The most recent assessments conducted by the town of Brookline indicate that property taxes on apartment buildings will rise more than taxes on other types of housing, which could result in increased rents for local tenants.
Ted Costigan, the town’s chief assessor, presented data at a recent Select Board meeting showing that the average assessed value of an apartment building (four units or larger) in Brookline increased by 10% between fiscal years 2024 and 2025, surpassing the growth for single-family homes, condos, and two- and three-family homes.
This Monday, the board authorized new 2025 tax rates that will increase the median tax bill for owners of Brookline’s 356 apartment buildings by little more than 8%. This is Brookline’s largest annual increase in apartment building taxes since 2015.
Residents who live in the home or building that they own are not assessed the full worth of their properties, despite the fact that the Select Board has established the general residential tax rate at $9.87 per thousand dollars of assessed value.
In contrast to the 10% increase that was implemented in 2024, the typical property tax rate for owners of single-family homes will climb by more than 5%.
According to the revised rates that will be in effect in 2025, the owner of a single-family house that has a median assessed value of $2.34 million would be required to pay a total of $19,702 in property taxes.
A median rise in property taxes of around three percent will be imposed on condominium owners. The owner of the typical condo, which is valued at $823,100, will be required to pay $4,704 in taxes.
Those who own homes with two families will have a median increase of one percent, while those who own homes with three families would see a modest drop in their median tax burden. There will be a three percent rise in the median tax burden for landowners of commercial properties.
What will happen as a result of the increased taxes on apartment buildings?
The assessed value of an apartment building is mostly determined by the revenue the facility brings in, according to Costigan, the town’s chief assessor.
“We’re seeing an increase in valuation with lower vacancy, higher rents, and higher net incomes,” he stated.
It’s a complex economic matter exactly how this rise will affect rents in a town where most households are renters. A building owner may also take into account the costs of upkeep and operation, as well as the landlord’s desire to make a profit, in addition to property taxes.
Heineman went on to say that the market will decide how shifting tax rates will affect rental pricing.
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One Select Board member, John VanScoyoc, highlighted the straightforward principle that “rents increase when taxes increase.”
