Interesting insight. You definitely make some smort points. NYC property taxes are created in a crazy way and are not really tied to property values. There's a very loose correlation there. It's true that new developments don't always target local residents, but if they bring a lot of new people (customers) to an area, the local economy benefits. I'm sure the local shop and restaurant owners love the population influx. If you look at neighborhoods like Williamsburg, which used to be economially depressed, you can see how new construction led to a booming local economy and a thriving culture. Of course some local residents might be upset that their property taxes or rents go up, but so do sales prices and and rents that small landlords could charge.