NEW YORK CITY — Turns out a once-in-a-century pandemic isn’t the best time to buy a home in New York City.
Residential sales and investment in 2020 dropped 46 percent over the year before, according to a new study by the Real Estate Board of New York.
The $47.1 billion in sales would be impressive for nearly every other city, but still marked a 36 percent decline in tax revenue from already hard-hit state and city budgets, the study found.
“With this full scope of real estate activity in 2020, we can fully see the devastating economic impact the COVID pandemic has had on New York,” James Whelan, the real estate board’s president, said in a statement. “Our City and State are in dire need for the new federal administration to step in with a stimulus package – including state and local aid, rent relief and unemployment benefits – that addresses our economy and helps all New Yorkers out of this crisis.”
President Joe Biden and his congressional allies have pushed for another round of stimulus tagged at $1.9 trillion to buoy the nation’s flagging economy and fight COVID-19.
The promise of a stimulus featured prominently in Gov. Andrew Cuomo’s proposed 2022 budget, which he presented in two parts — one “worst case” with $5 billion in federal, and a “fair” $15 billion to plug the state’s coronavirus deficit.
Mayor Bill de Blasio, while presenting New York City’s own austere proposed 2022 budget, said the city’s property tax revenue dropped $2.5 billion amid the pandemic.
The real estate board study found that declines in real estate market activity sapped $1.6 billion from the city and state.
Read the study here.