New York City Mayor Zohran Mamdani announces a new tax on second homes worth over $5 million, aiming to fund public services, despite the city's ongoing loss of high-income residents to lower-tax states like Florida and Texas.
New York and the UK are implementing new taxes on luxury properties to address the housing crisis and fund public services. While these measures aim to target the ultra-rich, experts suggest they are only a partial solution to broader issues of real estate financialization and monetary policy.
New York is moving ahead with a pied-à-terre property tax in its budget. Existing taxes from around the world's major cities show the limits of the policy.
New York Gov. Kathy Hochul and NYC Mayor Zohran Mamdani announced a proposed 'pied-à-terre' tax on non-primary residential real estate worth over $5 million, expected to raise $500 million annually. However, appraisers and attorneys warn the tax will spark costly legal battles over property valuation, as New York's antiquated property tax system dramatically undervalues co-ops and condos. About 13,000 non-primary homes would be subject to the tax, which still needs state legislature approval.
Citadel criticized New York City Mayor Zohran Mamdani after he singled out CEO Ken Griffin in a video promoting a proposed pied-à-terre tax targeting non-resident homeowners with properties valued above $5 million. The hedge fund's COO called the mayor's move 'shameful,' saying it showed 'ignorance and disdain' toward economic contributors. Citadel noted it has paid nearly $2.3 billion in city and state taxes over five years and is undertaking a $6 billion redevelopment project at 350 Park Avenue.
