(Bloomberg)—New York City is reaping the benefits of a construction boom.
The city set a value of $1.38 trillion for its more than one million properties for the fiscal year beginning in July, a $62 billion increase from the prior period, as the value of new construction reached the highest level in the last 10 years, according to a tentative assessment roll released by the Department of Finance Wednesday.
New construction boosted the market value of city property by $14 billion, more than 20% of the increase in market value. Rental apartments account for $4.4 billion, or about 32%, of citywide construction activity.
“New York City continues growing, and this year’s roll confirms that construction activity remains strong across the five boroughs,” Department of Finance Commissioner Jacques Jiha said in a news release.
Real estate taxes are the largest contributor to New York City’s revenue and the primary source of funds that back its approximately $40 billion of outstanding general-obligation bonds. Citywide assessed values, which determine the value of property for tax purposes, rose 6.7%, to $273.8 billion.
The General Motors Building on Fifth Avenue remains the city’s single most expensive property, valued at more than $1.8 billion. Hudson Yards, a 28-acre development on the Far West Side of Manhattan and the largest mixed-use private real estate project in the country, was valued at $3.7 billion. The World Trade Center complex was valued at $4.4 billion.
Market and assessed values of cooperatives, condominiums and rental apartment buildings rose the most in Brooklyn, increasing 10.4% and 12.5% respectively. Bronx had the biggest increase in market value of 1-, 2- and 3-family homes, rising 9.1%, while Queens residents had the greatest increase in assessed value at 5.7%.
Overall, the market value of city property rose 4.7%, the city said.
To contact the reporter on this story: Martin Z. Braun in New York at [email protected].
To contact the editors responsible for this story: Elizabeth Campbell at [email protected]
William Selway, Michael B. Marois
© 2020 Bloomberg L.P.