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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 74 February 2025 J O U R N A L 4. San Antonio, Texas ($285,994) 5. Houston ($325,990) Young Adults Are Migrating South and West Over the past decade, the West has seen the biggest growth in its young adult population (4.4%), with the South next (3.4%). Meanwhile, the Northeast's young adult population decreased by a whopping 9.6% in the past decade. The high cost of living might have influenced this decline in the Northeast, according to MoneyGeek. The most sig- nificant declines were in New York City and Philadelphia, with each losing 15% of their young adult population. "It is hard for Gen Z in New York City," says Nikki Beauchamp, an As- sociate Broker with Sotheby's Interna- tional Realty in New York City. "From a rental perspective, people often need to consider getting roommates or renting out rooms to be able to afford it." Of her clients who are looking to buy, Beauchamp says Gen Z is getting creative. They're thinking about buying multifam- ily units in the boroughs with friends or purchasing property outside of the city together while still renting in the city. So where are all those young people fleeing to? The answer: Round Rock, Texas, and Alexandria, Virginia. Those are the two metros that saw the most significant growth, climbing by 160% and 106%, respectively, between 2012 and 2022. PROPERTY TAX HIKES STRIKE ONCE- AFFORDABLE STATES H omeowners enjoying the eq- uity gains of soaring property values are now contending with an unwelcome consequence: skyrocketing property taxes. Over the past few years, property tax payments have climbed sharply in many regions, particularly in states once regarded as affordable. This surge ref lects a broad- er challenge of housing affordability as costs continue to rise. Nationally, property tax payments increased an average of 5.5% from 2023 to 2024, according to CoreLogic's latest research, and have risen 27.4% since 2019. The median U.S. property tax payment in 2024 reached $3,018. These increases highlight the growing strain on home- owners' budgets, especially as nearly one-third of American households are now classified as cost-burdened. "With nearly one-third of American households now considered cost-bur- dened, concerns around housing affordability can no longer be ignored," CoreLogic's report states. "It's clear that the increasing cost of homeownership is an issue that requires our attention." Tax Rates and Rising Home Prices Property taxes are determined by state and local governments, and rates vary widely. Some states with lower tax rates have nonetheless experienced significant increases due to surging property values. Colorado, for example, boasts one of the lowest property tax rates in the country at 0.52%, yet the state has seen the largest increase in median payments. Colorado homeown- ers faced a 10.6% rise in property taxes from 2023 to 2024 and a staggering 52.9% increase since 2019. During the same period, home prices in Colorado climbed 47%. Georgia and Florida have followed similar trends. Georgia's property tax payments rose by 10.3% from 2023 to 2024 and 51.5% since 2019, while Flori- da's payments increased by 9.5% annu- ally and 47.5% over the past five years. Both states have seen home prices grow well above the national average, with Georgia recording a 65% increase and Florida a 73% jump since 2019. Even states with relatively afford- able tax rates are feeling the pinch. North Carolina, which has a property With nearly one- third of American households now considered cost- burdened, concerns around housing affordability can no longer be ignored.