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Chattanooga is the #4 metro with the fastest-growing property taxes in America

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July 25, 2022
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This story originally appeared on Agent Advice and was produced and distributed in partnership with Stacker Studio.

Chattanooga is the #4 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.

Chattanooga by the numbers

- Average property taxes in 2021: $1,721
- Average property taxes in 2020: $1,411
--- (up 22.0%)

With low overall taxes that include a lack of state income tax, Tennessee has attracted remote workers and retirees over the course of the pandemic.

In Chattanooga, residents who saw their property tax bill increase in 2021 are likely to see a similar increase in 2022. Housing inventory in the region hasn't kept up with demand, sending the typical home value up roughly 20% over the past year, according to data from Realtor.com.

Developers have announced a number of new housing initiatives along the Tennessee River that runs through the city.

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

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