Brown Harris Stevens CEO on pied-a-terre effect: This tax is already chilling the NYC market

Brown Harris Stevens CEO Bess Freedman discusses the New York City residential market after the new pied-a-terre tax. She says the tax is already creating seller exits and buyer hesitation, though June and July were strong, and the full impact is too early to call. She also describes a K-shaped housing market where luxury buyers are active while first-time buyers are priced out, with rents at record highs but facing rent freezes and FARE Act policy risks. - Pied-a-terre surcharge is recurring annually, not a one-time tax, causing confusion among owners - Sellers are telling brokers they may sell to avoid the surcharge; some buyers are hesitating - June and July NYC real estate markets were strong, so overall impact remains uncertain - Housing is described as K-shaped: ultra-wealthy buyers active, first-time buyers cannot afford homes - NYC rents are record high, but rent freezes and FARE Act create policy headwinds - Freedman argues the tax feels political and calls for more affordable housing construction