40 U.S. Metros with Highest 40-Year Home Price Growth

Real estate investors who locked in properties during the early years of the pandemic were rewarded with strong appreciation and, in many cases, growing rental income. But they weren’t immune to rising fixed costs—especially property taxes. Rapid home price growth during the Pandemic Housing Boom pushed up assessed values in many markets. Depending on location, those tax hikes may now be eating into operating margins and cash flow. To understand where investors are most impacted by property taxes—and where they can find the lowest rates—LendingOne analyzed the latest U.S. Census Bureau data to calculate the effective property tax rate, defined as median property taxes paid as a percentage of median home value, across hundreds of metros. Key Findings Rochester, NY has the highest effective property tax rate in the country at 2.45%, with other high-tax metros including Buffalo, Chicago, and Albany following, each with effective rates above 1.75%. Midwestern and Northeastern metros dominate the top of the list, where lower home values meet higher local tax rates. Florida metros have seen sharp increases in total tax bills, but their effective rates remain lower compared to older high-tax regions. Effective Property Tax Rate Among the largest 100 metros by occupied housing units, these ten had the highest effective property tax rates in 2023: Rochester, NY: 2.45% Chicago-Naperville-Elgin, IL-IN: 1.93% Buffalo-Cheektowaga, NY: 1.91% Albany-Schenectady-Troy, NY: 1.79% Laredo, TX: 1.64% Cleveland-Elyria, OH: 1.62% Syracuse, NY: 1.56% Scranton–Wilkes-Barre, PA: 1.55% Toledo, OH: 1.52% Milwaukee-Waukesha, WI: 1.50% In markets like Rochester and Buffalo, relatively affordable home prices can be appealing to investors—but high effective tax rates mean property taxes take a disproportionately large bite out of net operating income. Effective tax rate vs. tax bill growth: What matters for investors It’s important to distinguish between high effective tax rates and high (or fast-rising) tax bills. Several metros saw their effective property tax rates fall from 2019 to 2023 as home values rose faster than taxes paid. But the actual dollar outlay remains high. Atlantic City, NJ: down from 2.87% to 1.70% East Stroudsburg, PA: down from 2.36% to 1.44% Keene, NH: down from 2.63% to 1.84% Laredo, TX: down from 2.26% to 1.64% Lebanon-Claremont, NH-VT: down from 2.16% to 1.61% Despite the percentage drop, investors in these areas may still be paying more in absolute dollars—especially if they acquired property during the boom years. That’s because the effective tax rate is a ratio of taxes paid to property value—so if home prices surge but tax bills don’t rise at the same pace, the rate can decline while the actual amount owed increases.  For example, an investor who purchased a $250,000 home in 2020 that’s now assessed at $350,000 may face a larger tax bill, even if the effective rate has dropped from 2.2% to 1.8%. In other words, a falling effective tax rate doesn’t always translate to real savings—it can simply reflect rising home values outpacing reassessments. A high effective tax rate means a larger share of a property’s value is lost to taxes each year—an important metric for investors focused on cash flow yield, especially in lower-priced markets. A high or fast-growing tax bill can put pressure on out-of-pocket operating costs, even if the rate isn’t especially high. This is more common in fast-growing Sunbelt metros, where appreciation outpaced reassessments early in the pandemic. For investors, both can impact returns—but effective tax rate is the more stable, structural indicator of how burdensome local taxes really are. Effective tax rates in the largest 50 U.S. metros Florida metros are seeing rising tax burdens—but still lower rates Florida metros like Lakeland, Tampa, and Palm Bay have posted some of the biggest five-year increases in property tax bills, reflecting sharp home price growth and new assessments. But their effective rates remain modest relative to legacy metros. This nuance matters for investors. A market like Tampa may look affordable from a tax rate perspective, but investors entering at today’s prices should still factor in elevated tax bills as part of their underwriting. Median annual property taxes for the largest 40 U.S. metros The highest tax bills remain concentrated in expensive markets While effective tax rates highlight structural tax burdens, the biggest absolute tax bills are still found in high-priced coastal metros. New York-Newark-Jersey City, NY-NJ-PA: $9,615 San Jose-Sunnyvale-Santa Clara, CA: $9,553 Bridgeport-Stamford-Norwalk, CT: $8,840 San Francisco-Oakland-Berkeley, CA: $8,380 Austin-Round Rock-Georgetown, TX: $7,066 These metros aren’t necessarily effective tax rate outliers—but high assessed values push annual property tax payments well above the national average. Big Picture For real estate investors, property taxes are one of the largest recurring expenses—and a key driver of deal-level cash flow. Markets like Rochester, Chicago, and Buffalo have structurally high tax burdens relative to property value, making them especially important to underwrite carefully. Meanwhile, rising assessed values in markets like Florida are pushing up tax bills, even if the rate appears modest. The most successful investors in today’s market are those who go beyond surface-level affordability and dig into the real, local cost of ownership—and that means paying close attention to property taxes.

The last few years have brought sharp shifts in the rental market, with multifamily rents cooling in high-growth metros like Austin, Denver, and Phoenix.  However, in many of these same markets, single-family rents have held up better than their multifamily counterparts, creating a steady performance gap between the two sectors. National single-family rents rose +3.8% between May 2024 and May 2025, while multifamily rents rose +2.6%, according to LendingOne’s analysis of Zillow rental data. It’s a trend LendingOne continues to track closely, helping investors navigate where resilience—and opportunity—still exist. To see which markets are seeing single-family rental growth outpace multifamily rental growth the most in 2025, LendingOne analyzed year-over-year rental growth data from the Zillow Observed Rent Index (ZORI)* for the largest 100 U.S. metros. Single Family vs Multifamily Year-Over-Year Rental Growth Topline Findings Among the 100 largest markets, year-over-year single-family rental growth is outpacing multifamily rental growth in 75 markets.  In Sunbelt markets like Phoenix, Austin, and Denver, multifamily rents are falling, while single-family rents are holding up better—despite high overall supply. The strongest rental markets overall remain in the Northeast and Midwest, where both single-family and multifamily supply remains constrained and demand continues to be strong. Why is there Rental Growth Divergence? While national rents are still rising, growth has decelerated significantly since the peak of the Pandemic Housing Boom, when year-over-year single-family rent growth topped +13.4% in March 2022 and year-over-year multifamily rent growth peaked at +16.3% in February 2022. In the past year, markets like Denver, Charlotte, and Colorado Springs have seen single-family rents hold firm—or even accelerate—while multifamily rents have flattened or declined. So why is the multifamily market now seeing more softness than the single-family rental market? As of July 2025, the multifamily market is still absorbing a massive wave of new supply. According to RealPage, over 439,000 units were completed in 2023, followed by a record 671,953 units in 2024—the highest annual total since 1974. While construction is slowing—RealPage projects about 431,000 completions in 2025—many of those units are still coming online. Therefore, the divergence in single-family rental and multifamily rental growth is particularly pronounced across the Sunbelt, where multifamily developers have added supply at a rapid pace—but single-family rental demand remains steady. Difference in year-over-year single-family and multifamily rental growth Year-Over-Year Multifamily Rental Growth The softness in multifamily isn’t universal. Some markets with limited new construction and tighter housing stock are still seeing strong multifamily rent growth. In these metros, both single-family and multifamily rents are rising briskly, suggesting localized supply constraints and resilient demand across the board. Many of these strong rental markets are concentrated in the Northeast. Among the largest 100 metros, these are the top 5 with the biggest year-over-year multifamily rental gains: Augusta, GA: +7.2% Syracuse, NY: +7.2% Worcester, MA: +6.6% Bridgeport, CT: +6.4% Providence, RI: +6.1% Year-Over-Year Single Family Rental Growth The single-family rental market is not experiencing the same flood of supply as the multifamily market has. As a result, single-family rentals are benefiting from more limited inventory, especially in suburban and secondary markets where renters are prioritizing space, privacy, and flexibility. Among the largest 100 metros, these are the top 5 with the biggest year-over-year single-family rental gains: : Augusta, GA: +6.7% Indianapolis, IN: +6.5% Cleveland, OH: +6.5% Providence, RI: +6.5% Columbia, SC: +6.3% Big picture:  Overall, while multifamily markets are digesting a record wave of new units, the single-family sector hasn’t seen the same inventory growth. That’s helped keep single-family rents more stable in many metros. In places like Denver, Phoenix, and Austin, multifamily rents are flat or falling, while single-family rents remain positive. Still, in supply-constrained markets—especially across the Northeast—both rents across the board are growing, supported by tight inventory and steady demand.  For real estate investors, this trend highlights the relative strength of single-family rentals in oversupplied markets—and the importance of tracking local supply conditions.

How SFR Investors Can Win in Today’s Market The housing market isn’t what it was three or four years ago—and it’s not going back anytime soon. For single-family investors, this means adapting to a “new normal” where higher mortgage rates, increased carrying costs, and a rise in resale inventory are reshaping the investment landscape. Well gone are the days of buyers lined up around the block and bidding wars on every listing. But that doesn’t mean opportunity has vanished—it just looks different now. Many of the conditions that are causing hesitation in the broader market may work in favor of investors who approach this cycle with discipline, creativity, and a long-term mindset.  From financing strategies to market-specific deal flow as listings sit longer, to improved pricing power on insurance for larger portfolios—today’s environment rewards those who are prepared to pivot. The good news? With the right approach, investors can still uncover solid opportunities to build wealth, grow cash flow, and position themselves ahead of the next upcycle. Here are five things investors can do to win in today’s housing market. Buy the Deal, Not the Fed Waiting on the Fed to cut rates is not an investment strategy—it’s a gamble.  While many would-be investors sit on the sidelines, hoping for a pivot that may come too late or too slowly, experienced investors are staying active and searching for deals that pencil out. They’re underwriting conservatively, negotiating more aggressively, and prioritizing deals that make sense in today’s market—based on current rates, rents, and risks. Rather than chasing hypothetical upside tied to future monetary policy, they’re baking in downside protection on the front end. It’s not about timing the Fed. It’s about structuring the deal so that it works with the hand you're dealt today. More Inventory Is An Opportunity for Value Buyers  After a long stretch of near-record-low active inventory, single-family investors are finally seeing more resale homes come to market. For some, that might sound like bad news—more competition, less pricing power. However, the reality is that this normalization creates opportunities, particularly for disciplined buyers who focus on value. In some markets, specific properties are now remaining on the market for extended periods. Sellers growing fatigued by slow sales may be more willing to negotiate, opening doors for buyers to purchase homes below their previous peak prices. Especially in Q3 and Q4, expect pockets of deals that require some repairs or capital expenditures—classic value-add plays where investors can boost rents and equity over time. Investor Sentiment: More Bullish Despite the Headwinds Interestingly, when we fielded the LendingOne–ResiClub SFR Investor Survey this quarter, we found that investors are becoming more confident about buying—even as they acknowledge that the market feels slower and mortgage rates are higher than previously expected. In fact, in Q2 2025, 79% of single-family investors said they’re likely to purchase at least one more property in the next 12 months. That’s up from 61% in Q2 2024 and 77% in Q4 2024. This shift signals that many are embracing the new normal rather than waiting for old conditions to return. They recognize that market dynamics have changed permanently and are adjusting acquisition criteria accordingly, or they may be attracted by rising inventory and some markets turning into buyers’ markets. This pragmatic mindset bodes well for the single-family investment space. Rather than being paralyzed by uncertainty, investors who stay disciplined, focus on fundamentals, and pursue value will be best positioned to succeed. Insurance Stability Emerging After the Storm—Don’t Be Afraid to Policy Shop The last few years have seen a surge in property insurance costs, fueled by rising replacement values. However, according to our intel, this lagged inflationary spike is beginning to level off. This provides investors with better clarity for cash flow projections and long-term planning. And if you’re savvy, you’ll even be able to get it lowered a little. For those with multiple properties, now is an ideal time to explore portfolio-level insurance, which spreads risk across your holdings and can unlock significant discounts.  Even for smaller landlords, policy shopping—getting fresh quotes, reassessing coverage levels, and comparing carriers—can yield real savings in a market that’s no longer spiking month after month. It’s Time To Be Strategic!  Yes, the housing market today looks very different from the frantic boom of the pandemic years. But for single-family investors willing to think strategically and embrace change, it remains fertile ground for growth. Whether it’s taking advantage of ARMs, leveraging portfolio-level insurance savings, or hunting down value deals in rising inventory. The market’s “new normal”—and no one truly knows how long it’ll last—might require a little more patience and flexibility, but it also offers a real opportunity for those ready to adapt and invest with their eyes wide open.