What's everyone on about?
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What’s up with the sudden rise in news stories about sudden huge jumps in home/ property assessment values? (self.OutOfTheLoop)
submitted 16h ago by Alkaline-Eardrum
An example here: https://www.kmbc.com/article/kansas-city-homeowner-frustrated-after-home-jumps-up-185000-in-valuation/44498934#
I’ve seen stories like this from all over the country too. My questions are these?
1: What economic forces are causing this?
2: What public policy or policies allow this to happen?
3: What can people do to contest these?
4: Other factors not mentioned above.
Thank you for your help!
I’ve seen stories like this from all over the country too. My questions are these?
1: What economic forces are causing this?
2: What public policy or policies allow this to happen?
3: What can people do to contest these?
4: Other factors not mentioned above.
Thank you for your help!
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pinnr 16 points 15h ago
Answer: The value of people's homes increased during COVID, which results in property owners paying more property taxes. People don't like having to pay more in taxes, especially when it is due to things outside of their control, like the value of their property. People who have lived in the same property for many years might not even be able to pay the increased taxes, which eventually causes the house to be lost in foreclosure.
arcxjo 3 points 8h ago
Also, the media want to spin people not being able to afford basic necessities as a good thing so they say "Look how much houses are worth!" instead of "cost!"
Nbtanbta 0 points 9h ago
The nominal sale prices of houses and property increased, but they kept the same value, as homesteads. (Price is what you pay, value is what you get).
People love when the prices of their houses increase, because many can and did tap their equity for loans and others sold and made a tidy profit.
In this case, remaining existing owners, who do nothing to pressure their local governments to zone or plan for more housing, reduce spending, and limit investment ownership of multiple residential properties, are mad that their new neighbors, who have been frenziedly jacking up property prices, are wrecking their comps and causing higher property tax evaluations.
Meanwhile, government officials chortle at the thought of all the extra servings of pork they are going to dole out to their security forces, government crony-tractors, and other assorted flim-flam friends.
Now you know!
People love when the prices of their houses increase, because many can and did tap their equity for loans and others sold and made a tidy profit.
In this case, remaining existing owners, who do nothing to pressure their local governments to zone or plan for more housing, reduce spending, and limit investment ownership of multiple residential properties, are mad that their new neighbors, who have been frenziedly jacking up property prices, are wrecking their comps and causing higher property tax evaluations.
Meanwhile, government officials chortle at the thought of all the extra servings of pork they are going to dole out to their security forces, government crony-tractors, and other assorted flim-flam friends.
Now you know!
_tuelegend 1 points 1h ago
so do we blame the new neighbors for buying homes and not the previous neighbors for selling their homes ?
[deleted] 3 points 15h ago
[deleted]
Alkaline-Eardrum [OP] 1 points 15h ago
That’s awful. Is there any recourse for people who are priced out of their own homes despite owning them and being retired on SS?
pinnr 1 points 15h ago
Depends on the sate.
pppiddypants 2 points 9h ago
Answer:
1. Supply and Demand. When demand rises and supply doesn’t keep pace, price goes up.
2. The main policy that influences housing availability is zoning, which is a locally controlled policy. For decades, city administrators across the country have known that the zoning codes they use will result in an under building of homes for the growth rate they predict. The administrators have known and allowed this to happen because the majority of voters are already homeowners who don’t mind their property values increasing, but do mind when a new building goes in near them that is, apartments, tall, or uses their street parking. The poster child for all of these problems is California, where they’ve been dealing with this phenomenon for 50 years and keep thinking it’s a temporary over-evaluation, even when it’s gone on for decades.
3. Not much, typically your accessed value goes up because the actual real estate market has gone up. But there typically is also a local waiver for property tax relief if you are above a certain age or have a fixed government income that you can apply for.
4. I mention CA because in 1978, CA voters overwhelmingly passed Prop 13, which severely limited property tax increases. And I just want to point out that property taxes are one of the only ways that homeowners feel a housing crunch that massively affects renters/future generations. And when they do that, homeowners become investors who only want to see the line go up and therefore have no incentive to support zoning or other changes that would make prices go down.
Since Prop 13, zoning in California has gotten stricter, while their housing affordability has begun to affect the rest of the nation.
1. Supply and Demand. When demand rises and supply doesn’t keep pace, price goes up.
2. The main policy that influences housing availability is zoning, which is a locally controlled policy. For decades, city administrators across the country have known that the zoning codes they use will result in an under building of homes for the growth rate they predict. The administrators have known and allowed this to happen because the majority of voters are already homeowners who don’t mind their property values increasing, but do mind when a new building goes in near them that is, apartments, tall, or uses their street parking. The poster child for all of these problems is California, where they’ve been dealing with this phenomenon for 50 years and keep thinking it’s a temporary over-evaluation, even when it’s gone on for decades.
3. Not much, typically your accessed value goes up because the actual real estate market has gone up. But there typically is also a local waiver for property tax relief if you are above a certain age or have a fixed government income that you can apply for.
4. I mention CA because in 1978, CA voters overwhelmingly passed Prop 13, which severely limited property tax increases. And I just want to point out that property taxes are one of the only ways that homeowners feel a housing crunch that massively affects renters/future generations. And when they do that, homeowners become investors who only want to see the line go up and therefore have no incentive to support zoning or other changes that would make prices go down.
Since Prop 13, zoning in California has gotten stricter, while their housing affordability has begun to affect the rest of the nation.
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