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Monthly Investment and Residential Sales Report: Snapshot of April and May 2020
June 8, 2020
The Real Estate Board of New York (REBNY) is reporting a dramatic decrease in transaction activity for both investment sales and residential sales for April and May 2020. Since Governor Cuomo’s March 7 announcement of a state of emergency in New York due to the Coronavirus (COVID-19) crisis, REBNY has tracked transaction activity on a monthly basis. REBNY is also tracking the tax revenue generated by real estate transactions that is critical to funding essential City and State services.
From April 2020 to May 2020, the data continues to demonstrate that the industry is suffering. In total, investment and residential sales volume are down 75% from May 2019 to May 2020, and down 26% from April 2020 to May 2020. The total tax revenue generated from these sales to the City and to the State are down 76% from May 2019 to May 2020, and down 40% from April 2020 to May 2020.
Last year, real estate related taxes made up 53% of NYC tax revenue, generating a total of $31.9 billion in taxes. Real estate related taxes are more than double the next closest contributor: Personal Income Tax at 21%. Tax revenue funds essential services such as salaries for first responders, building service workers, MTA employees, the maintenance of public parks and vital repairs and maintenance of the public transportation system. The health of the real estate industry is critical to the health of both our City and our State.