Now This Would Solve Home Purchase Affordability

Every once in a while, a policy idea comes along that doesn’t just nudge the affordability needle — it grabs it by the collar, shakes it violently, and says: “Let’s fix this.”

And believe it or not, Georgia lawmakers may have just introduced one of those rare ideas.

Georgia State House members have introduced a bill that would gradually reduce — and ultimately eliminate — property taxes on owner-occupied homes by 2032, beginning with phased reductions starting in 2026.

Now, I’ve spent plenty of time discussing affordability solutions from the mortgage side — 40-year terms, even 50-year terms, alternative structures, buydowns, you name it.

But let’s be clear:

Eliminating property taxes?

That’s not a tweak.
That’s a game-changer.

Let’s take a very normal Georgia scenario:

• Home value: $500,000
• Annual property taxes: ~$6,000/year
• Monthly tax burden: ~$500/month

If those property taxes are eliminated, the homeowner’s monthly payment drops by about $500 per month — and that’s not some tiny “feel-good” savings.

That is real affordability.

Let me translate that into plain English:

That’s like mortgage rates dropping from 6.5% to 4.75%… without the Fed lifting a finger.

And if you’re wondering why I’m excited, it’s because that’s the kind of shift that can revive the purchase market faster than any lender promo, buydown gimmick, or “special spring incentive” email campaign ever could.

In fact, on a typical 5% down purchase, a $500/month reduction is roughly equivalent to the borrower receiving something like a 1.75% reduction in their mortgage interest rate.

Of course, there’s one small detail.

Just a minor issue.

A tiny question.

How do counties and cities replace billions in lost property tax revenue?

Because property taxes don’t just fund “government stuff.” They fund:

• Schools
• Police
• Fire departments
• Infrastructure
• Parks
• Public services
• And basically, everything your local government does besides post motivational quotes on Facebook.

The idea being floated is to offset the lost revenue through higher sales taxes — effectively shifting the system from a property-based tax model to a consumption-based model.

Meaning:

• The more you buy
• The more you spend
• The more you contribute

In theory, that sounds clean and simple.

In practice… well, this is where economists start sharpening their pencils and muttering things like “regressivity” and “distributional burden.”

Yes, It’s Regressive — But So Is the Status Quo

The main criticism will be predictable:

“Sales taxes hurt lower-income households more than wealthier ones.”

And yes — that’s generally true.

But here’s the part that doesn’t get said loudly enough:

Property taxes also hit middle-class homeowners hard.

Especially first-time buyers and young families.

Because property taxes don’t care if you’re cash-flow rich or cash-flow broke. They just show up every month like a subscription service you never signed up for.

And unlike mortgage interest, you can’t refinance them away.

From an economic standpoint, expanding homeownership isn’t just a feel-good political slogan.

Higher homeownership rates tend to correlate with:

• Stronger community investment
• Higher educational outcomes
• Lower crime rates
• Greater neighborhood stability
• Increased household wealth over time

Homeownership, for better or worse, remains one of the most reliable long-term wealth-building mechanisms for American households.

So, if this bill materially increases the ability for Georgia families to buy homes — especially during a period of elevated rates and high prices — the downstream economic benefits could be substantial.

If Georgia can pull this off responsibly — without gutting local services or turning counties into GoFundMe campaigns — this could be one of the most meaningful housing affordability proposals we’ve seen in years.

So here’s to you, House Representative Jon Burns.

Now the question is whether the rest of the Georgia House and Senate can see what’s sitting right in front of them:

A policy that doesn’t just talk about affordability — it actually creates it.