The goal of this isn't simply to raise revenue, it's also to discourage parking money in empty properties when it's one of the most expensive cities to live in and doesn't have enough housing
Is that really needed when the homeowner vacancy rate is 1.3% in the New York-Newark-Jersey City MSA?
Historically NYC housing used to be a lot more affordable before they stopped building, reducing supply relative to demand and thereby raising prices.
https://www.huffpost.com/entry/new-york-city-immigrants_n_44...
studies typically conclude that immigrant populations do contribute to housing demand (duh), but the labor supply they bring to services market (e.g. childcare, retail) lowers the cost of those services by a more-than-commensurate amount. so the total cost of living goes down for "natives."
Yes. And that's impossible to fix.
> Historically NYC housing used to be a lot more affordable before they stopped building, reducing supply relative to demand and thereby raising prices.
Demand will _always_ outstrip supply. And there's no such thing as "affordable housing", it's a contradiction like "hot liquid helium". If housing sells, then it's affordable for _somebody_.
What you're talking about is subsidized housing in some form. Like rent control or housing projects.
Economics 101 would beg to disagree.
> And there's no such thing as "affordable housing", it's a contradiction like "hot liquid helium". If housing sells, then it's affordable for _somebody_.
Incorrect. Housing can be sold to a buyer that won't use it for housing. Like the dog protecting the manger full of food it can't eat, affordable housing can be removed from the market by investors, tax vehicles, and so forth.
This is going to raise property taxes for everyone.
The ultra wealthy can just pack up and move. It doesn't affect them in the slightest.
But in two years when the property tax overhaul is complete, the middle class will foot the bill. As per usual.
https://www.msn.com/en-us/money/companies/new-york-passes-ma...
"While the tax seems large, experts say the city's antiquated assessment and valuation system dramatically undervalues properties, reducing the burden. City valuations can often be 10% or less of the true market value, they said.
Rather than overhaul the system immediately, the city will gradually update valuations – and the tax – according to the budget documents. Starting in the 2028-2029 tax year, the property values will be based on comparable sales. Since valuations will skyrocket, the tax rates will fall to compensate."
this is, at minimum, a 10% increase in ALL property taxes. And the people most affected will be the lower and middle class.
> this is, at minimum, a 10% increase in ALL property taxes
If they're ~10x'ing the erroneously low valuation to true them to market value, then that would be more than a 10% increase.
>> Since valuations will skyrocket, the tax rates will fall to compensate
But as the article points out, this is an expected outcome and will be blunted by subsequent tax rate decreases.
All things equal, undervaluing properties for tax purposes isn't fair, although it may be politically (corruptly) popular.
the tax rate decrease will be on the multi-million dollar homes.
not on the new property tax valuations of everything else.