BURDENS & BUYERS: A COMPARISON OF STATE BURDENS ON HOMEOWNERSHIP

This research paper provides a comprehensive comparison of key state cost burdens on homeownership, highlighting differences in state policy environments concerning taxation, regulations, and recurring ownership expenses. Using an index constructed from seven distinct factors combined within four metric categories, states are ranked from the lowest to the highest burden in their overall score and each metric category.

Burdens are grouped into categories of use, construction, transaction, and retention or long-term ownership costs. States are compared based on effective property tax rates, property taxes to income, real estate transfer tax rates, average closing costs, average utility bills, and building permits issued to population and population growth.

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In recent years, Americans have experienced rising home prices and strained family budgets. One contributor to homeownership costs is government burdens, such as taxes and regulations. This paper increases the understanding of homeowner cost drivers within states by providing a useful tool for comparing state policies that impact homeownership.

Full rankings are available in the paper, but the research provides the following results:

The least burdensome states for homeowners within the index findings are:

1. Louisiana

2. Idaho

3. Arkansas

4. West Virginia

5. Tennessee

6. South Dakota

7. Alabama

8. Indiana

9. New Mexico

10. Kentucky

11. South Carolina

12. North Carolina

13. Arizona

14. Montana

15. Oklahoma

The most burdensome states for homeowners within the index findings are:

36. California

37. Nebraska

38. Michigan

39. Illinois

40. Pennsylvania

41. Delaware

42. Washington

43. Massachusetts

44. Rhode Island

45. Maryland

46. New York

47. Vermont

48. Connecticut

49. New Hampshire

50. New Jersey

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Hern Policy Institute Burdens for Buyers.pdf

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