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Taxes Paid by Property Owners Rising

Property owners paid $601 billion in taxes over the four quarters ending in Q2 2019, according the National Association of Home Builders analysis [1]of Census Bureau data. 

The NAHB states that is how now been more than seven years since there was a decline in four-quarter property tax revenues. 

Property taxes slowed in each quarter during 2018, but the four-quarter growth rate of property tax revenue increased during the first two quarters in 2019. Rising by 18.4%, corporate income tax revenues grew faster than any other major category. 

State and local individual income tax revenues grew 4.2% while property and sales collections increased by 4.3% and 3.6%, respectively. 

Overall, property taxes accounted for 39.1% of state and local tax receipts—the first quarterly decline in three quarters. Following property taxes were individual income taxes (29.1%), sales taxes (27.4%), and corporate taxes (4.4%). 

Affordability has been a theme for the housing market for most of 2019, and a new survey by Redfin [2]found that 46% of respondents said rising home prices over the past decade have made their lives worse and just 16% said their lives are better. 

The survey revealed that those who bought a home at the bottom of the housing market in 2012 have earned $203 billion in home equity. Thirty-two percent of respondents said rising home prices have had no impact on their lives. 

Additionally, 41% of those surveyed said Federal Tax Reform has had no impact on their lives. Jut 20% said that has made their lives better compared to 25% who said it has not. 

Also, 63% of respondents say the government should provide down payment assistance to working class families buying their first home. Redfin surveyed more than 3,000 people who bought or sold a primary residence over the past year. 

Recent insight form CoreLogic [3]studied home prices, and noted that rising housing costs are impacting entry-level buyers the most. 

CoreLogic states that since May 2018, prices of homes more than 25% above the average have risen 3%, compared to 5.5% for homes priced more than 25% below the median.