Introduction to NYC Real-Estate Revenue
The real estate industry, and especially the commercial sector, remains the main driver of the New York City economy, according to data to be released on Monday by the Real Estate Board of New York.
The trade organization reported that real estate-related tax revenue (RERT) increased to a record high $37 billion in 2024 and is on track to top $50 billion in the next fiscal year.
Real Estate Revenue Growth
RERT revenue far outpaced any other source, totaling nearly 50% of all municipal tax revenue in 2024 — a percentage just slightly under the previous year. In fact, real estate-linked taxes have grown by more than 100% since 2010, compared with an 89% increase in the city budget over the same period.
The Empire State Building and Manhattan skyline are pictured from the Summit at One Vanderbilt observatory in Manhattan. REUTERS
Drivers of Real Estate Revenue
The report’s author, REBNY research head Keith De Coster, noted that the bonanza is driven by commercial real estate, which accounts for 82% of property taxes.
Real estate revenue paid for the total wages and salaries of 280,000 city workers in such departments as the NYPD and Transportation department. Some $5 billion in real estate transfer taxes were earmarked for the MTA’s Capital Lockbox.
Industry Perspective
REBNY president James Whelan said, “Through the pandemic, changing workplace trends and volatile macroeconomic pressures, the real estate sector continues to be the backbone of of New York City’s economy and revenue base.”
Conclusion
In conclusion, the real estate industry continues to play a vital role in driving New York City’s economy, with record-breaking revenue and a significant contribution to the city’s tax base. As the industry continues to evolve, it will be interesting to see how it adapts to changing trends and pressures.
FAQs
What is the current state of NYC real-estate revenue?
The current state of NYC real-estate revenue is at a record high, with $37 billion in revenue in 2024.
What drives the growth of real estate revenue in NYC?
The growth of real estate revenue in NYC is driven by commercial real estate, which accounts for 82% of property taxes.
How does real estate revenue contribute to the city’s economy?
Real estate revenue contributes significantly to the city’s economy, paying for the total wages and salaries of 280,000 city workers and earmarking $5 billion for the MTA’s Capital Lockbox.
What is the outlook for NYC real-estate revenue in the next fiscal year?
The outlook for NYC real-estate revenue in the next fiscal year is positive, with revenue expected to top $50 billion.
