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Monthly Investment and Residential Sales Report: Snapshot of August 2020
October 14, 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 July to August 2020, REBNY reports declines in transaction activity for both investment sales and residential sales. Total investment and residential sales volume, or consideration, was down 40% in August 2020 from the same time last year, with a 19% decline from July to August 2020. The total tax revenue generated from these sales to the City and State declined 24% from August 2019 to August 2020 and declined 20% from July 2020 to August 2020.
Tax revenue funds NYC’s 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. Last year, real estate taxes generated $31.9 billion for the City’s operating budget, accounting for 53% of NYC’s total tax revenue, more than double the next closest contributor –personal income tax at 21%. The health of the real estate industry is critical to the health of both our City and State.
To read the full report, click here.