It depends on your state's assessment rules. In a state without an assessment cap, rising values nearby can lead to a higher assessment and a higher tax bill over time, since the assessor marks properties toward market value. In a capped state like California under Proposition 13, your assessed value can only rise about 2% a year while you own, so luxury construction next door does not directly reset your bill. Two things worth holding onto: - If reassessment does push your taxes up, your own value usually rose too, and that appreciation is money in your pocket when you sell. We have watched clients who bought before major nearby development, near a new stadium for example, see their values climb dramatically. - Property type matters for comparisons. Multimillion-dollar single-family homes are not a clean comp for a townhome, so even in a non-capped state the effect on your assessment is unlikely to be dollar-for-dollar with those new builds. Check your state and county assessment rules to know which situation you are in. Higher nearby values are usually a tailwind for your equity, not just your tax bill.