New York City Mayor Zohran Mamdani's pied-à-terre tax is moving ahead. But will it work?

May 12, 2026 - 19:00

New York City is pushing ahead with a controversial new property tax targeting pieds-a-terre, the luxury second homes often left vacant by wealthy out-of-state owners. Mayor Zohran Mamdani's proposal, now included in the city's latest budget negotiations, aims to generate hundreds of millions of dollars annually by taxing high-value apartments used only part-time. The policy is designed to address both the city's affordable housing crisis and its budget shortfall, but critics and existing data from other global cities suggest the plan may not deliver as promised.

Similar taxes already exist in London, Vancouver, and Paris, where officials have tried to discourage empty luxury units. In Vancouver, a vacancy tax introduced in 2017 initially pushed some owners to sell or rent their properties, but enforcement proved costly and revenue fell short of projections. London's council tax surcharge on second homes has also faced loopholes, with some owners simply reclassifying their properties as primary residences. Paris doubled its tax on vacant homes in 2023, yet thousands of luxury units remain empty.

Economists warn that New York's version could face the same pitfalls. Wealthy buyers may absorb the extra cost without changing their habits, or they might shift investments to other cities like Miami or Los Angeles. The tax also risks alienating a group that contributes significantly to the local luxury market and property tax base. Supporters argue the revenue is still worth capturing, especially if it funds affordable housing programs. But as New York moves ahead, the experience of other major cities suggests that taxing the ultra-wealthy's empty apartments is easier to announce than to enforce.