What you should know about the pied-à-terre tax
Andrew’s Articles
A few fun things that caught my attention this week:
💸 Someone selling their house in SF is accepting very interesting financing. What do you think about this?
🐯Obsessed with the leopard in this collection. Also the subway background is so clever!!
💚 For my Wicked, Ariana, and London fans boy do I have something special for you.
🌆 This skyscraper is on track to become the world’s tallest. I have no words, it’s pretty wild to see the plans.
Your feedback means the world to me! If you enjoyed working with me, I’d greatly appreciate it if you’d write me a review.
Hot Homes
You may or may not have heard about New York’s new tax on second homes. It begins on July 1st, and I've been talking it through with clients and fellow agents nonstop.
It’s complicated, and there are details that still need to be worked out, but the gist is that non-primary residences (pieds-a-terre) valued at $1M or more will incur an additional tax, scaled by value and type (e.g., condo vs co-op).
Here's what’s important to know:
How do they decide what a home is worth? For the first few years, the bill leans on the city’s assessment of value, which is dramatically lower than the open market. Eventually, the plan is to shift to market comps.
Will the market cool? My guess is that we’ll probably see lower activity over the next few months. For some buyers, this is a dealbreaker. For others, NYC is still NYC, and yet another tax isn't scaring them off.
This is for secondary homes only. If it's a primary residence (yours, a family member's, or a tenant's), you're exempt. Proving that is its own challenge.
It's early, and plenty of the fine print is still TBD. I'm keeping a close eye so I can guide you every step of the way. We’ll have more clarity in the fall, and I'll share another update then.
Got questions about your specific situation? Reply and let's chat.
Ask the (Hamptons) Expert 🏖️
Last week, I featured my Hamptons referral partner, Jennifer Friedberg, and the responses were great! I had a few more questions trickle in, so she’s back again answering your burning q’s:
“Traditionally, the Hamptons has very much been viewed as a second home market. That said, we are seeing people spending far more time here. Weekends are extended, stays are longer, and what was once heavily centered around Memorial Day through Labor Day has evolved into a place people can enjoy year-round.
Today, the Hamptons offers an increasingly vibrant year-round energy, although many buyers still split time seasonally between other homes in the winter months—whether for skiing or warmer weather. Buyers want beauty, privacy, outdoor space, and a setting that feels elevated yet relaxed.” - Jennifer
To learn more about the Hamptons market, check out Jennifer on Instagram.
Trivia
How much money is the new pied-a-terre tax expected to raise per year for the city?
$100 M
$500 M
$250 M
The answer is at the bottom of this email!
Listing I’m Lovin’ 🌲🌷
Each of these Park Slope homes has greenery and gardens galore. In the summer months, the abundance of light offers a sense of peace and tranquility. You could even say they offer some much needed respite from our crazy streets 😛
I can’t share yet!!!
5 Bed, 5.5 bath | $5,800,000 | Park Slope | Andrew Pritchard
I can’t share too many details about this one yet, but I’m excited to bring it to market soon. It’s spacious, on a desirable block in Park Slope, and features a roof deck and back patio. I shared a few sneak peek pics on my IG last week. Follow along for more!
Reply if you want any extra info or to share a link when it’s live!
1 bed, 2 bath | $985,000 | Park Slope | Brad Bateman
There’s something about this bright, tranquil home that makes it feel special and timeless. I think it’s because the living and dining area overlooks the gardens and offers a serene retreat from city life. It’s east-facing, so there’s amazing light and incredibly quiet.
3 bed, 2 bath | $2,795,000 | Park Slope | Kristina Leonetti
This home is set in a four-unit condo so you get the intimacy of a boutique residence. Bathed in brilliant northern and southern light, the home has a versatile footprint, offering the flexibility to carve out a fourth room that can serve as a separate home office, guest room, or library. I love the backyard views of cherry blossoms and the enormous oak tree within arm's reach.
To all my Buyers, Sellers, or Renters looking to make moves, let’s make it happen!
I’ll be back in your inbox in two weeks.
P.S. The trivia answer is B), the tax is expected to raise $500M per year.
