The Real Estate Board of New York is set to release data showing that the real estate industry, particularly the commercial sector, remains a crucial driver of the New York City economy. According to the report, real estate-related tax revenue (RERT) reached a record high of $37 billion in 2024 and is projected to exceed $50 billion in the upcoming fiscal year.
In 2024, RERT revenue accounted for nearly 50% of all municipal tax revenue, a slight decrease from the previous year. The growth in real estate-linked taxes has outpaced the city budget, with a more than 100% increase since 2010 compared to an 89% increase in the city’s budget over the same period.
Commercial real estate plays a significant role in driving this revenue, making up 82% of property taxes. The revenue generated from real estate taxes contributes to funding the wages and salaries of 280,000 city workers, including those in departments such as the NYPD and Transportation department. Additionally, $5 billion in real estate transfer taxes are designated for the MTA’s Capital Lockbox.
REBNY president James Whelan emphasized the resilience of the real estate sector, stating that it continues to serve as the backbone of New York City’s economy and revenue base despite challenges such as the pandemic, changing workplace trends, and economic uncertainties.
The data released by the Real Estate Board of New York underscores the vital role that the real estate industry, particularly the commercial sector, plays in driving economic growth and generating revenue for the city. As the industry continues to evolve and adapt to changing circumstances, its contribution to the city’s economy remains paramount.
