April 19, 2025
As someone in the real estate industry, it’s always validating to see data that confirms what we experience on the ground every day: real estate isn’t just about buying and selling properties—it’s the engine that keeps New York City running.
In 2024, New York City's real estate-related tax revenue soared to a record-breaking $37 billion, according to the Real Estate Board of New York (REBNY). That's nearly half of all municipal tax revenue, reaffirming that real estate—particularly the commercial sector—continues to be the backbone of the city’s economy.
This isn’t a one-off surge. Since 2010, real estate tax revenue has more than doubled, even outpacing the city’s overall budget growth. Commercial properties are leading the charge, making up 82% of all property tax contributions.
That includes office buildings, retail spaces, warehouses—you name it. It's a clear signal that despite shifting work trends and economic uncertainty, NYC’s commercial landscape remains resilient.
Here’s another way to look at it: the taxes generated by real estate last year were enough to cover salaries for 280,000 city workers, including departments like the NYPD and Department of Transportation. And on top of that, $5 billion from transfer taxes went directly toward improving our transit system through the MTA Capital Lockbox.
As REBNY president James Whelan put it, “the real estate sector continues to be the backbone of New York City’s economy and revenue base.” Whether you’re an investor, homeowner, developer, or tenant—this underscores just how vital our industry is to the city's future.
And with projections pushing revenue beyond $50 billion in the near future, there’s no sign of a slowdown. For anyone considering getting into the NYC market—now’s a great time to understand your role in this massive ecosystem.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
