States With The Highest And Lowest Property Taxes In 2023

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Labor Market Shows Further Signs of Cooling link

• The U.S. added 187,000 jobs in August, surpassing the expected 170,000. However, job growth for June and July was revised down by 110,000 combined.

• Over the past three months, the average monthly job gain dropped to 150,000, a decline from 312,000 in Q1 2023 and 400,000 in 2022.

• The unemployment rate increased to 3.8% from 3.5%, but the labor force participation rate also rose, reaching 62.8% - its highest since before the pandemic.

Top 10 U.S. Metros Where Mortgage Originations Are On The Rise link

• U.S. residential property mortgages surged to 1.56 million in Q2 2023, marking a 21% quarterly increase, the first rise in two years.

• Significant quarterly jumps in purchase-mortgage originations were observed in metros like Knoxville, TN (116.8%), Honolulu, HI (84.4%), and Madison, WI (84.4%).

• Mortgages backed by the Federal Housing Administration (FHA) constituted 13.8% of all residential property loans in Q2 2023, up from 12.9% in Q1 2023.

It was a bad week for the US Economy. What will Home Prices do in Response? link

• The US labor market showed significant slowing: job openings dropped, unemployment rates rose, and wage growth decelerated. This suggests potential challenges for the US Housing Market in the latter half of 2023 as job prospects diminish.

• Job Openings in July 2023 fell by 27% from their peak last year, indicating reduced employer confidence. However, they remain above pre-pandemic levels, suggesting some economic resilience.

• Wage growth for non-supervisory employees slowed to 3.8% YoY in August. This limited wage growth could impact housing affordability unless home prices and mortgage rates adjust.

Nation’s Best and Worst Unemployment Rates by Market link

• U.S. unemployment rate in July remained steady at 3.8%, marking the 17th consecutive month below 4%.

• Baltimore boasted the lowest unemployment rate among the 50 largest markets at 1.7%, while Las Vegas had the highest at 6.1%.

• Year-over-year, unemployment rates rose in 30 of the nation’s largest markets, decreased in 18, and remained unchanged in two. Baltimore, Cleveland, and Pittsburgh saw the most significant improvements.

Property Taxes By State: A Breakdown Of The States With The Highest And Lowest Property Taxes In 2023 link

• Every state in the U.S. requires homeowners to pay property taxes, but rates vary significantly. These taxes contribute to local amenities like schools and public works.

• Hawaii consistently ranks as the state with the lowest property tax rate, both in median (0.286%) and mean (0.315%) rates. Following Hawaii are states like Alabama, Colorado, and Louisiana.

• The Northeast and Midwest regions dominate the list of states with the highest property taxes. New Jersey, Illinois, and New Hampshire top the list, with factors like quality public schools influencing the rates.

Trends Shaping Multifamily Housing in 2023 link

• Labor Shortage: The construction industry faces a significant lack of qualified labor. With 1 in 4 construction workers older than 55, there's a pressing need to hire more workers to meet the growing demand by 2024.

• Rising Material Prices: Due to the impact of COVID-19 and labor shortages, construction material suppliers have increased prices. Materials like concrete, copper wire, iron, steel, and wood products have seen price hikes.

• Tightening Financing Opportunities: Factors such as rising building costs, investor uncertainty, and strict lending terms are making developers cautious about initiating new projects.

• Oversaturated Markets: The surge in multifamily developments in 2022 has led to oversaturation in some areas, causing a slowdown in rent growth and challenges in renting units.

• Project Backlog: The multifamily boom has resulted in project delays due to a lack of materials, financial resources, and skilled labor, with a significant number of apartments still under construction.