Some say TX prices are depressed due to high property taxes since it represents a significant component of household TCO. Comparing Seattle to Austin, the property value is 43% greater but the ongoing tax burden is 8:11, 27% less.

Seattle: 0.930% of Assessed Home Value

SF: 0.640% of Assessed Home Value

Dallas: 1.930% of Assessed Home Value

Austin: 1.820% of Assessed Home Value

Houston: 2.030% of Assessed Home Value

Source: https://smartasset.com/taxes/property-taxes

That SF number isn't accurate. The 2021-2022 rate is 85% higher (1.18248499%). [1]

Another important thing about property taxes is to know when an updated assessed value is triggered and if there are any limits on how it changes. For example in SF, the assessed value is basically set to the sale price, immediately. But then the assessed value doesn't change until there's another property sale (or permitted improvements are made).

In some states assessed values are updated every year regardless of sales or improvements. [2]

[1] https://sftreasurer.org/property/secured-property-taxes

[2] https://taxfoundation.org/state-provisions-property-reassess...

Yeah, my locality changes the rate annually to make their revenue numbers and reassess regularly although not aggressively and never downward.

Not sure if this is included in the assessment, but TX does not have a state tax.

Yes, the complete absence of state income taxes makes an enormous difference. Texas property taxes sound crazy until you take that into account.

Putting taxes on sales and property means that even those paid under the table can't escape taxation.

In the absence of an income tax and presence of similar overall government spending then increased rates of other revenue sources are a first order effect.

How this shapes the valuation of other things, like houses, is an interesting second order effect. Property tax rates shape how affordable housing is during the mortgage period and after.

Specifically Austin vs Seattle, that's a non-factor. No state income tax in WA either