Market is 'still so strong' despite pied-a-terre tax, real estate expert observes

July 7, 2026 - 00:38

The New York City real estate market is proving resilient in the face of a newly approved tax targeting high-end, part-time residences, according to a veteran broker. Noble Black, a managing director at the Corcoran Group, said the market's underlying strength is outweighing concerns about the so-called pied-a-terre tax, which was recently passed by state lawmakers.

Speaking on a financial news program, Black acknowledged that the tax, which imposes higher costs on owners of luxury apartments used as secondary homes, has created some uncertainty. However, he argued that the overall demand for New York real estate remains robust. "The market is still so strong," Black said. "There is a tremendous amount of capital sitting on the sidelines, and people still want to be in New York."

He noted that while some buyers may pause to assess the tax's impact, the city's fundamental appeal as a global hub for business, culture, and lifestyle continues to drive interest. Black also addressed the broader housing bill, suggesting that while new regulations can create short-term friction, they rarely derail a market with such deep-seated demand. The broker's comments come as the city sees a steady flow of transactions, particularly in the high-end segment, where cash buyers remain active and less sensitive to interest rate fluctuations.