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en Z homeowners are facing a shock in the form of high property taxes, with almost 90 percent saying they underestimated the costs of ownership, according to a recent study from Insurify. This is not surprising given that property taxes have risen consistently over the past five years, with bills increasing by nearly 30 percent and reaching a monthly median of $250.

    A significant number of Gen Zers regret buying their home due to unexpected costs, with 40 percent saying they underestimated property taxes, 35 percent underestimating home insurance costs, and 32 percent underestimating mortgage interest. Insurify's data journalist Matt Brannon notes that Gen Z has entered the housing market at a challenging time, with high mortgage rates, limited savings, and student debt making it difficult to afford a down payment.

    Property taxes are often overlooked when considering homeownership costs, but they can add hundreds of dollars to monthly mortgage payments. In areas with high taxes, some potential buyers may delay their home purchase or look for more affordable options in suburban or rural areas. According to WalletHub, the average U.S. household spends $2,969 on property taxes annually.

    Susan Wachter, a real estate and finance expert at the University of Pennsylvania, notes that property taxes are often overlooked but can have a significant impact on affordability. She suggests that homeowners should get a clear estimate of costs up front and consider first-time buyer assistance or tax relief programs to keep payments sustainable.

    As Gen Z navigates the housing market, they will need to be open to lifestyle changes and policy changes to ensure homeownership remains realistic. Brannon notes that while homeownership is still part of the American Dream, it may require adjustments in expectations and affordability.