UPDATE – FEBRUARY 23rd.

ASI just released an updated assessment list and the Jersey City Revaluation picture is starting to become clearer. As expected real estate taxes are skyrocketing Downtown – particularly in Paulus Hook, Van Vorst Park, and Hamilton Park.  Greenville the Westside, and other less gentrified areas are seeing significant tax relief.

Page 176 tells the story of Paulus Hook quite well, just look at all of the $10k+ tax increases.  203 Washington is seeing taxes go from ~$13.5k to nearly $50k – ouch!

So what does this mean for Downtown Jersey City property values?  While it’s clearly “not good”, the full magnitude of the impact remains to be seen.  The reval is hitting at the same time as tax reform and rising interest rates, so we have 3 significantly negative factors at play.  Do your research and speak with your accountant on the recent tax reform legislation.  For many of us who have historically enjoyed SALT deductions far above $10k, the large decrease in withholdings due to the lower bracket rates, could prove to be a mirage –  we may end up writing Uncle Sam a big check next spring – plan accordingly!

For these reasons, I believe we’ll see continued signs of a slow-down for non-tax abated properties in Downtown Jersey City in the coming months (more analysis is on the way with our January 2018 market recap); however, the peak impact is likely to be felt in the spring and summer of 2019 when the full combined force of the tax reval and the $10K SALT deduction cap will be measured.