February 28, 2020
Although New York City commercial property sales generally declined year-over-year during 2019, rent-stabilized apartment buildings took the biggest hit. The Real Estate Board of New York’s latest report found that dollar volume for this multifamily class dropped 73% Y-OY, from $5.7 billion to $1.6 billion.
All five boroughs experienced significant declines in both consideration and transactions of rent-stabilized buildings, says REBNY. The decline in rent-stabilized sales resulted in a major decline in transfer tax revenue from the sale of such buildings, which declined by $136 million year-over-year.
“This new analysis is a clear indication that new rent laws will result in less tax revenue for New York City and State,” said James Whelan, REBNY president. “If we want to be a progressive city, we need to be a prosperous one. This report is a sign that it will be increasingly difficult to pay for vital government services.”
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