Property taxes have surged 30% since 2019, and homeowners shouldn't expect relief anytime soon, according to a new LendingTree study that found a 5.1% increase across every major U.S. metro area between 2023 and 2024.  

In 2024, the median property tax burden was $3,119 for all homeowners. But for those paying a mortgage, it was $3,489 annually; homes without a mortgage paid $2,576.

The increase worked out to $150 in dollar terms. The last time LendingTree did this study, it found property taxes rose 10.4% between 2021 and 2023.

It also cited data from Institute on Taxation for the five-year period between 2019 and 2024 showing property taxes increasing 30% during this time frame, which was attributed to the pandemic-era housing boom which drove values higher.

This data is similar to a recent report from Attom for 2024, which found a 5.3% gain in 2024. The Attom report had 2025 information, which found the pace slowed to 3.7%.

Why mortgage borrowers might have higher property taxes

The gap in property tax payments between those who hold a mortgage and those without such a lien might be attributed to several factors, including where each group is situated, said Matt Schulz, LendingTree chief consumer finance analyst. Those paying off a loan are more likely to be people who purchased at an elevated price; the result is a higher property assessment for tax purposes.

The data reported 56.1% of mortgage borrowers paid more than $3,000 in annual property taxes in 2024, compared with 43.8% of those who are loan free.

At the other end of the spectrum, 17.7% of households without a mortgage paid under $800 in annual property taxes, versus 7.5% who have this form of lien on their home.

Escrow account requirements for borrowers may also be a factor. If the tax bill increases, the tax and insurance portion of the monthly mortgage payment changes. This makes the tax payments more visible and felt more directly than for a homeowner without a mortgage who pays on their own schedule, LendingTree said.

Having property taxes included in their monthly payment "can leave some homeowners struggling with payment increases they weren't expecting, which raises the risk of missed payments and delinquencies," Schulz said in an emailed comment. "For mortgage servicers, it also means more work managing escrow shortages and helping borrowers adjust to higher monthly bills."

On the origination side, rising property taxes can make expensive housing markets even tougher for potential buyers to afford, he said.

Which markets have the highest property taxes?

The report said the New York-Newark-Jersey City metro area has median property taxes over $10,000. LendingTree used 2024 American Community Survey data in creating its rankings and this is capped at $10,000 meaning New York could not be precisely ranked.

However, New York City proper has lower property tax rates than its neighboring counties, primarily because it relies on income taxes to raise revenue.

The next two metro areas were in California: San Jose, $9,901, and its Bay Area counterpart San Francisco, $8,522. Los Angeles and San Diego were also on the list. The only other state with multiple metros in the top 10 was Texas, with Austin, ranked fourth, and Dallas.

Home values are not reason why the Texas cities were on the list, Schulz said, pointing out properties cost less in those areas than on either coast. But they have property tax rates which can be double or more than those coastal locales.

In California, property tax rate increases are limited by Proposition 13.

For last year, property taxes likely continued to rise in many parts of the country, Schulz said.

"Local governments are still dealing with higher costs for schools and other services, while many homeowners are still being taxed based on elevated home values from the post-pandemic housing boom," he explained in the emailed comment. "In some markets, slower home-price growth may help ease the pace of tax increases, but in the near term, most homeowners probably shouldn't expect meaningful relief."

He added U.S. Census data for 2025 property taxes is scheduled for release in September.

Do renters feel squeezed by the housing market?

Meanwhile, a survey from Lombardo Homes of over 1,000 people found that nine of 10 renters felt they were trapped between increases in both rents and home prices.

A similar number, 93%, are worried that waiting to buy a home would make it less affordable, while 84% responded yes to the statement "does buying a home feel impossible in today's economy."

When it comes to the consequences of having to wait to buy a home, 77% said higher home prices over time; 72% said rising rent; 59% worried about rising interest rates; and 54% felt they were missing out on the opportunity to build equity. At No. 6 on the list was missing out on the tax benefits associated with homeownership, cited by 24%.

Affordability continues to improve, but rising rates have an affect

First American Data & Analytics March Real House Price Index report released on May 27 found for the sixth consecutive month affordability improved annually, this time by 7.6%.

But rising mortgage rates in March, April and now May, is cutting into those gains, although rates today are still below where they were one year ago. This is why May was 1% less affordable as measured by changes in the RHPI.

"While improving affordability and rising inventory are beginning to bring some buyers back into the market, higher borrowing costs continue to constrain purchasing power and limit how quickly conditions can improve," Mark Fleming, chief economist at First American said in a press release. "Affordability is moving in the right direction nationally — just more slowly, and less evenly, than many expected only a few months ago."