Property sales have tumbled since March when the city and state shut down to slow the spread of Covid-19. Midtown offices are still largely empty while employees work from home, apartment landlords are struggling to find tenants, and the sales market for co-ops and condos is moribund.
The tax revenue contributes to essential services such as transit repairs, salaries for first responders and maintenance of public parks, meaning “the health of the real estate industry is critical to the health of both our city and state,” REBNY said.
Last year, levies from real estate sales generated $31.9 billion for the city’s operating budget, accounting for 53% of its total tax revenue, according to the report. That’s more than double the next-closest contributor, personal income tax, at 21%.