Rising property taxes price some out of market

Beverly Smith has lived in the same house in Flemington, N.J., for 48 years. It's not such a quiet neighborhood anymore.

"Not at all," she says. "It used to be a dirt road, and you saw very few cars going by."

But now she says she's being penalized for staying put. As new developments sprout, the value of her three-acre property has outgrown her modest income. Her property tax payment has grown by 42 percent over the last decade.

"I can't afford the things that are being afforded around me," she says. "Even the deer are leaving."

The average American home now costs $191,000, up 12 percent in the last two years. Property taxes are also going up, rising by an average of 10 percent since 2001.

During the economic boom in the 1990s, state governments piled up surpluses, but now they're strapped for cash and have less money to pass on to local governments. So localities are forced to spend more of their own money on police, fire departments and schools.

"We're still on pretty tight strings, so we're continuing to make efforts to provide services with the limited funds that are available," says Bert Waisanen with the National Conference of State Legislatures.

Several states facing budget deficits are considering cutting back or freezing property tax relief programs, such as Wisconsin, with a $32 million deficit; Colorado, with a $148 million shortfall; and New Jersey, which is $4 billion in the red.           

Groups representing older homeowners on fixed incomes are fighting to preserve the tax breaks.

For Subscribers

FOR SUBSCRIBERSCBP leaders cut out of Trump ad buy decision

FOR SUBSCRIBERSAmerican passenger drafted goodbye texts to her family as Flydubai plane plummeted

FOR SUBSCRIBERSCornell rape allegation pushes embattled New York prosecutor into national spotlight

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

For Subscribers

FOR SUBSCRIBERSCBP leaders cut out of Trump ad buy decision

FOR SUBSCRIBERSAmerican passenger drafted goodbye texts to her family as Flydubai plane plummeted

FOR SUBSCRIBERSCornell rape allegation pushes embattled New York prosecutor into national spotlight

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

But economics professor William Fischel says the policy can create an unfair burden.

"Giving them a break on their taxes doesn't mean they get more money from the state," says Fischel, who teaches at Dartmouth College in New Hampshire. "It means that people in the rest of the community have to pay more for their own taxes."

Beverly Smith says her high property taxes are one reason she's now preparing to move.

"Hopefully I won't cry," she says.

She's just one of many Americans facing a taxing burden on their greatest asset — their homes.