Nation’s Highest Rates Fuel Foreclosure Surge
New Jersey homeowners are facing a perfect storm of financial pressure as the Garden State continues to lead the nation in property tax burden while simultaneously experiencing a troubling surge in foreclosures across the New York metropolitan area.
The Nation’s Heaviest Tax Burden
New Jersey residents pay the highest property taxes in the United States, with a median property tax bill of $9,413 in 2024 – nearly triple the national median of $3,500. This crushing tax burden places the Garden State at the top of a list that includes other high-tax northeastern states like New Hampshire, Connecticut, and New York, while southern states continue to offer significantly lower rates.
The disparity is stark. While New Jersey homeowners struggle with five-figure tax bills, residents in southern states benefit from property tax rates that are often less than half of what Garden State residents pay. This difference has become a major factor in population migration patterns, with many New Jersey families relocating to states with more favorable tax environments.
Rising Costs Drive Housing Crisis
The property tax crisis has been exacerbated by broader market trends. Across the nation, the median property tax bill grew by 2.8% from 2023 to 2024, with over 73% of properties experiencing tax increases during that period. These increases have been largely driven by home price appreciation, which directly impacts property assessments and, consequently, tax bills.
For New Jersey homeowners already paying the nation’s highest rates, these increases have created an even more severe affordability crisis. Property taxes are calculated based on a home’s assessed value and location, meaning that as home values rise, so do tax obligations. With home values being re-evaluated annually in many jurisdictions, property tax bills can change dramatically from year to year.
According to Realtor.com senior economist Joel Berner, the issue facing many homeowners is that property taxes are growing due to increased home values and changes to local tax rates. This creates a double burden for New Jersey residents who must contend with both the highest base rates in the country and the same appreciation-driven increases affecting homeowners nationwide.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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