NYC approves pied-à-terre tax: The Corcoran Group’s Noble Black on the impact on wealthy homeowners

Summary

Noble Black, a real estate broker from The Corcoran Group, discusses the newly approved NYC pied-à-terre tax on second homes. He explains the complex valuation thresholds and the likely impact on wealthy homeowners, noting some buyers have paused but expects most will ultimately accept the tax. He doubts significant price declines and emphasizes the uncertainty around how many will sell or exit the market.

• NYC approved a pied-à-terre tax on second homes valued over $1 million assessed value.
• The tax initially targets assessed values over $1M, corresponding to market values of $8-11M.
• After two years, the tax shifts to true market value with lower rates (0.8-1.3%).
• Some luxury buyers have paused transactions due to the tax.
• Black expects most wealthy homeowners will complain but stay.
• The tax applies to roughly 10,000-11,000 properties, with bulk revenue from about 300.
• He does not believe prices will drop significantly (e.g., 20%).