Monthly Investment and Residential Sales Report: Snapshot of March and April 2020

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The Real Estate Board of New York (REBNY) is reporting a dramatic decrease in transaction activity for both investment sales and residential sales for March and April 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. As tax revenue generated by real estate transactions are critical to our City and State, REBNY is tracking all revenue generated by each asset class and transaction. From March 2020 to April 2020, the statistics are alarming and demonstrate that the industry as a whole is suffering.

In total, investment and residential sales volume are down 60% from April 2019 to April 2020, and down 65% from March 2020 to April 2020. The total tax revenue generated from these sales to the City and to the State are down 48% from April 2019 to April 2020, and down 64% from March 2020 to April 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.