New York City Weighs Pied-à-Terre Tax on $5M+ Second Homes, Dividing Experts

New York City Mayor Zohran Mamdani and Governor Kathy Hochul unveiled a pied-à-terre tax targeting second homes valued over $5 million, potentially raising up to $500 million to fund city needs. The proposal has split experts: supporters say it taxes non-resident wealth to fund housing and transit, while critics warn it could distort the housing market and broader economy. Reactions range from the Fiscal Policy Institute praising the revenue to economist Gabriel Zucman disputing migration fears and real estate figures warning of price declines, fewer jobs, and wider impacts on homeowners.