A recent story in the New York Times article highlighted one reason that the real estate burden on existing rental buildings keeps going up: new buildings don’t pay their fair share of taxes.
The case in point is a new luxury condo development to rise in the new Brooklyn Bridge Park. Instead of paying real estate taxes, the new development will pay a PILOT (payment in lieu of taxes) that will fund the maintenance of the park. So as the City budget continues to increase, those increases are passed on to the existing stock of rental properties. And as real estate taxes on existing increase, rents that were once affordable slowly become unaffordable—and landlords bear the blame.