London’s housing crash is a cautionary tale for NYC as Mamdani eyes second-home tax
London's luxury housing market has cooled significantly due to taxes on second homes, with property values dropping over 20% since 2015 and sales transactions plunging 31.2% in February. New York City's proposed pied-à-terre tax, championed by Mayor Zohran Mamdani, may trigger a similar exodus of wealthy homeowners.
London's luxury housing market has been severely impacted by taxes on second homes, with property values dropping over 20% since 2015. Sales transactions in prime London neighborhoods plunged 31.2% in February compared to the previous year, while average prices fell 10%. The number of transactions for homes priced above $6.8 million collapsed nearly 55% year-over-year. International buyers, who once made up nearly half of homeowners in prime London neighborhoods, are now looking to lower-tax markets like Dubai and Barcelona. New York City's proposed pied-à-terre tax may have a similar effect, with critics warning it could trigger an exodus of wealthy homeowners. The tax's projected revenue is disputed, with estimates ranging from $200 million to $500 million annually.
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