Before I answer your question, I would need some clarifications:
1. Do you mean will real estate taxes skyrocket for the neighborhood if you buy land and build your own home on it?
2. Do you mean that real estate taxes will go up just for you?
And, of course, if you build a house on undeveloped land, the land will now be improved and the real estate taxes will be assessed on the value of the house. The taxes are just a small portion of the total taxes once the land has been improved. The tax assessor will base his/her assessment on comparable market values of other homes in the neighborhood that have recently sold. If there are no valid "comps" or other properties to compare it to because the house would be new construction and maybe all the other homes are older, the assessor will do his/her best to make an accurate assessment. If you know what the building costs would be to build this house, you should consult with the tax assessor in your area to get a handle on projecting what the taxes would be.
Be careful that you don't spend more on building the house than on what other homes in the area sold for recently. If that happens, and you decide to sell, you may have alot of difficulty recovering the value of what you paid to build the house.
Anna Maria Vona
William Festa Realty