The wealthy keep buying Manhattan real estate despite potential pied-à-terre tax

Luxury real estate sales in Manhattan for properties valued at $4 million or more increased between April 14 and May 10, 2026, according to data from Olshan Realty.

During this period, 133 contracts were signed for apartments priced at $4 million or more, compared to 130 contracts signed during the same period in 2025. The total dollar volume for these transactions rose by 10% to $1.12 billion, Olshan Realty reported.

Market activity was particularly strong at the highest end of the luxury segment. Contracts signed for apartments priced at $10 million or more increased by 80%, totaling 34 contracts.

This growth in sales occurs as the New York legislature considers a proposed pied-à-terre tax. The tax, first proposed on April 15, 2026, by New York Governor Kathy Hochul and Mayor Zohran Mamdani, would be an annual levy on non-primary real estate in New York valued at $5 million or more.

The proposal has led to warnings from business leaders and real estate brokers that a second-home tax could drive away wealthy buyers and reduce their spending in the city.

The last four weeks demonstrates that an impending pied-à-terre tax has had no effect on the luxury market in Manhattan

Donna Olshan, president of Olshan Realty

While current data indicates the market has remained resilient, Olshan noted that the market could shift once the tax is officially imposed.

The proposal has sparked a public battle over the taxation of wealthy residents in New York as the legislation continues to move through the state legislature.