From my long observation of the Brooklyn real estate market, it seems that while home prices are rising quickly, the burden of property taxes has been increasing at a relatively moderate pace. This is due to New York City's unique assessment method, which often leaves Korean families new to this structure wondering why the market value is close to $1 million, yet the taxes are not that high.

Brooklyn's 1-3 family homes are also subject to Class 1, resulting in an effective tax rate of about 0.6-0.9% relative to market value. However, since the median home price in Brooklyn is around $900,000, even with a low effective tax rate, the absolute amount of property tax can still reach about $6,700 to $7,000 annually.

Home insurance premiums tend to be somewhat high, ranging from $1,600 to $2,200 annually, reflecting the flood risks in some coastal areas like Coney Island. The unique risks of fire or theft in urban areas are also factored in.

Maintenance costs are often based on the age of Brooklyn's housing stock, which is typically older, and it is realistic to estimate these at about 1.75% of the home value. For a $900,000 home, this translates to about $15,000 to $16,000 annually, and historical buildings like brownstones often incur higher renovation costs due to exterior preservation regulations.

When all these costs are summed up, the total annual ownership cost is approximately $24,000 to $25,000. While the effective tax rate is lower than in suburban areas like New Jersey or Westchester, the high home prices mean that the absolute burden is still significant.

The Class 1 cap system, along with STAR, Enhanced STAR, and SCHE reductions for low-income seniors, also applies equally to Brooklyn homeowners. Particularly for properties purchased recently, the assessed value often lags behind the market value, resulting in a lower effective tax rate for several years.

Compared to Manhattan, the ownership costs in Brooklyn are definitely lighter, but they are somewhat heavier than in the outer areas of the Bronx or Queens. Ultimately, it is reasonable to approach Brooklyn with a balanced perspective, recognizing that while it benefits from the Class 1 cap system, the overall cost of living remains substantial.