When you try to soak the rich, the rich always figure out workarounds. The only way you can really soak the rich is to confiscate everything they have, and then either put them in a re-education camp, or kill them. The problem is that you can only do that once, and then not only are you poor, but everyone is poor, and life becomes like China during the cultural revolution, or Ukraine during the Holodomor, or Zimbabwe when it decided it didn’t like being Rhodesia.
Just pass on the cost
I wish I could afford a $100K per month apartment. I would never spend that much but the ability to do so would be nice.
How is that avoiding the tax?
Renters pay the tax. They may pay the tax to the landlord but they still pay the tax.
The outsized rise in rents is precisely related to renters seeking out luxury rental properties and those landlords taking advantage of the increased demand.
Rent by the hour?
Yeah, for truckers!.....😉
Is this just a matter of supply and demand?
I’m not familiar with New York City real estate. But i’ve heard that in the other boroughs of NYC, rentals are a lot more reasonable.
It sounds like you pay a premium price to be in trendy Manhattan neighborhoods. The same thing happens in upscale areas of every city.
So they can rent a nice place for $60K per year, and not pay any property taxes. And if they want to leave, no selling hassles.
Kathy and Abdul will try to nail them another way.
I am originally from New York
I just can’t imagine coming down from my $100K/month rental onto a street where some guy’s illegal halal food truck is blowing smoke into my building lobby, the streets are flooded when it rains, and there’s a homeless guy on the curb who smells like shit and is screaming at passers-by
I don’t care if its even the upper West Side - its simply not worth it.....
It speaks to the economic resilience of New York even under Mamdani.
$100,000 per month???????
“wealthy New Yorkers who could easily afford $20 million or $50 million trophy homes “
What a garbage essay
Mamdani’s way of fixing the affordability crisis.
I'm cynical enough to suspect this is not an unintended consequence.
Before Mamdami's "Pied-à-Terre" tax, NYC already had a "luxury" tax (Mansion Tax) on home sales, and with the drop in sales, revenue will now plummet.
Luxury Transfer Tax ("Mansion Tax")When buying a residential property in NYC for $1 million or more, the buyer pays a sliding-scale transfer tax on top of standard closing costs.$1M to $2M: 1.0% - $2M to $3M: 1.25% - $3M to $5M: 1.5%- $5M to $10M: 3.25% - $10M to $15M: 3.5% - $15M to $20M: 3.8%$25M+: 3.9%
There is no bigger indicator of wealthy people fleeing NYC than an increase in the demand for $100,000 a month apartments.
Check out some of the rental/sales listings here:
https://streeteasy.com/building/255-east-77
It’s a brand new building, fwiw...
they are not renting from the air, someone own those units and is paying the tax.
Wonder if Mamdani will cause fires?.
NYC has 3.7 million housing units. 67% are rental.
41% of rentals are “stabilized” meaning not on the free market.
High percentage are Section 8 subsidized.
Lesser numbers are TANF Temporary Assistance to Needy Families.
Apparently There are other subsidy programs also.
Interesting that the internet has no hard information on the number subsidized.
When one blocks the free market, what could possibly go wrong?