New York City’s real estate is tied to the financial center in Wall Street. The co-dependence between the two entities has been shown by the cities rising real estate costs in the face of a national decline. But the gravy train that is Wall Street may be coming to an end by the tightening credit markets caused by the national real estate tightening.

The New York economy is more dependent than ever on high Wall Street incomes, which have jumped by more than half since 2001, to an average of $387,000, according to the city comptroller’s office.

Last year, the finance industry was responsible for nearly a third of all wages earned in the city, the highest in modern times. And each Wall Street job supports three workers in other sectors. via the New York Times

The pain may already be felt as real estate taxes for February and March are below their forecasted levels and city services are already starting to cut back. The MTA is dependent upon real estate transfer taxes to fund part of it’s services and announced cut backs in their train services as a result.

The shortfall was chiefly caused by a sharp drop in taxes from real estate transactions, transportation authority officials said. They held out hope that if finances improve by the summer, they could go ahead with the improvements.

“They obviously couldn’t deliver on the promises they made at the time the fare went up, and that’s unfortunate, and it will make people very skeptical about future announcements,” said Gene Russianoff, the staff lawyer for the Straphangers Campaign, a rider advocacy group. via the  New York Times.

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