New REBNY Report Finds Real Estate is New York City’s Largest and Most Reliable Revenue Source

Real estate taxes generate $39.6B, or 49.4% of NYC’s local revenue, more than doubling since 2010.

NEW YORK, NY – The Real Estate Board of New York (REBNY), the City’s leading real estate trade association, today released its latest Invisible Engine report, detailing the critical role the real estate sector plays in funding government services, supporting jobs and maintaining long-term economic stability.

In Fiscal Year 2025, Real Estate Related Taxes (RERT) totaled $39.6 billion accounting for 49.4% of locally generated tax revenue, by far the largest source of funding for the City.

“Real estate is not just part of New York City’s economy, it is the foundation that supports nearly half of the City’s local revenue,” said REBNY President James Whelan. “At a time when other revenue sources are volatile and taxpayers are increasingly mobile, this industry remains the most reliable pillar of the City’s fiscal health. Policymakers should recognize that strength and be careful not to undermine it.”

For the City of New York, RERT includes collections from the real property tax, mortgage recording and transfer taxes, hotel occupancy taxes, and other related sources. These revenues also provide critical support for the Metropolitan Transportation Authority’s operating and capital budgets.

Key findings from the report include:

RERT have more than doubled since 2010, rising from $18.6 billion to $39.6 billion in 2025.

Nearly 90% of RERT ($35 billion) is generated by the Real Property Tax, the City’s most stable revenue source.

New York City’s proposed Executive FY 2027 budget has reached $124.7 billion, roughly double its size in 2010, with continued growth dependent on real estate revenue.

Real estate and construction employ nearly 290,000 New Yorkers, providing key pathways to stable, well-paying jobs without a college degree.

Commercial and multifamily properties continue to anchor the tax base, accounting for 77% of the total property tax levy.

The report also highlights the stability of real estate tax revenue compared to more volatile sources such as personal income tax, which has fluctuated in multiple years since 2010. Property-based revenues, by contrast, have declined only once over that period.

The full report can be downloaded here.