Pied-à-terre tax pushes wealthy buyers into Manhattan luxury rentals

Manhattan’s luxury rental market is breaking records, with some apartments now going for more than $100,000 a month as New York City’s pied-à-terre tax gives wealthy buyers another reason to rent instead.

But Nest Seekers International CEO Eddie Shapiro has a blunt message for anyone shocked by the jaw-dropping prices.

“Don’t be upset if someone else can afford to do that and chooses to do that,” Shapiro told Fox News Digital. “They’re entitled to do that in this free world, free economy. It’s called capitalism. That’s what it is.”

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.

MAMDANI RIPPED OVER RECORD-HIGH NYC RENTS WITH CRITICS POINTING TO POLICY THEY SAY IS FUELING CRISIS

Luxury real estate CEO Eddie Shapiro says soaring NYC rents reflect strong demand, inflation and a new pied-à-terre tax that could push some wealthy buyers toward renting. (iStock / iStock)

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’s median rent also hit a record $5,295 in July, up 6% from a year earlier, according to a Corcoran Group market report.

The surge is unfolding as the city rolls out its new pied-à-terre tax on high-end homes that are not an owner’s 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.

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.

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.

“I continue to believe that the pied-à-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.”

MAMDANI’S LUXURY-HOME TAX GETS NEW LIFE AS APPEALS COURT LIFTS ROADBLOCK IN HOMEOWNER FIGHT

New York City Mayor Zohran Mamdani speaks at a news conference and rally at a Manhattan union headquarters on June 25, 2026. (Spencer Platt/Getty Images / Getty Images)

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…