Every January, the City of New York releases its annual tentative tax roll based upon Department of Finance ("DOF") valuations for each property in the five boroughs. Unless successfully challenged, these valuations are the basis of tax bills sent out the following June. Behind the headlines, each tax roll contains interesting nuggets that indicate the direction of New York City's real estate market – at least from the DOF perspective. The main headline for the 2026 fiscal year ("FY26") is that the total market value of all New York City properties has increased 5.7% to 1.579 trillion dollars – a significant increase from the mere .07% growth in FY25. According to the DOF Commissioner, this significant growth is attributable to robust growth in the residential real estate market and a marked increase in office to residential conversions. (Read more here: press-release-fy26-tentative-assessment-roll)
Digging a little deeper into the numbers yields the fact that Class 1 (1-3 family) property values were estimated by DOF to have risen 5.8% citywide, with Staten Island showing the greatest increase at 7.8%. Class 2 (cooperatives, condominiums & rental apartment buildings) saw a total increase of 7.3%, with Brooklyn leading the boroughs with a market value increase of 9.4%. Class 4 (Commercial) properties had a total market value increase 3.8%, with Brooklyn leading the way with a 6.3% increase. Perhaps the most interesting finding by the DOF is that the much-maligned NYC office market may have finally turned the corner. In the DOF's opinion, the total market value of NYC office buildings is up 2.7% for FY26.
Of course, these macro numbers are composed of thousands of micro numbers for individual properties that make up the new NYC tentative tax roll. Since each individual property has its own story, every owner should carefully check their property value on the DOF website (https://www.nyc.gov/site/finance/property/property-assessments.page) and consider contacting a knowledgeable attorney to file a challenge before the March 1, 2025 filing deadline.
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