New York Senator Brad Hoylman recently announced that he plans to reintroduce the pied-a-terre tax in 2020. According to Adam Swanson, an attorney with McCarter & English, changing demographic trends plus a possible recession may compound issues associated with the tax.
“Everything I am reading is suggesting that many New York City millennials are looking for alternatives and moving to smaller cities like Stamford, New Rochelle, and White Plains—which still have the urban appeal but afford a little more space for families,” he said. “If that is true, there will be a greater supply of housing in the city, which should reduce pricing overall. This, coupled with talk of a possible recession could soften the market, and adding a pied-a-terre tax now might only exacerbate a softening market.”