Yes, this is an issue. The only thing that helps is that many people are dependent on the NYTristate area for their employment. 

CT and NJ generally have lower taxes, BUT CT is having a lot of trouble keeping businesses in state. The money has to come from somewhere so, the propety taxes were in for a big hike. NY has a similar shortfall, but it has NYC and about 3.5X the number of residents with which to spread the pain. NJ is better for people who commute to downtown Manhattan. Westchester/Long Island, is best for a midtown commute. 

People will continue to live the tristate area. The question is which areas, which towns "win". 

Meanwhile, within Westchester there is a patchwork quilt of property tax rates. In this case, the areas that were winning before the new tax plan will probably be the big losers.

A lot of the towns with lower taxes and lower property values remained fairly unloved by home buyers  during most of the recovery.  I do think that this will help these areas come into their own.  

They buyers were running pel-mel to the most expensive towns with the insanely high school ratings and the taxes were often through the roof. They were ignoring the cities and towns with really GOOD schools and nice neighborhoods. Now the tax bite, is going to make these areas that have lower taxes and lower prices will get some traction.