{"id":3983,"date":"2026-09-06T23:44:09","date_gmt":"2026-09-06T23:44:09","guid":{"rendered":"https:\/\/www.vaultinsider.top\/?p=3983"},"modified":"2026-09-06T23:44:09","modified_gmt":"2026-09-06T23:44:09","slug":"pied-a-terre-tax-pushes-wealthy-buyers-into-manhattan-luxury-rentals","status":"publish","type":"post","link":"https:\/\/www.vaultinsider.top\/?p=3983","title":{"rendered":"Pied-\u00e0-terre tax pushes wealthy buyers into Manhattan luxury rentals"},"content":{"rendered":"
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Nest Seekers CEO Eddie Shapiro explains what is driving Manhattan\u2019s soaring luxury rents and how the pied-\u00e0-terre tax is changing the market.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
Manhattan\u2019s luxury rental market is breaking records, with some apartments now going for more than $100,000 a month as New York City\u2019s pied-\u00e0-terre tax gives wealthy buyers another reason to rent instead.<\/p>\n
But Nest Seekers International CEO Eddie Shapiro has a blunt message for anyone shocked by the jaw-dropping prices.<\/p>\n
“Don\u2019t be upset if someone else can afford to do that and chooses to do that,” Shapiro told Fox News Digital. “They\u2019re entitled to do that in this free world, free economy. It\u2019s called capitalism. That\u2019s what it is.”<\/p>\n
Seven times as many Manhattan apartments are renting for more than $100,000 a month compared with last year, while rentals above $50,000 have more than doubled, according to market data cited by CNBC.<\/p>\n
MAMDANI RIPPED OVER RECORD-HIGH NYC RENTS WITH CRITICS POINTING TO POLICY THEY SAY IS FUELING CRISIS<\/strong><\/p>\n
Luxury real estate CEO Eddie Shapiro says soaring NYC rents reflect strong demand, inflation and a new pied-\u00e0-terre tax that could push some wealthy buyers toward renting.<\/span> (iStock \/ iStock)<\/span><\/p>\n<\/div>\n<\/div>\n
The average rent for the top 10% of the market jumped 35% over the past year to $17,464 a month, or about $121 per square foot annually. Manhattan\u2019s median rent also hit a record $5,295 in July, up 6% from a year earlier, according to a Corcoran Group market report.<\/p>\n
The surge is unfolding as the city rolls out its new pied-\u00e0-terre tax on high-end homes that are not an owner\u2019s primary residence. The policy covers one- to three-family homes with market values above $5 million, as well as certain condos and co-ops with assessed values above $1 million.<\/p>\n
The rollout has already sparked a court fight. Three homeowners sued the Mamdani administration, arguing the city wrongly forced New Yorkers to prove they live in their homes instead of first determining which properties should be hit with the tax.<\/p>\n
The city sent initial notices to about 17,000 property owners. A lower-court judge temporarily stopped officials from moving forward based on the disputed notices and a much larger property roll, but an appeals court later allowed the process to resume while the legal battle continued.<\/p>\n
“I continue to believe that the pied-\u00e0-terre surcharge will raise $500 million on an annual basis,” Mamdani said in August. “And the importance of this tax is that it is one that will ensure that our streets are cleaner, that our city is safer, that our schools are more supported.”<\/p>\n
MAMDANI\u2019S LUXURY-HOME TAX GETS NEW LIFE AS APPEALS COURT LIFTS ROADBLOCK IN HOMEOWNER FIGHT<\/strong><\/p>\n
New York City Mayor Zohran Mamdani speaks at a news conference and rally at a Manhattan union headquarters on June 25, 2026.<\/span> (Spencer Platt\/Getty Images \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n
For some wealthy buyers, the looming bill is changing the math. Renting allows them to keep their primary residence elsewhere while avoiding the new surcharge and other costs that come with owning a multimillion-dollar Manhattan apartment.<\/p>\n
NEW YORK CITY LANDLORDS WARN AMERICAN DREAM IS SLIPPING AWAY UNDER SOCIALIST RENT POLICIES<\/strong><\/p>\n
Shapiro agreed the tax is “certainly a factor,” but said it is adding to a shift that was already underway rather than creating the six-figure rental market on its own.<\/p>\n
“This is a natural progression of rent, inflation, the state of the economy, New York City and demand,” Shapiro said. “The tax certainly plays somewhat of a role in it, but we were seeing rents in New York upwards of six figures as far back as 2019, 2020 at the top end of the market.”<\/p>\n
MAMDANI\u2019S LUXURY-HOME TAX ROLLOUT DERAILED FOR NOW AS JUDGE DELIVERS WIN TO NYC HOMEOWNERS OVER MASSIVE LIST<\/strong><\/p>\n
Eddie Shapiro, founder and CEO of Nest Seekers International, discussed Manhattan\u2019s surging luxury rental market and the impact of New York City\u2019s pied-\u00e0-terre tax.<\/span> (Nest Seekers International \/ Fox News)<\/span><\/p>\n<\/div>\n<\/div>\n
He stressed that those prices apply to a very small slice of the market.<\/p>\n
“You\u2019re talking about towers. You\u2019re talking about 5,000- to 10,000-square-foot apartments that are one of a kind in their particular micro-markets and specific buildings that command those rents,” he said. “It\u2019s not every building.”<\/p>\n
But there are cheaper options for renters willing to give up the prime address.<\/p>\n
“You don\u2019t have to spend $120,000 a month, but you\u2019re also not going to be 15 steps from Central Park,” Shapiro said. “You might have to get on a subway.”<\/p>\n
Shapiro said wealthy clients feel the tax differently depending on the price range. Buyers at the very top often have enough cash to absorb it, while those shopping in the $5 million to $10 million range may take a harder look at interest rates, property taxes and monthly building costs.<\/p>\n
MAMDANI\u2019S LUXURY-HOME TAX ROLLOUT DERAILED FOR NOW AS JUDGE DELIVERS WIN TO NYC HOMEOWNERS OVER MASSIVE LIST<\/strong><\/p>\n
Brownstone apartments in Manhattan, New York City, United States of America on July 6th, 2024.<\/span> (Beata Zawrzel\/NurPhoto\/Getty Images \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n
The booming stock market and artificial intelligence have also created a new wave of millionaires looking for New York homes, Shapiro said. Some prefer to keep their cash invested and rent for greater flexibility.<\/p>\n
He said it is still too early to tell whether the pied-\u00e0-terre tax will permanently change the market. Owners are deciding whether to raise rents, declare New York their primary residence or take on tens of thousands of dollars in additional taxes.<\/p>\n
“In some cases, it\u2019s definitely a conversation when you\u2019re sitting with owners and they\u2019re deciding, \u2018Wow, I just got another $40,000, $50,000 a year tax bill. What do I do? Can I increase the rent? Do I stay in here? Do I declare this now New York is my primary residence?\u2019” he said.<\/p>\n
MARK PENN: SOCIALIST MAMDANI SOLD A TAX ON BILLIONAIRES. REGULAR HOMEOWNERS COULD PAY THE PRICE<\/strong><\/p>\n
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Premier Estate Properties senior luxury Realtor Margit Brandt explains how wealthy buyers from high-tax states like New York are paying cash for multi-million dollar homes in Florida on ‘Varney & Co.’<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
Despite the rush to rent, Shapiro remains a strong supporter of buying. Renters may spend less in the short term, he said, but owners have a chance to pay down their mortgage and build wealth.<\/p>\n
“At some point, people will sit there and start questioning themselves: \u2018Why am I paying all of this money every month to someone else\u2019s benefit? Why don\u2019t I do that and at least gain back some of that equity?\u2019” he said.<\/p>\n
Shapiro also pushed back against predictions that taxes, crime or political uncertainty will drive wealthy residents out of New York for good. People leave during difficult periods, he said, but others are always waiting to take their place.<\/p>\n
He recalled a headline published after the Sept. 11 terror attacks predicting that New York would never build another high-rise.<\/p>\n
‘WE’RE TAXING THE RICH’: NYC MAYOR MAMDANI TOUTS NEW $500M-A-YEAR TAX ON LUXURY SECOND HOMES<\/strong><\/p>\n
\u00a0The sun sets across midtown Manhattan, the Empire State Building, and the Statue of Liberty in New York City on April 26, 2026, as seen from Bayonne, New Jersey.\u00a0<\/span> (Gary Hershorn\/Getty Images \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n
“Since then, we\u2019ve built countless of them, and we\u2019ve recovered,” Shapiro said. “We have a tendency to recover, as always, faster than before. It\u2019s just the greatest city in the world.”<\/p>\n
Shapiro believes wealthy renters will eventually return to the sales market as interest rates ease and money made from technology, AI and future public stock offerings flows into real estate.<\/p>\n
Asked what headline he expects to see a year from now, Shapiro did not hesitate.<\/p>\n
“The market is on fire,” he said. “The sales market is hitting new records and new highs.”<\/p>\n
His advice to buyers is not to wait until the market is booming again.<\/p>\n
CLICK HERE TO DOWNLOAD THE FOX NEWS APP<\/strong><\/p>\n
“When you think that things are a little bit rough, now is the time to get in,” Shapiro said. “You don\u2019t want to wait until it gets hot again, and now you\u2019re in bidding wars.”<\/p>\n
“New York is alive and well,” he added, “and it\u2019s not going anywhere.”<\/p>\n<\/div>\n
Nest Seekers CEO Eddie Shapiro… <\/p>\n","protected":false},"author":1,"featured_media":3984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[787,641,529,2961,4855,5048,227,3992],"class_list":["post-3983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-buyers","tag-luxury","tag-manhattan","tag-piedaterre","tag-pushes","tag-rentals","tag-tax","tag-wealthy"],"yoast_head":"\n
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