More than a dozen states limit how fast a home’s taxable value can rise each year, but only for as long as the same owner keeps it. The longer they stay, the further their bill falls behind what the house is really worth.
It creates a system that disincentivizes existing owners from selling, restricting housing supply and placing a disproportionate tax burden on new buyers.
Across the 29 major U.S. cities researchers tracked with this rule, newer owners were paying about 30% more than longtime neighbors. In high-growth cities like Miami, it’s closer to triple.