Q2 2026 · Market Report
The Daniel Kramp Team Update
Dear Clients and Friends,
As we move into the third quarter, there is no shortage of headlines creating uncertainty around the New York real estate market.
Between the proposed pied-à-terre tax, which we break down in this report, the rent “freeze” affecting nearly 2 million rent-stabilized apartments, and the ongoing conversation around mortgage rates, it is easy to find reasons to worry — or at least reasons to pause.
But after nearly 20 years in this business, I have seen New York go through very different markets: the recession, the peak years of 2015 and 2021, and even COVID, when we were not allowed to show homes at all. And while the headlines may change, two things remain consistent.
First, life does not stop. Most buyers and sellers are not trying to perfectly time the market. They are making decisions because life is moving forward — they need more space, they are downsizing, relocating, helping their children or grandchildren buy their first home, or simply looking for a place that better fits the next chapter.
Second, buyers today are more educated and more selective than ever. They are looking carefully at value, monthly carrying costs, condition, building financials, and long-term upside. If the value is not there, they are not forcing it.
That does not mean people have stopped believing in New York. Quite the opposite. Buyers are still betting on New York as a long-term store of value — not because real estate is about quick gains, but because over time, it remains one of the most meaningful ways to build wealth, create stability, and have a home that feels like a true sanctuary.
As you will see in this report, we do our best to provide a clear picture of the overall state of the market. But as I often say, averages never tell the full story. Every neighborhood, building, and price point has its own nuance. The only true way to understand what is happening in each area and each segment of the market is to have real boots on the ground — and that is our goal: to help make sense of the numbers, the headlines, and what they may mean for you.
As always, I welcome a call, a question, or a conversation anytime.
Looking forward to catching up soon,
Daniel and the Team
By the Numbers
Q2 Manhattan Market
Market-Wide | |
3,186 | $1,604 |
Luxury ($4M+) | |
413 | $2,672 |
New Development | |
311 | $2,306 |
Q2 Brooklyn Market
Market-Wide | |
1,245 | $1,209 |
Luxury ($4M+) | |
78 | $1,813 |
New Development | |
226 | $1,530 |
In Focus
The New Pied-à-Terre Tax Explained
A new annual tax on NYC apartments just became law. If you own a place in the city that isn’t your main home, here’s what you need to know.
First, What Is a Pied-à-Terre?
A pied-à-terre is French for "a foot on the ground" — in real estate terms, it simply means a second home. Say someone who lives in Florida or Connecticut but keeps an apartment in Manhattan.
If that sounds like you — or someone you know — keep reading.
Who Is Most Likely to Be Impacted?
Simply put: if you own a place in NYC but it isn’t where you actually live, and it’s above a certain value — you may owe an extra annual tax.
Right now, that threshold is:
- 1–3 family homes valued at $5 million or more
- Condos & co-ops with Department Of Finance market valuations exceeding $1 million
Condo/Co-op Threshold | 1–3 Family Threshold |
Condo/Co-op Rate (Phase 1) | Home Rate (Both Phases) |
The Biggest Misconception The tax is NOT based on your purchase price. It's based on the DOE (Department of Finance) assessed value — which for condos and co-ops is often a fraction of what the property actually sold for or is worth. |
Why Is This Creating So Much Attention?
For ultra-luxury properties, the numbers get serious fast.
A penthouse at 111 West 57th Street — listed at $42.5M — already pays around $246,000 a year in property taxes.
Under this law, the owner could owe another $247,000 or more. Every year. Just for not living there full-time.
What About Co-Ops & The Valuation Gap?
Co-ops work differently — the whole building gets one tax bill. That means if a handful of owners aren’t living there full-time, the board has to figure out how to pass those costs along. It’s a headache the law doesn’t fully reserve yet.
Are There Exceptions?
You may be off the hook if the apartment is rented to someone who lives there full-time, or if a family member — spouse, child, sibling, parent — uses it as their primary home.
The Bottom Line
Most New Yorkers won’t feel this at all. But if you own a high-value apartment that isn’t your main home, this law changes the math, and it’s worth understanding before it becomes a reality.
Also worth knowing: city assessments are expected to rise over the next two years to better reflect real market values. That means the tax bill for some owners could grow significantly after 2028.
Beyond the City
Welcome Summer
Looking to make the most of summer? From cage diving with sharks off the coast of Montauk and arriving at a vineyard by helicopter to racing across New York Harbor on a high-speed powerboat or floating above the Hudson Valley in a hot air balloon, there's no shortage of unforgettable experiences just beyond the city. Whether you're craving adrenaline or simply looking for a new adventure, these bucket-list activities are the perfect way to make this summer one to remember.
Shark Dive Montauk
For the ultimate adrenaline rush, head out into the Atlantic and come face-to-face with mako and blue sharks from the safety of a submerged cage. It's one of the most unique experiences on the East Coast and definitely not your average Hamptons weekend.
Sea Turtle Dive Charters
426 W Lake Dr, Montauk, NY 11954
Wings Air Helicopters
Skip the traffic entirely. Charter a helicopter from Manhattan and fly directly to a vineyard on Long Island or the Hudson Valley for a private tasting and lunch before heading back to the city. The journey is just as memorable as the destination.
Wings Air Helicopters | Hudson Valley Vineyard Tour
67 Tower Rd, West Harrison, NY 10604
The BEAST Boat Ride
Sometimes its fun to play "tourist" in your own city, so if you have never done this before go ahead and see the Statue of Liberty, Brooklyn Bridge, and Manhattan skyline from the water while hitting speeds that make sightseeing feel more like an adventure sport.
The BEAST Speedboat Ride – Midtown
42nd Street and 12th Ave, New York, NY 10036
Hot Air Balloon Rides
Float above vineyards, rivers, and rolling hills as the sun comes up. It's peaceful, stunning, and one of the most underrated experiences within a couple hours of Manhattan.
Above the Clouds Hot Air Balloon Rides
72 Airport Rd, Middletown, NY 10940
One for the Weekend
Summer Cocktail
Ranch Water is the ultimate summer cocktail—made with blanco tequila, fresh lime juice, and sparkling mineral water for a crisp, refreshing drink that's easy to love. The best part is you can adjust it to your taste. Add a splash of simple syrup or Cointreau if you prefer it a little smoother, and rim the glass with chile-lime salt for an extra kick. Topo Chico is the classic choice, but any sparkling water works just as well.
Ingredients
|
Preparation Fill a highball glass with ice. Add the tequila and the lime juice, then top it off with Topo Chico. Gently stir to mix. Serve with a lime wedge. Keep topping off with Topo Chico to dilute to your liking and extend the life of the drink. |
