Recently released assessments point towards a 9% property value increase in the 1.06 million properties located through New York City. As a result of this increase, New York City real estate taxes are expected to have a noticeable hike.
Because of the substantial increase in property value, the New York City real estate market now sits at a cumulative value of $988.3 billion. While value increases are normal, the latest is quite significant. By comparison, last year’s increase was just 6.6%.
How Much More Will Homeowners Pay in New York City Real Estate Taxes?
The average increase that people will be responsible for paying depends on the type of property they own. The Department of Finance projects that those who own a single-family home can expect to pay an additional $228 this year.
If that doesn’t sound too bad, it’s because it is definitely less than the increased amount that co-op and condo owners will be paying. There are two reasons that co-op and condo owners are on the hook for higher amounts.
The first reason is that the market value of these properties increased by a full 10.86%. And the second reason is that both co-op and condo buildings are assessed at a higher tax rate.
What Tax Bill Increase Can Co-Op and Condo Expect to See?
As a result of the fact that co-op and condo buildings saw an even greater increase in value, as well as are assessed at a higher tax rate, owners in this category will see a more significant tax increase. New York City real estate taxes for co-op owners will go to $448, while the Department of Finance projects condo owners to experience an average hike of $838.
In Manhattan, the average increases will be even more substantial. Manhattan co-op bills will see an average rise of $817, while property tax bills for condos will have an average of $1,150 added to them.
Differing Views on These Increases in New York City Real Estate Taxes
Out of all the properties in New York City, which will see the greatest tax increase? The answer is single-family townhouse owners in Manhattan, who will pay an average of $2,131 more this year.
In terms of the impact of these increases, there are two very differing views. While the de Blasio administration said that the increases are a great sign because of their direct link to rising property values, plenty of city lawmakers feel that the current system for assessing property taxes is far from ideal.
If you’re already a property owner in New York City, the above information will help you properly plan for the upcoming year. And if you’re thinking about buying a home, co-op or condo in New York City, be sure to get our free Home Buyers Handbook.
The Home Buyers Handbook covers New York City real estate taxes in detail, as well as everything else you need to know about purchasing property in this competitive and often confusing market.