{"id":319096,"date":"2026-08-12T00:16:09","date_gmt":"2026-08-12T00:16:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/319096\/"},"modified":"2026-08-12T00:16:09","modified_gmt":"2026-08-12T00:16:09","slug":"pied-a-terre-tax-wont-deter-buyers-long-term-developers-say","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/319096\/","title":{"rendered":"Pied-\u00c0-Terre Tax Won’t Deter Buyers Long Term, Developers Say"},"content":{"rendered":"

President Donald Trump has taken aim at Mayor Zohran Mamdani<\/a>\u2019s initiative to levy an extra tax on New York City pieds-\u00e0-terre, which is already embroiled in a bureaucratic tug-of-war in the city’s courts.<\/p>\n

\"Five<\/p>\n

Photo credit: Bisnow\/Ciara Long<\/p>\n

Nixon Peabody\u2019s Erica Buckley, Charney Cos.\u2019 Rosie Tilley, Legion Investment Group\u2019s Sean Zalka, Toll Brothers City Living\u2019s Todd Dumaresq and Peninsula Property Management\u2019s Joel Davis onstage at Bisnow\u2019s 2026 New York Condos event<\/p>\n

Mamdani unveiled a new element of his administration\u2019s \u201ctax the rich\u201d policies<\/a> in mid-April, announcing a new annual charge<\/a> on New Yorkers\u2019 second homes.<\/p>\n

The measure has been challenged in court and dissed by the country\u2019s leader in the past week, leaving potential buyers confused, condo developers and property managers said at Bisnow\u2019s New York Condos event Tuesday. But they don\u2019t expect the policy to have a long-term impact on sales.<\/p>\n

\u201cWe have a lot of people that are upset about it,\u201d Peninsula Property Management President Joel Davis said onstage at Convene One Liberty Plaza. \u201cIt’s definitely a contentious point right now.\u201d<\/p>\n

Under the policy, owners of one-, two- or three-family second homes will face a new 0.8% to 1.3% tax based on their properties\u2019 market values<\/a>.<\/p>\n

Condos and co-ops would be taxed between 4% and 6.5% in the first year, but likely at a lower rate after the city determines the units\u2019 \u201cassessed values,\u201d according to The City Reporter<\/a>.<\/p>\n

Mamdani and Gov. Kathy Hochul<\/a> announced the proposed pied-\u00e0-terre tax<\/a> during the state government\u2019s spring budget negotiations, after months of friction over City Hall\u2019s proposal to impose extra income taxes<\/a> on the city\u2019s top earners \u2014\u00a0a move that would have required state approval.\u00a0<\/p>\n

The pair ultimately agreed that the second homes tax was a reasonable target to fill the city\u2019s budget gap.<\/p>\n

\u201cIf you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker,\u201d Hochul said in a mid-April release<\/a>.<\/p>\n

But the policy has continued to be a source of public consternation<\/a> as the deadline to apply for exemptions, originally in late August<\/a>, but later extended to Sept. 18, has drawn closer.<\/p>\n

\"\"<\/p>\n

Photo credit: Bisnow\/Ciara Long<\/p>\n

Marketproof\u2019s Kael Goodman, Adler & Stachenfeld\u2019s Hillary Potashnick, Grid Group\u2019s Yiannes Einhorn, Avdoo\u2019s Steve Rutter and Elad Group\u2019s Elyse Leff onstage at Bisnow\u2019s 2026 New York Condos event<\/p>\n

Last month, the Mamdani administration published a searchable database<\/a> of the 17,000 residences eligible for the tax, which the Department of Finance told the New York Post it is required to do by state law.<\/p>\n

The decision prompted outrage and concern from residents, who said<\/a> they were notified that they might be subject to the tax in homes that they lived in as their primary residences.\u00a0<\/p>\n

And the past week has provided three fresh twists in the saga.\u00a0<\/p>\n

A trio of homeowners sued to stop the rollout Friday, leading to Staten Island Judge Wayne Ozzi calling for<\/a> a temporary halt to the tax Monday. That pause was stayed almost immediately<\/a> when the city appealed<\/a>, and that was followed by a Tuesday Truth Social post from<\/a> President Donald Trump announcing he was looking for legal avenues for the federal government to intervene.<\/p>\n

\u201cThis dangerous political \u2018experiment\u2019 will destroy what was once a great City and State,\u201d the president wrote, calling the move \u201cpure Amateur Hour.\u201d<\/p>\n

\"Three<\/p>\n

Photo credit: Bisnow\/Ciara Long<\/p>\n

HSF Kramer\u2019s Nicole De Bare, Landau Properties\u2019 Jonathan Landau and Corcoran Sunshine\u2019s Elisa Orlanski onstage at Bisnow\u2019s 2026 New York Condos event<\/p>\n

However, developers onstage Tuesday were skeptical that the policy will hurt NYC\u2019s condo market in the long term.<\/p>\n

\u201cWill it have an impact? Sure,\u201d Toll Brothers City Living<\/a> Vice President of Development Todd Dumaresq said. \u201cBut is it going to be this dramatic rewriting of the market? I’m not so sure. I think New York is resilient and pretty creative, and we will weather this well.\u201d<\/p>\n

The policy confusion does appear to have caused a short-term slowdown during the spring. Second-quarter sales data<\/a> from brokerage Douglas Elliman<\/a> shows the previously red-hot condo sales market in NYC had slowed in the months of uncertainty introduced by the tax proposal.<\/p>\n

The government’s delay in spelling out details caused the market to ebb momentarily, Elad Group Executive Vice President of Marketing & Sales Elyse Leff said.<\/p>\n

\u201cObviously, there was a pause in the market when that was completely unknown,\u201d she said. \u201cNobody was aware of how much it would be and who it would affect.\u201d<\/p>\n

The type of condos going into contract changed in Q2, according to Douglas Elliman. The number of signed contracts in the sub-$1M market grew by 37% quarter-over-quarter. Contracts for properties in the $1M-$3M and the $3M-$5M range tiers grew by 26% and 16.4%, respectively, over the same period.<\/p>\n

Deal volume for properties starting at $10M, meanwhile, declined by almost 27% during Q2 2026.<\/p>\n

\u201cThe resident who maybe a couple years ago was shopping for a $2.5M to $3.5M home, now they’re shopping for a $1.5M to $3M home,\u201d Charney Cos. Head of Development Rosie Tilley said.\u00a0<\/p>\n

\"Six<\/p>\n

Photo credit: Bisnow\/Ciara Long<\/p>\n

Herrick\u2019s Phil Tucker, IMA\u2019s Sophie Bird, The Victoria Owners Corp.\u2019s Corinne Arnold, The Folson Group\u2019s Tina Larsson, FirstService Residential\u2019s Jeff Poirot and Bargold Storage Systems\u2019 Jonathan Travieso onstage at Bisnow\u2019s 2026 New York Condos event<\/p>\n

The upper segment of the condo market had all but frozen by early July, the New York Post reported at the time<\/a>. Only one trophy home valued at more than $10M entered into contract between July 6 and 12, in contrast to the three to five deals of that size that normally enter into contract every week.<\/p>\n

But developers think those deals will return, they said at Bisnow\u2019s event.<\/p>\n

Buyers who pay upward of $10M for apartments aren\u2019t going to think twice, Avdoo Senior Vice President of Design and Marketing Steve Rutter said.<\/p>\n

If there is any segment of buyers who might reconsider, it could be those who are budgeting in the $3M-$5M range, he said, although he thinks that a slowdown is unlikely.<\/p>\n

\u201cIt will get factored into the market,\u201d he said. \u201cIt will take a little while for everybody to accept it, and then it will be business as usual.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"President Donald Trump has taken aim at Mayor Zohran Mamdani\u2019s initiative to levy an extra tax on New…\n","protected":false},"author":2,"featured_media":319097,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[2499,5043,120329,120330,426,9,24,55,54,56,79763,79275,896,120331,120332,120333,32923,82],"class_list":["post-319096","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-condos","tag-douglas-elliman","tag-elyse-leff","tag-joel-davis","tag-kathy-hochul","tag-new-york","tag-new-york-city","tag-new-york-city-headlines","tag-new-york-city-news","tag-ny","tag-pied-a-terre","tag-pied-a-terre-tax","tag-president-donald-trump","tag-rosie-tilley","tag-steve-rutter","tag-todd-dumaresq","tag-toll-brothers-city-living","tag-zohran-mamdani"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/319096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=319096"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/319096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/319097"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=319096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=319096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=319096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}