WCPO: Historic property value hikes irk county auditors

UC economics professor says housing market factors contribute to tax increases

Auditors in Butler and Clermont counties have criticized the Ohio Department of Taxation, WCPO reported, stating historic property value increases will burden homeowners with significantly higher taxes.

The Ohio Department of Taxation recommended a 43% increase in property values in Clermont County and 42% in Butler County as part of reappraisals that are conducted every three years. The rate hikes are the largest since at least 1978 when the triennial updates began.

LCoB faculty and staff

David Brasington

The large increases in housing values can be attributed to market conditions including high demand and low supply, said David Brasington, PhD, James C. and Caroline Kautz Chair in Political Economy and professor of economics at UC's Carl H. Lindner College of Business.

“When you reduce the supply of something, you push up the price,” he said. “Housing is probably going to stabilize at these levels … we don’t see any dramatic change in the near future.”

Low mortgage rates in recent years led more people to buy more expensive homes, Brasington said. Additionally, flippers and investors have purchased heavily in the Cincinnati region, driving costs higher, he said.

“My thoughts are it's probably suburbanization. It’s more people buying houses, they want new houses, especially people with a lot of income,” Brasington said. “The edges of Cincinnati are where the new housing can be built the most, so that’s where the highest demand is, that’s where they’re putting up the biggest houses, and prices will go up for that reason.”

See more from WCPO.

Featured image at top: House for sale. Photo by Dillon Kydd on Unsplash

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