NYC Real-estate-related revenue hit record $37B last year

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NYC Real-estate-related revenue hit record B last year — NYC Real estate related revenue hit record 37B last year.jpg

The Real Estate Industry Drives New York City’s Economy

New data released by the Real Estate Board of New York reveals that the real estate industry, particularly the commercial sector, remains the primary driver of the New York City economy.

In 2024, real estate-related tax revenue (RERT) reached a record $37 billion and is projected to exceed $50 billion in the next fiscal year, according to the trade organization.

RERT revenue accounted for nearly 50% of all municipal tax revenue in 2024, a percentage just below the previous year. Since 2010, real estate-linked taxes have grown by over 100%, surpassing the 89% increase in the city budget during the same period.

The Empire State Building and Manhattan skyline are pictured from the Summit at One Vanderbilt observatory in Manhattan. REUTERS

According to Keith De Coster, the author of the report and head of REBNY research, commercial real estate accounts for 82% of property taxes, driving the revenue surge.

Real estate revenue funds the wages and salaries of 280,000 city workers in departments like the NYPD and Transportation department. Additionally, $5 billion from real estate transfer taxes supports the MTA’s Capital Lockbox.

James Whelan, president of REBNY, stated, “Through the pandemic, changing workplace trends, and volatile macroeconomic pressures, the real estate sector remains the backbone of New York City’s economy and revenue base.”