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Property Taxes: The Largest Line, and Still Climbing

Co-op assessments are tied to the value of comparable rental apartments in the neighborhood, so rising rents can push a building’s assessed value up even when sale prices are flat. A Council of New York Cooperatives & Condominiums review of co-op operating costs found real estate taxes rose roughly 20% between 2019 and 2024. Early this year, the city also floated an additional 9.5% property tax increase as a fallback if a proposed wealth tax didn’t move forward. Whether or not that happens, boards are better served modeling a range than a single number. And don’t leave savings on the table: eligible buildings need to file for the Co-op and Condo Property Tax Abatement by February 15.

Electricity and Gas: Smaller Increases, Locked In for Three Years

In January, the New York Public Service Commission approved a three-year Con Edison rate plan. Average residential electric bills are set to rise about 3.5% to 3.9% in 2026, roughly 3.2% to 3.3% in 2027, and about 3.1% to 3.2% in 2028, depending on usage. Gas is rising faster: 4.4%, 5.7%, and 5.6% over the same three years. Building-wide and common-area accounts can fall under different rate classes, so ask your managing agent to apply your building’s actual tariff — but the direction is clear: plan for steady annual increases, not a one-time bump.

Labor: A New Four-Year Contract Sets the Pace

In April, the Realty Advisory Board and 32BJ SEIU reached a new four-year agreement covering doorpersons, porters, handypersons, and superintendents at thousands of residential buildings. The owners’ group puts the weighted average annual wage increase at 3.48% over the life of the contract, and the deal keeps employer-paid health benefits with no premium sharing. For staffed buildings, payroll is often the biggest operating expense, so these increases belong in the baseline, not the contingency line.

One More Line to Watch: Insurance

The same CNYC review found insurance had the steepest percentage increase among co-op operating costs — roughly 120% from 2019 to 2024. Start renewal conversations early and get competitive quotes, rather than accepting a renewal at face value.

Small Steps Beat Big Jumps

Because most of a building’s budget is fixed costs, there’s limited room to cut once the year begins. Modest, predictable increases in maintenance or common charges each year are usually easier on owners than deferring and absorbing a large jump later — especially when paired with a steady reserve contribution, so capital needs don’t turn into emergency assessments.

• Mayor’s Budget Gambit Sets Up Albany Showdown — and Property Tax Squeeze — Habitat Magazine
• Co-op and Condo Operating Cost Report — Council of New York Cooperatives & Condominiums
• 2026–2028 Rate Hikes Approved for Con Edison — News 12 New York
• Contract Agreement Averts Strike by 34,000 Building Service Workers — Habitat Magazine

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