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New York

Industry’s economic kick-in to city is huge: REBNY study

Tax revenue from sector comprised 38% of NYC base in 2012, data show

From left: Steven Spinola and Andrew Cuomo (Credit: Steve Friedman)
From left: Steven Spinola and Andrew Cuomo (Credit: Steve Friedman)

The Real Estate Board of New York unveiled a report yesterday that breaks down how big a player the industry is in the city’s economy. The more than 15 percent in tax revenues collected from the real estate industry in 2012 comprises roughly 38 percent of the tax base in the city, the report found.

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The real estate sector was responsible for providing more than 360,000 jobs that year. Non-construction activity produced $6.3 billion in indirect economic benefits, the Wall Street Journal reported. Park Avenue consulting firm AKRF was tapped to compile the research for the report, called “The Invisible Engine: The Economic Impact of New York City’s Real Estate Industry.”

“By allowing these larger, more modern buildings to go up and allowing residential [buildings] and hotels to go up generates funds for city services,” REBNY’s president, Steven Spinola, told the Journal. “The hope is that the public will understand that development is not a negative. Good responsible development results in not just wonderful architecture and jobs but an income stream for the city.” [WSJ] — Mark Maurer

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