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.
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 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.
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.”
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