NY Real Estate Investments and Residential Sales Decline — RISMedia |
The New York Real Estate Board (REBNY) reported recently Since the beginning of the year, residential real estate investments and sales totaled $ 47.1 billion. This corresponds to a decrease of 46 percent compared to 2019 and a decrease in tax revenue of 36 percent.
New York City and New York State lost a total of $ 1.6 billion in tax revenue in 2020 due to these significant declines in real estate market activity, according to REBNY’s monthly investment and home sales reports.
Tax revenue in New York City was $ 1.9 billion in 2020, a 38 percent decrease from 2019, while the state’s tax revenue in 2020 was $ 785 million, a decrease of 32 percent Percent compared to 2019.
Despite the increase in investment and sales in residential real estate for three consecutive months, REBNY’s report shows that investment and home sales fell to $ 5 billion in December 2020, an 18 percent decrease from November 2020. This was largely due to a 38 percent decline in investment turnover during this period. As a result, tax revenue declined 12 percent from November 2020 to December 2020 to a total of $ 250 million.
From December 2019 to December 2020, total residential investment and sales volume declined 32 percent, and tax revenue from these sales declined 36 percent year over year.
“With this full scope of real estate activity in 2020, we can fully appreciate the devastating economic impact of the COVID pandemic on New York,” said James Whelan, President of REBNY. “Our city and state desperately need a new stimulus package – including state and local aid, rent relief and unemployment benefits – that will appeal to our economy and help all New Yorkers out of this crisis.”
Real estate is the fundamental engine of the New York economy, generating more than half (53 percent) of the city’s total annual tax revenue for the past fiscal year. This is more than double the next contribution – income tax makes up 21 percent of the city’s annual tax revenue.
As of October 2020, REBNY began incorporating the city and state levied mortgage recording tax into total tax revenue. The historical data has been revised based on this newly available information.
REBNY’s monthly investment and home sales report is a compilation of transactional activity for both investment sales and home sales in New York City. REBNY tracks all transactions by asset class on a monthly basis to oversee the economic health of the industry and the impact of the Coronavirus Crisis (COVID-19) on the city and the state’s ability to generate taxes required for essential government services. The report is an analysis of official data from the NYC Department of the Treasury’s Automated City Register Information System (ACRIS) and records total sales volume, number of transactions, and tax revenue.
Download REBNY’s monthly investment and home sales report here.