Will new tax on ultra-luxury NYC homes derail red hot demand?
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New York Governor Kathy Hochul is backing a proposed annual tax on high-end second homes in New York City, which could generate $500 million annually. The tax may cool demand for ultra-luxury properties, but is unlikely to derail the market.
New York Governor Kathy Hochul is supporting a proposed annual tax on high-end second homes in New York City. The tax would apply to properties valued above $5 million, with higher rates for properties exceeding $15 million and $25 million. Lawmakers estimate it could generate $500 million annually and affect around 13,000 properties. The real estate industry has pushed back, warning it could weaken the economy and reduce construction jobs. However, a real estate broker expects most wealthy buyers to adjust financially, negotiating harder on prices rather than abandoning New York. The ultra-luxury market remains strong, with pending sales jumping 200% in the most recent weekly period.
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