The recent increase in property taxes on apartment buildings in Brookline is poised to significantly impact renters in the town. This development follows the latest property assessments conducted by the town, which showed a notable rise in property values for apartment buildings compared to other types of residential properties. The tax hike primarily targets buildings with four or more units, and it’s expected to result in higher rents for tenants as property owners seek to recoup their increased expenses.
Disparity in Property Tax Increases
Ted Costigan, the town’s chief assessor, presented data indicating that the average assessed value of apartment buildings in Brookline grew by 10% between fiscal years 2024 and 2025. This increase far outpaces the growth seen in single-family homes, condos, and two- and three-family homes. As a result, owners of Brookline’s 356 apartment buildings will see their tax bills rise significantly by a median of just over 8%. This constitutes the most significant year-over-year jump in apartment building taxes in Brookline since 2015. The disparity in tax increases has raised concerns among property owners about the sustainability of their investments and their ability to continue providing quality housing.
The overall residential tax rate for 2025 was set by the Select Board at $9.87 per thousand dollars of assessed value. However, owner-occupied houses with three or fewer units benefit from the residential exemption, which deducts $346,536 from the property’s assessed value when calculating taxes. This provides some relief to these homeowners, but apartment building owners do not receive this exemption, leading to a higher tax burden. The exemption aims to reduce the financial strain on homeowners, but it inadvertently exacerbates the tax load on larger properties. This differentiation in tax treatment highlights the challenges faced by property owners in managing their fiscal responsibilities while ensuring their properties remain profitable and viable.
Impact on Renters
The assessed value of apartment buildings is largely based on the income they generate, which means that with lower vacancy rates and higher rents, the valuation of these buildings has increased. Consequently, property owners may pass on these increased costs to tenants in the form of higher rents. John VanScoyoc, a member of the Select Board, emphasized, “When taxes go up, rents go up.” He elaborated that property owners will seek to maintain their return on investment, and the increased costs will likely be borne by the tenants unless landlords choose to absorb these costs themselves. This dynamic sets the stage for potential conflicts between landlords and tenants as the financial strain extends through the rental market.
The anticipated effect on renters is a nuanced and complex issue. While it is clear that higher property taxes can lead to higher rents, the degree to which this happens can vary based on multiple factors, including landlords’ willingness to pass on the costs and the broader rental market conditions. The increase in property taxes on apartment buildings is set against a backdrop of rising property values due to higher incomes generated by these buildings, lower vacancy rates, and higher rents. As these factors interplay, the rental landscape in Brookline is poised for shifts that may affect affordability and tenant stability. Efforts to address these challenges must consider the balance between maintaining the town’s fiscal health and supporting residents facing escalating housing costs.
Broader Economic Trends
Costigan highlighted that the rising assessed property values are influenced by broader economic trends such as a housing shortage, especially in the eastern part of the Commonwealth. This shortage means that demand outstrips supply, driving property prices—and hence valuations—higher. Additionally, unprecedented construction costs over the last five years have further driven up property values. These factors contribute to the increased property tax bills. Property owners and potential buyers alike grapple with the broader economic conditions that inflate property values beyond manageable levels. Addressing these underlying causes requires a comprehensive approach involving multiple stakeholders, including policymakers, developers, and community members.
Recent voter-approved ballot questions to fund town and school services, including the construction of a new Pierce School, have added to the tax burden. For instance, for a single-family home assessed at $2.34 million with a tax bill of $19,702, $1,575 (or 8%) of the bill can be attributed to these ballot measures. These local spending measures, combined with broader economic trends, have created a challenging environment for both property owners and renters. As communities strive to enhance public services and infrastructure, the financial implications of these improvements necessitate careful consideration of their impact on the broader housing market. Establishing a sustainable balance between funding essential services and maintaining affordable housing options remains a key priority.
Policy Mechanisms and Debates
The Select Board has a couple of mechanisms—namely, the residential factor and the residential exemption—at its disposal to shift the tax burden among different categories of property owners. The residential factor allows the board to shift some of the tax burden from residential property owners to commercial owners. On the other hand, the residential exemption provides owner-occupants with a tax break by deducting a portion of their property’s assessed value before taxes are calculated. These mechanisms are important tools in managing the town’s revenue needs while attempting to ensure fair and equitable tax distribution. Policymakers must navigate the complexities of these options to achieve balanced and sustainable outcomes.
During the latest board meeting, these mechanisms were a topic of considerable debate. Town Administrator Charles Carey cautioned against making drastic changes to these mechanisms, warning that such changes could have a destabilizing effect on taxpayers. VanScoyoc suggested lowering the residential exemption, arguing that it disproportionately benefits owners of lower-value homes like condos, whose assessed values might not accurately reflect their owners’ wealth or ability to pay. Conversely, board member David Pearlman proposed raising the residential exemption to 22%, which would shift more tax burden onto apartment building owners. These discussions reflect the ongoing struggle to find consensus on tax policies that address the diverse needs of the community while balancing fiscal responsibility with social equity.
Regional and National Context
The recent rise in property taxes on apartment buildings in Brookline is set to greatly affect the town’s renters. This change stems from the latest property assessments by the town, which revealed a significant increase in property values for apartment buildings as opposed to other residential properties. The tax hike specifically targets buildings with four or more units, and it’s anticipated to lead to higher rents for tenants as landlords attempt to offset their higher costs. Property owners are likely to pass these increased expenses onto renters, meaning the cost of rent will probably rise for many residents. This move could place considerable financial strain on tenants, particularly those already coping with tight budgets. With landlords needing to cover their heightened expenses, the community of Brookline might see a shift in the rental market. The tax increase could potentially discourage new renters from moving to the town and might even result in a turnover of current tenants unable to afford the escalating rents.
