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Monthly Investment and Residential Sales Report: Snapshot of July 2020
August 19, 2020
The Real Estate Board of New York (REBNY) has tracked transaction activity as well as the tax revenue generated by real estate transactions on a monthly basis since March 7, when Governor Cuomo announced a state of emergency in New York due to the Coronavirus (COVID-19) crisis. REBNY has increased the frequency of its reporting in an attempt to understand the impact of the crisis not only on the industry but also on the City and State budgets.
From June to July 2020, REBNY reports increases in transaction activity for both investment sales and residential sales. While the total investment and residential monetary sales volume, or consideration (sales volume), was down 52% in July 2020 from the same time last year, there was an 11% increase in sales from June to July 2020. The total tax revenue generated from these sales to the City and State declined 46% from July 2019 to July 2020 but increased 16% from June 2020 to July 2020.
Last year, real estate related taxes made up 53% of NYC tax revenue, generating $31.9 billion for the City’s operating budget – more than double the next closest contributor of 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 State.