(ZEROHEDGE) – New York City's structural dependence on property-tax revenue leaves it extremely vulnerable to swings in the real estate market. The new, explosive trend of remote working has resulted in cutbacks to Manhattan office space, along with an exodus of city dwellers to rural communities, both outline the pandemic's toll on city revenues.
According to Blomberg, citing a new report from the Real Estate Board of New York, sales of commercial and residential properties have plunged 49% this year through November, equating to a $1.2 billion loss in tax revenue for the city.
The real estate group said a plunge in sales this year has resulted in a 42% decline in city tax revenue compared to 2019. This means Mayor Bill de Blasio will soon have to tighten the city's fiscal belt as turbulence in commercial and residential markets will produce lower tax revenue through 2021.
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