REBNY’s Special Report Highlights Long Road to Economic Recovery; Underscores Need for Smart Policies and Federal Aid
NEW YORK, NY – The Real Estate Board of New York (REBNY), the City’s leading real estate trade association, today reported that while total investment and residential sales volume increased 11% from June 2020 to July 2020 to more than $3.95 million, these transactions, critical to New York City’s economy, decreased by 52% compared to the same time last year.
July was the second consecutive month that investment and residential sales activity increased since the start of the Coronavirus pandemic — a positive sign that the industry is inching towards recovery. According to REBNY’s Monthly Investment and Residential Sales Reports, sales activity and the accompanying tax revenue generated hit a bottom point in May and have slowly begun to climb the past two months as New York continues to make public health strides.
“As New York State continues to successfully manage the ongoing public health crisis, we must also focus on managing the ongoing economic crisis using strong leadership and smart, thoughtful policymaking based on data,” said REBNY President James Whelan. “As tax revenue remains at historically low levels, federal relief in the form of state and local aid, expanded unemployment insurance and effective management of municipal affairs are critical to saving New York from further economic harm.”
As a result of this month-to-month increase in sales activity, tax revenue generated from investment and residential sales increased 16% from June 2020 to July 2020 to $119 million. However, this represents a 46% decrease in tax revenue generated compared to July 2019, a more than $101 million loss in tax revenue for the City and State year-over-year.
The real estate industry, which serves as the fundamental driver of New York City’s economy, generated more than half (53%) of the City’s total annual tax revenue in the last fiscal year, which is more than double the next closest contributor – personal income tax, which accounts for 21% of the City’s annual tax revenue.
Other key findings from REBNY’s monthly special report on investment and residential sales include:
From June 2020 to July 2020, total investment sales volume declined 14% to $1.3 billion. This represents a 57% decline year-over-year.
Investment sales transactions increased 21% to 211 from June 2020 to July 2020. However, this represents a 35% decline year-over-year.
From June 2020 to July 2020, total residential sales volume increased 29% to $2.7 billion. However, this represents a 50% decline year-over-year.
Residential sales transactions increased 17% to 2,568 from June 2020 to July 2020. However, this represents a 37% decline year-over-year.
REBNY’s Monthly Investment and Residential Sales Report is a compilation of transaction activity for both investment sales and residential sales in New York City. REBNY is tracking all transactions by asset class on a monthly basis to monitor the economic health of the industry and the impact of the Coronavirus (COVID-19) crisis on the City and the State’s ability to generate taxes needed for essential government services. The report is an analysis of official data from the NYC Department of Finance’s Automated City Register Information System (ACRIS) and captures total sales volume, number of transactions and tax revenue.
For more information about REBNY research reports, visit go.rebny.com/Reports.
# # #
ABOUT THE REAL ESTATE BOARD OF NEW YORK
The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association. Founded in 1896, REBNY represents commercial, residential, and institutional property owners, builders, managers, investors, brokers, and salespeople; banks, financial service companies, utilities, attorneys, architects, and contractors; corporations, co-partnerships, and individuals professionally interested in New York City real estate. REBNY conducts research on various civic matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes, and other city, state, and federal legislation. REBNY regularly publishes market data, policy reports, and broker surveys. In addition, REBNY provides for its members: informational, technical, and technological resources; networking and charitable service opportunities; qualifying and continuing education courses; professional education programs, seminars, and designations; career-changing awards; legal advice; and a wide range of additional member benefits. For more information, please visit www.REBNY.com.