Posted on 09/02/2026 7:56:40 AM PDT by Libloather
Manhattan’s wealthiest residents just found a new way to dodge Mayor Zohran Mamdani’s pied-à-terre tax: Don’t buy at all.
The city’s luxury rental market is shattering records as wealthy New Yorkers who could easily afford $20 million or $50 million trophy homes are choosing to rent instead, brokers say, a trend accelerating since the new tax on high-value second homes took effect.
Manhattan median rents hit $5,295 a month in July, a record high, up 6% compared with last July and unchanged from June’s plateau, according to a Corcoran Group report obtained by The Post, with the average rent citywide up 10% year-over-year to $6,555.
But the real action is at the top.
The average price for luxury rentals, the top 10% of the market, soared 35% over the past year to $17,464 a month, or roughly $121 per square foot.
The number of apartments renting for more than $50,000 a month has more than doubled compared with 2025. Units renting for more than $100,000 a month are up sevenfold.
“The $100,000-a-month number is almost normal now,” Laura Klein of Bespoke Real Estate, who recently brokered a Chelsea penthouse rental for $177,000 a month, told CNBC. “These are renters who want turnkey, unique, trophy properties.”
Two recent examples — a four-bedroom, five-bathroom penthouse in Tribeca at 161 Hudson St. just hit the market for a whopping $99,000 per month, listed with the Deborah Grubman Team at Corcoran. And a duplex penthouse with sweeping views overlooking Central Park at 988 Fifth Ave. listed for $95,000 per month, listed with Noble Black of Corcoran.
(Excerpt) Read more at nypost.com ...
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“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%
NY is another planet.
Then get your ass stabbed while low hurdling over turds on your way to work.
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.
MMM, 🤔. Ok! Put the expensive housing in LLC, rent to five friends. We each get two months in NYC! Problem solved.
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?
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