Angry New Yorker

Saturday, April 26, 2003
Still the greatest city in the world? Still one of the most expensive, definitely.
Contrary to the city counsel and Mike Bloomberg, maybe raising property taxes does have an effect on people living in New York City.

According to the New York DailyNews - Your rent bill may be getting bigger
"New Yorkers who live in rent-stabilized apartments had better prepare for sticker shock. Landlord costs skyrocketed 16.9% last year, according to the annual Price Index of Operating Costs (PIOC), which was released yesterday. This is only the second time in 35 years the index - which helps the Rent Guidelines Board determine rent hikes - rose that high. In 1980, the index jumped 17%. Rising property taxes, fuel prices and insurance costs are to blame, according to the report, prepared by board staffers." [more]

But wait. There's more. Here are some stunning cost points from the 2003 Price Index of Operating Costs and 2003 Income and Affordability Study reports from the NYC Rent Guidelines Board:

    * The Price Index of Operating Costs for Rent Stabilized Apartment Buildings (PIOC) increased 16.9% this year.

    * Costs in pre-war buildings increased 18.4% and costs in post-war buildings rose 16.2%.

    * The “core” PIOC, which excludes the erratic changes in fuel oil prices,natural gas, and electricity costs,is useful for analyzing inflationary trends. The core rose by 10.6% this year.
    * Fuel oil costs increased 66.9%,the highest rise in this component in PIOC history.
    * Real estate taxes rose 14.8%, due to the strong rise in assessments and the increase in the tax rate.
    * The Utilities component increased by 21.7% due primarily to sharp increases in natural gas and electricity costs.

    * Insurance Costs grew by 40.5%,the highest increase in this component since 1986.

    * The Price Index of Operating Costs for Rent Stabilized Apartment Buildings is projected to increase 6.4% next year.

And from the 2003 Income and Affordability Study report:

    * NewYork City’s economy shrunk by 2.2% in 2002, compared to 0.3% in 2001.

    * The unemployment rate increased to 7.9% last year, up from 6.1% in 2001.

    * Manhattan saw the largest jump of the boroughs in its unemployment rate, increasing from 6.0% to 8.2% last year.

    * Inflation averaged 2.6% in the metro area in 2002,up slightly from 2.5% in the prior year.

    * Inflation-adjusted wages increased 3.0% in 2002, compared to 6.0% in 2001.

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