Know the facts
The State of Our Housing Market
The costs associated with buying a home have doubled over the last two decades. Inflation has made it even worse. A home that once cost $1 million dollars – once considered a luxury mansion – is now becoming the norm. In the last few years, the percentage of homes sold in New Jersey over $1 million has more than tripled.
Cost of Living
- New Jersey has the 5th highest cost of living in the nation.
- New Jersey has the 8th highest median home price.
- New Jersey homeowners pay the 8th highest average mortgage payment and 3rd highest rent of all 50 states.
- The median monthly housing costs in New Jersey ranks 4th nationally.
- New Jersey shoppers pay the 12th highest annual food costs in the nation.
Inflation and Growing Costs
With inflation, we have seen a massive decrease in home sales close since 2021. A Realty Transfer Tax on homes that cost $1 million will affect a large portion of New Jersey homeowners. These increases will disincentivize investments in New Jersey, as they already have in our state since the last “mansion tax” was passed.
The million-dollar threshold for the tax was created back in 2004. Two decades ago, a million dollars might have bought a mansion, but the reality is that inflation and the dramatic rise in home prices in today’s market means that a home at that price level is firmly in the middle class in many parts of New Jersey.
This will hurt:
- Future residents looking to relocate from out-of-state
- First-Time Homebuyers
- Senior citizens looking to sell their larger homes in order to downsize
We Are In A Housing Crisis
As it is, there is very little available inventory. There are not enough properties for sale for the people who want to live here.
With this tax hike, anyone who is looking to make an upgrade or downsize to a more manageable space will stay out of the market, perpetuating a cycle of housing crisis that results in fewer homes for sale and higher prices for everyone.
Send a quick message to your state representative, urging them to OPPOSE the New Tax Hike on Home Sales
Make Housing More Affordable by Taxing Housing?
Housing costs have never been higher. It does not make sense to fund affordable housing programs by raising housing taxes, making housing for middle-class families more expensive.
Instead of considering higher taxes on vices such as online gambling or cannabis, politicians want to stick homeowners and renters with the bill.