Co-op and Condo Tax Assessments Rebound to Pre-Pandemic Levels
Real Estate partner Brett J. Gottlieb spoke to Habitat Magazine about New York's final property tax assessments, which were recently released, and their effect on condominium and cooperative residents. Brett reflected on a prior interview with Habitat Magazine, in which he predicted, "Condos and coops are taxed as comparably situated rental buildings and therefore are directly impacted by vacancy rates and rent reductions. As vaccinations increase and employer mandates to return to work rise, vacancy rates should subside. If they drop sharply, it’s a good assumption that assessed values will resume their upward trajectory."
On the accuracy of his forecast, Brett explained, "It was logic more than anything else[.]" He noted, "It took all the way into the 2021-22 tax year for the pandemic declines in tax assessments and rental values. Now, in 2022, vacancy has declined, rents have precipitously risen, and the city has returned assessments very close to pre-pandemic levels."
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