“If this quarter proved anything, it’s that Manhattan buyers remain remarkably confident — but the market is also beginning to show the early effects of the new pied-à-terre tax. While overall contracts climbed to a four-year high, activity above $5 million has softened since the tax was announced, with the sharpest pullback at the ultra-luxury end of the market, suggesting some buyers are already recalibrating as they assess the new landscape.
Even so, demand remains resilient. Luxury buyers are engaged, well-capitalized and ready to act when the right property comes to market. As we look ahead to the second half of 2026, the market will be watching closely to see whether the new tax has a more lasting effect on high-end purchasing decisions. But the defining challenge remains the same: whether enough quality inventory will come to market to meet continued demand.”
