SERHANT. founder and CEO Ryan Serhant spoke with Fox News Digital at his SoHo headquarters to discuss how the convergence of local policy friction, heavy property tax burdens, and skyrocketing insurance premiums is stalling mobility in the current housing market.
While American homebuyers are already struggling with elevated interest rates and high listing prices, they are now facing a complex “obstacle course” of additional financial hurdles, including rising insurance premiums and regulatory challenges.
According to Serhant, the rising monthly cost of carrying a home in high-growth states is becoming a decisive factor in where families choose to settle, moving the conversation beyond mere mortgage rates.
“New York taught me that real estate is a function of price, rates, supply, and demand,” Serhant told Fox News Digital. “As we expanded the company nationwide in 2023, we quickly realized that price and rates are only a small part of what I would call a housing obstacle course.”
“You realize that the game has somewhat been rigged by those who created the obstacle course in the first place, which punishes mobility in favor of stability.”
As of Thursday, the average rate for a 30-year fixed refinance stood at 7.11%, up from 7.07% the previous week, while the average 15-year fixed refinance rate reached 6.34%, according to the Mortgage Research Center. These shifts follow the Federal Reserve’s recent decision to raise the target range for the federal funds rate from 3.5%-3.75% to 3.75%-4%. This 25-basis-point increase represents the first rate hike since July 2023.
Ryan Serhant breaks down the U.S. housing “obstacle course” that’s become “rigged” by those who created it. (Getty Images)
Furthermore, a recent report from Redfin indicates that U.S. home prices grew 3.7% year-over-year in August, marking the fastest annual growth rate in a year.
While these cost pressures might encourage homeowners to migrate to states without individual income taxes, such as Florida or Texas, Serhant cautioned that hidden carrying costs can often negate the perceived tax savings.
“People move with two things—it is not just their feet, as politicians like to say; they move with their wallets and their hearts,” he remarked.
“Take Florida or Texas, for example. People see no state income tax, but then they realize how property taxes are determined. In Florida, it can be nearly 2% of the value. That is significant. When you add sales taxes and the cost of homeowners insurance—especially in coastal cities where private insurance may be required—the monthly cost adds up quickly,” Serhant noted, adding that natural disasters like hurricanes or wildfires only increase that risk.
Serhant also addressed how city-level policies, such as New York City’s new ‘pied-à-terre’ tax on non-primary residences, can cause market gridlock. He argued that such taxes do not necessarily force high-net-worth individuals to lower their prices, but instead freeze activity among middle-tier buyers.
“The tax hasn’t pushed people out of the city entirely, but it has frozen those in the middle whose monthly budgets are heavily impacted,” Serhant explained. “It affects the person who might want a small apartment near family or for occasional trips to the city; suddenly, those trips or that lifestyle become a burden.”
“Governments need to adopt a long-term perspective, which many constituents do not,” Serhant continued. “While a parent is thinking about their immediate daily commute and their child’s immediate needs, the government should be planning 10 or 20 years ahead to create environments that foster growth and opportunity. I believe parts of New York, Seattle, and California are currently taking a short-term view that is frustrating for long-term stability.”
A view of Charlotte, North Carolina, the biggest city in the Southeastern state. (iStock)
Serhant emphasized that fundamental drivers such as job creation, educational quality, public safety, and infrastructure remain the primary influences on home purchase decisions, citing the rapid expansion of markets like Charlotte, North Carolina.
“The Carolinas are often overlooked in mainstream media because they don’t generate the same ‘clicks’ as coastal hubs,” Serhant noted. “But people move for job growth, education, and security. Policy often gets the headlines, but those three pillars drive actual migration.”
In an era of geographic flexibility regarding employment, Serhant observes that real estate remains a hyperlocal asset. Consequently, cities and states that introduce excessive administrative friction risk losing investment to more accommodating regions.
“You buy based on the specific street, the local restaurants, and the schools,” Serhant said. “Investors and mobile populations are looking at markets that aren’t overstretched. They don’t need to be tied to a specific state for a job or schooling if they can find those opportunities elsewhere without the burden of high property or income taxes.”
“The economy is global and moves in milliseconds. We are working to reduce the friction in property—the world’s largest asset class—to help bring the national market back to a healthy state.”
