Higher taxes for multifamily property owners could mean higher rents
A new property tax increase for multifamily housing owners means owners need to find a way to make up for their new costs.
In case high building costs and the lack of apartments aren’t enough to explain why your rent is high, here’s yet another reason.
The Boston Globe reported last week that the city of Boston sent out new property assessments that did not look pretty for people who own multifamily buildings.
According to the Globe:
“While single-family homes and condominiums saw their estimated tax bills climb just 1 percent, on average, citywide, owners of two-family buildings saw an 8 percent increase. And three-deckers? 11 percent.’’
So though the properties now have a higher value for the owner, the consequences fall with higher rents for current tenants and higher prices for prospective multifamily homebuyers.
Between the end of 2014 and the beginning of 2015 rents in the Hub have already risen 7 percent, according to a recent report from The Boston Foundation.
The Globe said that these multifamily housing building values have already been increasing and that the new tax increase mirrors that.
Read the full Boston Globe story here.
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