The Mamdani effect? Manhattan luxury just posted its best quarter in years
Melissa Cohn, regional vice president at William Raveis Mortgage in New York, told MPA the pattern was familiar.
“Remember when the mansion tax started, and everyone said people aren’t going to buy, and this is a problem, and it’s going to ruin the real estate market? And nothing really happened,” Cohn said.
“The mass exodus never happened.”
At the very top of the market, the math explains why. For properties above $25 million, the pied-à-terre surcharge amounts to an effective rate of just 1.3%, according to a separate Real Deal market analysis.
The New York City Comptroller estimates the tax will generate between $340 million and $380 million annually, below the $500 million projection cited by Mamdani and Governor Kathy Hochul.
