Gregory Heym is Chief Economist at Brown Harris Stevens. His weekly series, The Line, covers new developments to the economy, including trends and forecasts. Read on for the latest report and subscribe here to receive The Line in your inbox.
The NYC Department of Finance has released its assessment roll for the upcoming fiscal year, which begins on July 1. Here’s a summary of the changes in market values by tax class from the current year:
For those who aren’t sure, here is what’s in each tax class:
Class One – 1-3 family homes
Class Two – All other residential property (condos, co-ops, rental buildings)
Class Three – Property owned by utility companies
Class Four – All other commercial property (office buildings, stores, hotels)
After falling by 5.6% last year, the total market value of all property in the city rose 8.2% to just under $1.4 trillion. Class-four properties saw the biggest increase in market value (+11.7%), followed by class two (+8.7%).
Here are the changes in market value by borough:
Brooklyn saw dramatic market value increases from FY2021/22 for large residential properties—buildings with more than 10 units—with condo values up 20.83%, and co-ops 16.38%. Another interesting finding was that the market value for large co-ops in Manhattan rose by 8.35%, compared to a 5.07% increase for condominiums. Remember that as per NYS law, the city must value co-ops and condos by using rental comparable, instead of sales prices. I could go on all day about interesting findings from the DOF’s report, but to spare those who are not so interested, I’ll just post a few helpful links: FY 2023 Assessment Roll Summary Comparison of FY 2022/23, 2021/22, and 2020/21 Values Here you can look up the tentative values for individual properties. Check out the Notice of Property Value, which gives an estimated tax for the upcoming year by multiplying the proposed taxable assessed value for next year, by the current tax rate.
Omicron Halts Return of Manhattan Office Workers
The Partnership for New York City conducted a survey of major Manhattan employers between January 10 and January 18, 2022, and found the following:
75% of employers have delayed the return of workers to the office due to the Omicron variant.
34% of companies reinstated mask mandates
22% of companies closed the office to non-essential employees
10% suspended in-person meetings
7% suspended business travel
5% stopped permitting guests in the office
There was some optimistic news, as 61% of employers expect their average daily office attendance to exceed 50% by the end of the first quarter. So far, the return of Manhattan office workers has fallen well short of expectations. Let’s hope that for once we can exceed them, as the city’s economy desperately needs the boost. At 8.8%, NYC’s current unemployment rate is more than double the national rate of 3.9%.
Congratulations to Willie O'Ree, a True Pioneer
Very happy to close out this article with a great tribute to a great man. Willie O’Ree, the first Black player to play in the NHL, will be awarded the Congressional Gold Medal. This is the highest award Congress can give a civilian, and the 86-year-old O’Ree is certainly deserving of the honor. He also just had his number retired by the Boston Bruins, and is a member of the Hockey Hall of Fame. Congrats to you, Willie!