T
he New York City economy remains heavily reliant on the real estate industry, particularly the commercial sector. According to data from the Real Estate Board of New York (REBNY), real estate-related tax revenue (RERT) reached a record high of $37 billion in 2024 and is projected to exceed $50 billion in the next fiscal year.

    This surge in RERT far surpasses other sources, accounting for nearly 50% of all municipal tax revenue in 2024. Since 2010, real estate-linked taxes have grown by over 100%, outpacing the city's overall budget increase of 89%. Commercial real estate is the primary driver behind this growth, responsible for 82% of property taxes.

    The revenue generated from real estate has significant implications for city finances. It covers the total wages and salaries of 280,000 city workers in departments such as the NYPD and Transportation department. Additionally, $5 billion in real estate transfer taxes will be allocated to the MTA's Capital Lockbox.

    REBNY president James Whelan notes that despite challenges like the pandemic and changing workplace trends, the real estate sector remains a vital component of New York City's economy and revenue base.