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Monthly Investment and Residential Sales Report: Snapshot of June 2020
July 16, 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 May to June 2020, REBNY reports increases in transaction activity for both investment sales and residential sales. While the total investment and residential sales volume were down 51% in June 2020 from the same time last year, there was a 100% increase in sales from May 2020 to June 2020. The total tax revenue generated from these sales to the City and to the State are down 62% from June 2019 to June 2020 and up 56% from May 2020 to June 2020.
Last year, real estate related taxes made up 53% of NYC tax revenue, generating $31.9 billion for the City’s operating budget. Real estate related taxes are more than double the next closest contributor - Personal Income Tax, which accounts for 21% of the City’s annual tax revenue. 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.