New York City is still reaping the benefits of the real estate boom. The city set a value of $1.26 trillion for its more than one million properties for the fiscal year beginning in July, an increase of 9.4 percent over the previous period that promises to boost the government’s tax collections.
Residential and commercial property value in Brooklyn rose 12 percent, the most of New York’s five boroughs, to $335.5 billion, according to the city’s finance department. Manhattan property rose 7.3 percent to $483.6 billion, the slowest growth.
“This year’s roll confirms increases in the real estate market and additional construction activity in New York City, which is not just concentrated in Manhattan,” Jacques Jiha, the city’s commissioner for the department of finance, said in a statement.
Real estate taxes are the largest contributor to New York City’s revenue and the primary source of funds that back its $40 billion in outstanding general-obligation bonds.
The increase follows jumps of 8.7 percent for fiscal 2018 and 10.6 percent the year before. The city plans to collect $27.4 billion in property taxes in fiscal 2019, or about 43 percent of its revenue, according to the city’s November financial plan.
The General Motors Building on Fifth Avenue and Bank of America’s tower on Bryant Park are the city’s most expensive properties, both valued at about $1.94 billion. The Bank of America tower was publicly subsidized by the Liberty Bond program, which granted corporations $8 billion in tax-exempt financing to help the city recover from the Sept. 11 terrorist attacks.
Rental apartments accounted for about 40 percent of citywide construction activity, which totaled $13.3 billion. The trend was most pronounced in Manhattan, where rentals accounted for 36 percent of all construction.
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