Manhattan’s luxury real estate market ground to a halt last week, with just one trophy home priced above $10 million entering contract, as brokers say Mayor Zohran Mamdani’s anti-wealth rhetoric and the city’s new pied-a-terre tax are spooking affluent buyers.
Between July 6 and July 12, only one eight-figure-plus home found a buyer, according to Olshan Realty’s weekly luxury market report. That marked the weakest week for Manhattan’s $10 million-plus market since late December. Normally, between three and five properties at that price point enter contract per week.
The broader luxury market showed more resilience. Twenty-nine Manhattan homes priced at $4 million or more went into contract during the same period, including 19 condos, six co-ops, and four townhouses. Twenty of those 29 deals involved homes asking less than $6 million, suggesting demand remains solid at the upper-middle tier even as the very top of the market falters.
The lone trophy deal was for a condominium at 1122 Madison Avenue with an asking price of $21.8 million. The next-priciest signed contract was a Chelsea condo asking just under $10 million.
Compass broker Victoria Shtainer, who works with international buyers and luxury condominium developments, told The Post the slowdown reflects growing unease among wealthy purchasers over New York’s political direction. She said the luxury buyer is backing off and thinking twice, adding that affluent buyers are increasingly scrutinizing whether New York remains attractive for second-home ownership.
Jonathan Miller, founder of appraisal firm Miller Samuel, offered a more measured view. He said the weakness at the top end is consistent with second-quarter trends showing the market above $10 million is down, while the segment just below is up. He described it as almost a shift in the mix. Miller cautioned against reading too much into a single week’s data, noting that Wall Street compensation and tech-sector wealth remain strong.
Miller said there is no specific evidence that wealthy buyers are leaving New York faster because of the new administration. However, he acknowledged that uncertainty surrounding implementation of the pied-a-terre tax may be driving the pause. A comptroller report earlier this year suggested the tax may not raise its projected $500 million and could cost the city millions.
The pied-a-terre tax notices were sent to owners of luxury second homes starting August 30. While summer is typically a slower season, Shtainer said the latest numbers were not this slow, and similar softness has appeared in the Hamptons market, which is closely linked to Manhattan.
