US property taxes outpace inflation

What happened: Property taxes in the U.S. rose by an average of 3% in 2025, outpacing inflation, according to The Epoch Times. This increase is putting pressure on homeowners, particularly seniors on fixed incomes. In Montana, a couple faces a 107% spike in property taxes, threatening their retirement, while in Cleveland, homeowners are expressing concerns about rising property taxes derailing their American Dream.

Market impact: The rapid increase in property taxes is squeezing homeowners' disposable income, potentially reducing consumer spending and impacting retail sales. This could affect companies like Walmart and Target, which rely heavily on consumer spending. Additionally, real estate investment trusts (REITs) and homebuilders like Lennar and PulteGroup may face headwinds due to reduced affordability and potential slowdown in housing demand.

What to watch next: In the coming months, investors should monitor the U.S. Census Bureau's release of new home sales data (scheduled for March 2026) to gauge the impact of rising property taxes on the housing market. Additionally, keep an eye on the Consumer Price Index (CPI) report (scheduled for April 2026) to assess if inflation remains a concern, further driving property tax increases.