NYC Targets Empty Second Homes for Revenue Boost, Not a Quick Housing Fix
New York City is weighing a tax on pieds-à-terre over $5 million owned by nonresidents that could raise about $500 million a year to close the city’s budget gap and fund affordability efforts. Because NYC’s vacancy rate is already near a 50-year low (about 1.4%), the plan—affecting roughly 13,000 units—likely won’t unlock much housing supply and appears driven more by revenue than a direct housing relief push. Other cities and countries with vacancy taxes (Berkeley, DC, Vancouver, Paris) show mixed results and enforcement challenges, suggesting NYC’s measure could boost revenue while prompting some owners to reconsider ownership in the city.