For years, it was easy to avoid local property taxes in a city by not paying the bills.
But now, as the housing market continues to boom, homeowners are facing even more challenges paying the hefty bills they do have to keep their homes in order to afford living.
According to a new report from real estate analytics firm REIS, property taxes could soon become the biggest burden on homeowners.
While property taxes are still relatively high, the report found that they are on track to reach $5.9 billion in 2017, and by 2022 that number could be higher.
In the meantime, homeowners in many areas of the country have been forced to pay more in property taxes than they can afford.
According to the Real Estate Institute of America, property values have already gone through a dramatic drop since the economic downturn began.
According, a recent study by the Institute found that only a quarter of Americans now own their homes, while the rest are either renting or buying.
The survey found that homeowners have been paying $1,000 more for a home in 2017 than they did a year ago.
And with more than $50 billion being added to the federal budget every year, property tax payments are expected to continue to climb.
In fact, property owners could see their bills increase by as much as $5,000 per year in the coming years, according to the report.
To make matters worse, the housing bubble has caused the cost of real estate to skyrocket.
With prices soaring in many parts of the U.S., many of which are in expensive neighborhoods, homeowners can’t afford to keep up with the monthly mortgage payments required to maintain their home.
For this reason, many are considering selling their homes.
The REIS report estimates that by 2021, approximately 40 percent of American homes will be foreclosed upon.
The REIS survey also found that a third of all American homeowners have taken out a loan to finance their purchase of a home, and that the median amount loaned out was $1 million.
Despite the increasing cost of owning a home and the growing need to pay property taxes, the average homeowner has yet to see an increase in their property tax bill.
According in the report, a typical homeowner could be facing an additional $531 in property tax bills in 2021, which is equal to approximately $2,000 in 2016.
This could lead to more homeowners struggling to pay their bills, leading to an even bigger burden on taxpayers.
Revenue for local governments is also projected to drop due to the rise in property and personal property taxes.
When property taxes become a burden, local governments will find it increasingly difficult to fund their programs, leading the report to call on lawmakers to address the issue.
Households are now expected to pay $6,066 per year on average in property property taxes while homeowners will pay $1.9 trillion in property values, according the report released today.
The median homeowner will be paying $2.3 million in property value taxes in 2021 while the median homeowner would be paying an additional more than a half million dollars in property-tax bills per year.