THE INVISIBLE ENGINE: 2016 Economic Impact of New York City’s Real Estate Industry

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ANNUAL TAXES FROM THE REAL ESTATE INDUSTRY [1]

  • $20.4 billion, which is 43% of total NYC taxes collected, is from the real estate industry, including taxes from revenue-generating properties (such as residential rental buildings, office buildings, hotels, retail stores, and utility property; it excludes property and transaction taxes from 1-3 family homes and coop and condo units) and real estate activity
  • The $20.4 billion in annual taxes from the real estate industry increased by 24.4% between FY 2013 and FY 2016; the 43% share of total New York City taxes is 2 percentage points higher than in FY 2013
  • These taxes could pay the City’s entire share of salaries for teachers, police officers, fire fighters, sanitation workers, and corrections officers, with $5.4B left to fully fund numerous City agencies
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TOTAL ECONOMIC IMPACT OF THE REAL ESTATE INDUSTRY [2]

  • $139.4 billion in total economic output in 2015, a 20.1% increase from 2013
  • Approximately 12.5% of Gross City Product (GCP), which is a 0.5 percentage point increase from 2013
  • 606,600 total jobs, a 9.5% increase from 2013
    • 15.3% = the increase in direct employment in the construction industry compared with 2013
  • $45.8 billion in total wages and benefits, a 28.7% increase from 2013
    • 16.6% = The increase in direct wages in the construction industry compared with 2013
  • $75,700 = The average salary and benefits for a worker directly employed in the real estate industry, a 21.1% increase compared with 2013  
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