Friday, May 1, 2026, Central Park Tower Center along Billionaires Row in New York, USA.
Michael Nagle | Bloomberg | Getty Images
Luxury real estate sales in Manhattan rose last month despite New York City Mayor Zoran Mamdani’s proposed pied-à-terre tax, which brokers warn could trigger an exodus of wealth, new data shows.
According to Olshan Realty, there were 133 contracts for apartments valued at $4 million or more between April 14 and May 10. This compares to 130 cases in the same period last year. Total sales rose 10% to $1.12 billion, Olshan said.
Sales of ultra-luxury homes remain particularly strong, with the number of deals for apartments valued at $10 million or more increasing by 80% to 34. The strength comes as real estate brokers and business leaders warn that a new second-home tax will drive out New York’s wealthy and their valuable spending.
“The past four weeks have proven that the impending pied-à-terre tax has no impact on Manhattan’s luxury market,” said Donna Olshan, president of Olshan Realty.
Of course, the market could improve if the tax were imposed. But this surge came as a proposed pied-à-terre tax passed the New York State Legislature, sparking a very public and bitter battle over taxing New York’s wealthy.
The tax, first proposed by the City of Mamdani and New York Governor Kathy Hochul on April 15, would impose an annual tax on New York non-primary real estate valued at $5 million or more. Mamdani said the tax would raise $500 million a year in revenue and force part-time New Yorkers to “pay their fair share.”
Real estate agents are lobbying to end the tax in Albany, saying it would harm the market and hurt jobs and tax revenue. Second-home owners in New York already pay property taxes, but they typically don’t use public services like schools or public transportation much.
Pamela Liebman, president and CEO of the Corcoran Group, told The Real Deal last week that Corcoran is “just waiting and watching because so many deals have been paused, especially at the $30 million, $40 million level.”
The tax dispute also became deeply personal after Mamdani announced his proposal in a social media video in front of Citadel CEO Ken Griffin’s apartment.
Griffin, a Miami resident, bought the apartment in 2019 for $238 million, setting a record for the most expensive home sold in the U.S. Citadel is also building a new $6 billion building on Park Avenue and a new headquarters in Miami.
In an interview with CNBC last week, Griffin said he would expand Miami’s workforce over the next 10 years “as an immediate and direct result of the mayor’s poor decision to post that video.” He added that the social media post was “in bad taste”.
A spokesperson for Mamdani said the mayor “wants all New Yorkers to succeed,” but added: “The tax system is fundamentally broken. It rewards extreme wealth while pushing working people to the brink.”
The tax also faces major questions about its implementation and how New York real estate will be valued.
New York’s outdated appraisal system values properties well below market value, leaving a small number of apartments worth more than $5 million. CNBC previously reported that Griffin’s $238 million apartment was valued at $6.99 million by the city, which puts it at just $15.5 million.
Hochul announced last week that he had reached an agreement with parliament on the outline of the national budget, including the pied-à-terre tax. He did not provide further details about the proposal, including rates, timing and rating system.
