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Lancaster is the #1 metro with the fastest-growing property taxes in America

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July 25, 2022
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Lancaster is the #1 metro with the fastest-growing property taxes in America

Homeowners in certain parts of New Jersey, Illinois, and New Hampshire probably already know that they pay the highest tax rates in the U.S. But it was mostly metro areas in southern states that saw the highest growth in property tax rates since last year.

Using analysis from real estate data platform ATTOM Data, Agent Advice examined the average property tax in more than 100 major metropolitan areas across the country to see where property taxes increased the most from 2020 to 2021 (the latest data available).

To be included, each metro area had to have a population of at least 500,000. Metro areas include the main city and its surrounding towns and suburbs. The average tax rate is calculated using the average estimated market value of homes in each area.

Keep reading to see how property taxes have grown in your area, or check out the national list here.

Lancaster by the numbers

- Average property taxes in 2021: $5,507
- Average property taxes in 2020: $4,261
--- (up 29.2%)

Lancaster sits in the south central portion of Pennsylvania and is best known for its large Amish community. The metro area has seen home values rise, driven by a shortage of housing inventory and influx of millennial homebuyers, according to local realtors.

The typical listing price of a home in Lancaster ballooned from $250,000 in April 2020 to nearly $290,000 in April 2022, according to Realtor.com data.

Most local governments did not increase property taxes during the pandemic; however, many local school districts in the Lancaster area are proposing tax hikes for the upcoming 2022-2023 budget, according to LancasterOnline.

Home values in the U.S. skyrocketed in 2021, rising faster in one year than they have in recent history. Propelled by low interest rates, demand for homes shot up while builders struggled to complete enough new homes to satisfy buyers. The typical American homeowner saw their home value jump tens of thousands of dollars.

Those home values jumped so quickly that effective tax rates in 2021 likely didn't wholly account for the increases. In fact, effective tax rates largely declined across the country last year.

The average tax on single-family homes in the U.S. rose by 1.8% in 2021 compared to the year before, according to ATTOM Data. This represents the slowest rate of growth in five years. Smaller metros recorded some of the biggest tax increases, as home prices grew the most in these places.

Check out which metros have the fastest-growing property taxes below.

Metros with the fastest-growing property taxes

#1. Lancaster, Pennsylvania: +29.2% increase in average property taxes
#2. Nashville, Tennessee: +27.0% increase in average property taxes
#3. Knoxville, Tennessee: +22.2% increase in average property taxes
#4. Chattanooga, Tennessee: +22.0% increase in average property taxes
#5. Winston-Salem, North Carolina: +20.52% increase in average property taxes

This story originally appeared on Agent Advice and was produced and distributed in partnership with Stacker Studio.

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