Manhattan luxury real estate sales risedespite pied-à-terre tax
Central Park Tower, center, along Billionaire’s Row in New York, USA, on Friday, May 1, 2026.
Michael Nagle | Bloomberg | Getty Images
Sales of high-end real estate in Manhattan rose last month, new data shows, despite a tax proposal that New York City Mayor Zohran Mamdani warned could lead to a flight of wealth from brokers.
Between April 14 and May 10, 133 contracts were signed for apartments priced at $4 million or more, according to Olshan Realty. This compares with a figure of 130 in the same period last year. Total dollar volume increased 10% to $1.12 billion, Olshan said.
Sales at the top level remain particularly strong; Contracts signed for apartments priced at $10 million or more increased by 80%, reaching 34 contracts. The push comes as real estate agents and business leaders warn that a new second-home tax will wipe out New York’s wealthy and their valuable spending.
“The last four weeks show that the upcoming tax has no impact on the luxury market in Manhattan,” said Donna Olshan, president of Olshan Realty.
Of course, the market may change once the tax is implemented. But the increase comes as a proposed local tax has passed the New York legislature, triggering an extremely bitter and bitter public battle over the taxation of the wealthy in New York.
The tax, first proposed by Mamdani and New York Gov. Kathy Hochul on April 15, would be an annual tax on non-prime real estate in New York valued at $5 million or more. Mamdani said the tax would create a $500 million increase in annual revenue and force part-time New Yorkers to “pay their fair share.”
Real estate agents have lobbied to halt the tax in Albany, saying it would hurt the market, hurt jobs and tax revenues. Second home owners in New York already pay property taxes, but they often don’t use many public services like schools or public transportation.
Pamela Liebman, President and CEO of the Corcoran Group, said: The Real Deal “There’s a lot of deals that are on pause, especially at the $30 million, $40 million level, they’re just wait and see,” Corcoran said last week.
The battle over the tax also became deeply personal after Mamdani announced his proposal. social media video In front of Citadel CEO Ken Griffin’s apartment building.
Griffin, who lives in Miami, broke the record for the most expensive house sold in the USA by purchasing the apartment for 238 million dollars in 2019. Citadel is also building a new $6 billion building on Park Avenue, as well as a new headquarters in Miami.
In an interview with CNBC last week, Griffin said he would expand his workforce in Miami over the next 10 years “as an immediate and direct result of the mayor’s poor decision here regarding releasing this video.” He added that the social media post was in “bad taste”.
Mamdani’s press secretary said the mayor “wants all New Yorkers to succeed” but “the tax system is fundamentally broken. It rewards extreme wealth while pushing working people to the brink.”
The tax also faces big questions about enforcement and how to value New York properties.
New York’s outdated appraisal system values properties well below market value, leaving few apartments worth $5 million or more. Griffin’s $238 million apartment is assessed by the city at $6.99 million and is worth just $15.5 million, CNBC previously reported.
Hochul announced last week that he and the legislature had reached agreement on the broad outlines of the state budget, which includes tax. It did not disclose any details about the offering, including rates, timing and valuation system.
