02/20/2026
Let's dive into the possible impact on Long Island if New York City & it's mayor moves forward on raising property taxes city wide.
NYC’s proposed 9.5% property‑tax hike would likely push some owners, investors, and renters to look harder at Long Island, increasing demand and keeping LI prices firm, but it would not automatically change LI’s own tax rates.
Quick recap of the NYC proposal. Mayor Mamdani floated a 9.5% across‑the‑board property tax increase on about 3 million residential units and 100,000 commercial properties as a “last resort” to close a budget gap.
The average one‑year increase is estimated around $616–$771 for single‑family homes in the outer boroughs and about $6,693 for the average Manhattan one‑family home.
Likely impacts on Long Island: More buyer spillover from NYC: When city housing costs jump (taxes, rents, or both), higher‑income and move‑up buyers often look to Nassau and Suffolk for relative value and more space; this pattern has repeated during past NYC policy shifts.
Investor reallocation eastward: If returns compress in the city because of higher taxes on owners (especially in rent‑regulated or tightly controlled buildings), investors are more likely to redeploy capital into LI 2–4 families, small multifamily, and “rental‑grade” SF homes near transit.
Support for LI prices despite high rates: Long Island already has tight inventory and rising prices; extra demand from NYC buyers/investors would tend to reinforce price resilience rather than trigger discounts.
Higher rental demand on LI: If landlords pass NYC tax increases through to rents, some renters will get priced out or fed up and look to suburbs, which typically boosts rents and occupancy in LI towns with strong commuter access (Hempstead, Freeport, Patchogue, etc.).
Unlikely to crash NYC overnight: Even with a 9.5% hike, most owners won’t fire‑sale their properties; it’s more a gradual pressure valve that nudges some people to rethink where they live or invest.
This presents a great opportunity to talk to your clients, property & business owners to develop a plan. Not to mention keeping those invaluable communication channels open!
