N
ote: This article contains the views of Hernando Ward 5 Alderman/Broker Kit Kitchens, who is solely responsible for its content. The views expressed are his only and not necessarily that of this publication.

    Homebuyers in DeSoto County face a staggering increase in mortgage payments due to rising home prices, interest rates, and insurance costs. Since January 2020, the median home price has increased by 63%, from $210,000 to $333,900. This, combined with a nearly 100% increase in interest rates, has resulted in a 135% hike in monthly mortgage payments.

    Insurance costs have also risen by an estimated 30-40%. While property taxes have remained relatively low, the looming reassessment will likely lead to increased costs across all elements of mortgage payments. This has left many young families struggling to afford starter homes and forced others to abandon their dream homes due to unaffordable interest and insurance rates.

    The real estate industry is witnessing a significant shift in the market, with fewer people buying and selling homes. The low level of activity has created a fragile equilibrium that could be disrupted by further affordability issues or an increase in housing inventory. A small property tax increase can have a disproportionate impact on buyers, pushing them out of the market.

    Commercial properties will also face increased costs due to higher assessed values, which may lead to business closures and reduced sales tax revenue. Cities should consider the long-term consequences of such increases, including the potential loss of businesses and homes that are never built.

    To mitigate these effects, residents can continue to make their voices heard by contacting local officials and attending public hearings on millage decreases. Homeowners should also start paying extra towards their escrow accounts to prepare for potential tax increases. As an Alderman, I will not support any tax increase beyond the 3% organic growth proposed by the mayor.

    The proposed budget is still unbalanced despite the expected revenue increase, and I believe that any additional revenue should be returned to taxpayers rather than being absorbed into the budget.