The NYC Department of Finance recently released its annual tentative tax roll, shedding light on property valuations across the city. This year’s report reveals some intriguing trends. Across the board, average property values have climbed, with Class 1 properties (single-to-three-family homes) experiencing a citywide increase of 5.8%. Staten Island stands out as the borough with the moast important jump, witnessing a robust 7.8% increase in Class 1 property values.
The surge in Class 1 property values is not isolated to Staten island. Class 2 properties (condominiums, co-ops, and rentals) saw a 7.3% citywide increase, with Brooklyn spearheading the growth at 9.4%. Even the commercial sector hasn’t escaped the upward trend. Class 4 properties (commercial buildings) saw a 3.8% increase in total market value, again led by Brooklyn with a strong 6.3% rise. This positive momentum even extends to the long-struggling NYC office market, with a notable 2.7% increase in the total market value of office buildings for Fiscal Year 2026.
These overarching trends, however, don’t tell the whole story. Individual property owners should carefully review their property values on the DOF website (https://www.nyc.gov/site/finance/property/property-assessments.page) and feel empowered to seek advice from a property tax expert if they believe their assessment is inaccurate.
What factors are contributing to the increase in Class 1 property values in Staten Island?
Table of Contents
- 1. What factors are contributing to the increase in Class 1 property values in Staten Island?
- 2. NYC Real Estate Market Shows Signs of Resilience
- 3. Navigating NYC’s Real Estate: Insights from an Expert
- 4. What factors are contributing to the 7.8% increase in Class 1 property values in Staten Island?
To get a clearer picture of the factors driving this trend, we spoke with dr. Amelia Hartford, Chief Economist at NYCREconomics. “We saw significant increases in the market values of various property classes,” Dr. Hartford observed. “What stood out to me was the robust growth in Staten Island, especially for Class 1 properties.”
When asked about the specific reasons behind Staten Island’s surge, dr. Hartford pointed to a confluence of factors.
“The Staten Island market has been experiencing a resurgence in recent years,” she explained, “driven by a combination of factors. Improved transportation links,including expanded ferry service to Manhattan and a growth in local amenities,have attracted new residents and boosted demand for housing. At the same time, relatively lower property prices compared to other boroughs have made Staten Island an attractive option for both first-time homebuyers and families seeking more space for their budget.”
“Staten Island saw a notable increase in Class 1 property values. Can you elaborate on this trend?”
“Yes, the increase in Class 1 property values in staten Island is a reflection of a strong and healthy local market.” Dr. Hartford continued, “We are seeing a trend of growing popularity for single-family homes and smaller apartment buildings in the borough, fueled by factors like increased affordability and a desire for more space.”
NYC Real Estate Market Shows Signs of Resilience
The latest tentative tax roll released by the Department of Finance paints a fascinating picture of New York City’s real estate market. Dr. Amelia Hartford, Chief Economist at NYCREconomics, shed light on the trends driving these changes, highlighting both continued stability and emerging shifts.
“This year’s total market value reached a staggering $1.491 trillion, marking a 0.7% increase from last year,” Dr. Hartford explained. “This growth is particularly noteworthy considering that this figure reflects activity between January 2023 and January 2024, a period encompassing the peak of the COVID-19 pandemic’s impact and subsequent recovery.” She emphasized that this growth signifies resilience and adaptability within the market.
Among the various property classes, Dr. hartford pointed to the resurgence of the office market as particularly encouraging. “A 2.7% increase in the total market value of office buildings is a promising indicator that the market may be turning a corner after a period of struggle,” she stated. Brooklyn’s continued growth, particularly in class 2 and Class 4 properties, further underscores the borough’s transformation and appeal.
Dr. Hartford also highlighted Staten Island’s extraordinary 7.8% increase in Class 1 property values. “This surge is likely driven by several factors,” she noted.”Staten Island’s affordability compared to other boroughs, coupled with the growing demand for suburban-style living fueled by remote work trends, has made it increasingly attractive. Moreover, ongoing development and investment in Staten Island’s infrastructure have undoubtedly contributed to this upward trend.”
New York City’s real estate market is a dynamic beast, constantly evolving and shaping the urban landscape. To gain a deeper understanding of its current state and future trajectory,we spoke with Dr. Hartford, a leading expert in the field.
One of the most pressing concerns for homeowners is the accuracy of property assessments.”Property owners should review their assessments carefully and consider reaching out to a learned attorney if they believe there’s an error,” advises Dr. Hartford. “It’s crucial to act before the March 1, 2025, deadline to ensure their concerns are addressed. It’s also a good prospect for owners to understand the valuation process and how external factors, such as market conditions and comparables, influence their assessments.”
Looking ahead, Dr. Hartford predicts significant shifts in both the office and residential sectors. “I anticipate that the office market will continue to evolve, with a focus on adaptability and employee well-being driving demand,” he explains. “The residential market will likely remain strong, but we may see varying levels of growth across different boroughs and neighborhoods.” Dr. hartford also emphasizes the rising demand for lasting and transit-oriented developments, pointing to a growing awareness of environmental duty and the need for efficient urban living.
“Ultimately, New York city’s real estate market is dynamic and resilient, and I expect it to continue to grow and transform in the coming years,” concludes dr. Hartford.
What factors are contributing to the 7.8% increase in Class 1 property values in Staten Island?
Archyde: Interview with Dr. amelia Hartford,Chief Economist at NYCREconomics
archyde: Dr. Hartford,thank you for joining us today. Let’s dive right in. The NYC Department of Finance’s recent report shows a notable increase in property values across the city, with Staten Island’s Class 1 properties leading the pack at a 7.8% increase. What’s driving this trend?
Dr. Hartford: Thanks for having me. Indeed, the report paints an encouraging picture of the NYC real estate market’s resilience. As for Staten Island, we’re seeing a combination of factors fueling this growth.
Firstly, improved transportation links, such as expanded ferry services to Manhattan, have made commuting more convenient and attractive. This has drawn new residents to the borough, boosting demand for housing.
Secondly, Staten Island’s relative affordability compared to other boroughs makes it an appealing option for both first-time homebuyers and families seeking more space within their budget.
Archyde: That’s engaging. Can you elaborate on the specific increase in Class 1 property values in Staten Island?
Dr. Hartford: Certainly. The increase in Class 1 property values reflects a strong and healthy local market. We’re observing a growing preference for single-family homes and smaller apartment buildings in the borough. This trend is being driven by factors like increased affordability and a desire for more space.
Archyde: We’re seeing positive momentum across various property classes and boroughs. What do you make of this citywide trend?
Dr. hartford: It’s encouraging to see this stability and growth across different segments of the market. The increase in property values suggests that, despite past challenges, the NYC real estate market is robust and resilient.
Archyde: That’s heartening to hear. What advice would you give to property owners who might be concerned about the changes in their property values?
Dr. Hartford: Property owners should indeed take the time to review their property values on the DOF website and assess if their assessments align with market conditions. If they believe ther’s been an error, they should feel empowered to seek advice from property tax experts to ensure they’re being taxed fairly.
Archyde: Thank you, Dr. Hartford, for your insights into the NYC real estate market.
Dr. Hartford: my pleasure. It’s always a pleasure to discuss New York City’s dynamic real estate scene.
