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NY Rents Are Crashing: What It Means For Homeowners And Your Property Taxes

By Admin
Thursday, July 1, 2021

Rents in NY have been free falling back to historic lows. What impact will that have on neighboring homeowners and your property tax bills?

 

House Buying Fever

 

Since the beginning of the COVID pandemic there has been a highly contagious frenzy to buy homes and a stampede to move out of town to larger properties, in less dense areas. Especially to states which have allowed more freedoms, and have far less crime. 

 

Vacancy rates and all of the interest in buying versus renting have caused NY rents to plummet. In some areas monthly rents have fallen by $700 per month in the past year. With average rents falling all the way back to 2010 prices. Even the Upper East Side has seen rents down by almost 14%. 

 

It’s No Longer A Good Time To Buy A Home

 

Multiple new studies and surveys have recently come out showing that 70% to 80% of those polled no longer think it is a good time to buy a home. 

 

It has just become too expensive and competitive. Inflation at the gas pump, grocery store and in taxes is all making it much harder to afford a home already. Threats of new interest rate hikes and a push to increase inflation make the prospect of making offers on homes even more daunting and filled with uncertainty. 

 

This has already caused Manhattan home prices to almost grind to a halt according to Zillow. That trend may well spread outwards over the next few months. 

 

Low Rents Devalue Properties

 

Lower rents make properties worth less to landlords. In fact, the NY Post and The Real Deals have reported 44% of landlords have been offering concessions to new renters, such as free months of rent and other incentives to lure them back. 

 

Lower rents, especially with all the other landlord restrictions, eviction bans, and hefty new taxes in place means investors will want to pay a lot less for properties, and current owners will have to sell them for a lot less. 

 

That will bring down values, and in turn tax assessments, and should mean lower property tax bills.

 

The same applies to residential homes that people are living in. Should there be a shift back to renting to fill those units,  home prices will come back down. Especially with higher mortgage rates and other inflation hampering house prices and housing affordability. 

 

You Have The Right To Lower Your Tax Bill

 

While these trends should mean authorities lower tax assessments and annual property tax bills, don’t expect them to just hand out these breaks voluntarily. You have to fight for your reduction. Chances are that you are already likely being billed far more than you should every year. It’s your right to challenge and appeal your property taxes, and we will help you do it.

 

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