-income ratios and qualification outcomes.
The burden appears particularly pronounced among homeowners who still carry a mortgage. According to LendingTree, homeowners with mortgages paid a median $3,489 in annual property taxes in 2024, compared to $2,576 for homeowners without a mortgage — a difference of $913 per year.
"Property taxes are one of those costs that homeowners can't really shop around for, and that can make these increases especially frustrating," said Matt Schulz, LendingTree's chief consumer finance analyst.
"So many other costs of homeownership are sky-high, so even a relatively modest tax hike can stretch a household budget pretty thin," Schulz said. "In many cases, people may feel house-rich but cash-poor, especially in markets where home values have climbed far faster than incomes."
Tax Bills Rise Everywhere
Unlike many housing metrics that vary significantly by market, property taxes increased in every one of the 50 largest U.S. metros between 2023 and 2024.
The largest increases were seen in:
- Tampa: 7.7%
- Denver: 7.4%
- Miami: 7.1%
The smallest increases occurred in:
- Milwaukee: 0.7%
- Phoenix: 1.0%
- Memphis: 1.1%
Markets with rapidly rising taxes can create additional payment pressure for both existing homeowners and prospective buyers, particularly when tax increases are reflected in escrow payments.
Where Property Taxes Are Highest
The report also found significant variation in property tax burdens across major metropolitan areas.
The highest median annual property tax bills were recorded in:
- New York City: More than $10,000
- San Jose: $9,901
- San Francisco: $8,522
Among the 10 highest-tax metros, four were located in California, and two were in Texas.
Meanwhile, the lowest median annual property tax bills were found in:
- Birmingham: $1,156
- Memphis: $1,877
- Phoenix: $1,947
When measured as a percentage of home value, Phoenix homeowners paid the lowest effective property tax rate at 0.44%, followed by Las Vegas and Birmingham at 0.48%.
The highest effective property tax rates were found in Buffalo at 2.0%, Chicago at 1.98%, and Cleveland at 1.67%.
What It Means
While mortgage rates remain the primary affordability metric for many borrowers, LendingTree data underscores the growing role of taxes and other housing costs in determining a borrower's total monthly payment.
For LOs, that means qualification conversations increasingly extend beyond rate quotes and loan products. Rising property taxes can affect debt-to-income calculations, monthly payment estimates, and borrower purchasing power — particularly for first-time buyers and households already operating near qualification limits.
*This article was primarily written by a human author. AI tools were used in a limited capacity for research assistance or light editing.
