Pied-à-Terre NYC: Expert Guide to Buying in 2025
By Thomas Kutzman on February 21, 2025
New York City is a special place with a vibrant energy that is just magical. It is no wonder that so many people want to own their own piece of the city, even if they don’t live here on a regular basis as a full-time resident, making it distinct from the owner's primary residence.
Whether you live just outside the city and are looking for a place for weekend retreats, or live in a foreign country and desire a personalized space for New York work trips or extended stays to live like a local, there are lots of reasons to be buying a pied-à-terre in NYC.
Buying a pied-à-terre in NYC
- What is a pied-à-terre?
- What are the benefits of buying a pied-à-terre in NYC?
- Do NYC co-ops have rules on pied-à-terre?
- Are condos a better option as pied-à-terre in NYC?
- What apartment or building amenities attraxt pied-à-terre buyers?
- What neighborhoods are most popular for pied-à-terre?
- Are there additional taxes for when buying a pied-à-terre in NYC?
- How can I make buying a pied-à-terre more affordable?
What is a pied-à-terre?
If you didn’t take French as a second language in high school or grow up in Paris or Lyon, the French phrase pied-à-terre literally translates from French to English to mean "foot on the ground."
In real estate lingo, a pied-à-terre is an apartment in a metropolitan city like New York that is used on a temporary basis by the owner, not as the owner's primary residence.
Depending on your budget of course, pied-à-terres are generally smaller apartments that are used for weekend visits or extended stays for work or local presence. They are generally not viewed as vacation homes, and serve as crash pads that house the most basics for an owner to feel at home while away from their primary residence.
Who is buying a pied-à-terre?
Pied-à-terre buyers in NYC are a diverse and dynamic group, each with unique motivations for securing a foothold in the city. These buyers range from business executives and entrepreneurs to artists and international investors, all seeking the convenience and luxury that a pied-à-terre offers.
In recent years, there has been a noticeable influx of buyers from the tech industry, particularly from Silicon Valley and other tech hubs. These individuals often require a base in NYC for business purposes and appreciate the city’s vibrant culture and amenities. Similarly, the finance industry continues to be a significant source of pied-à-terre buyers, with many professionals seeking a convenient place to stay during their frequent trips to the city.
The arts and entertainment sectors also contribute a substantial number of pied-à-terre buyers. These individuals value the proximity to NYC’s world-renowned cultural institutions, theaters, and galleries. Additionally, many empty nesters are drawn to the idea of having a city retreat now that their children have left home.
When it comes to property types, many pied-à-terre buyers are interested in luxury condos and co-ops in high-end buildings that allow pied-à-terres. These properties often feature desirable amenities such as doormen, gyms, and rooftop decks. However, some buyers may opt for smaller studios or one-bedroom apartments in more affordable neighborhoods, depending on their needs and budget.
Overall, the market for pied-à-terre buyers in NYC is robust and multifaceted. Prospective buyers should conduct thorough research and work with a qualified buyer's agent.
What are the benefits of buying a pied-à-terre in NYC?
A morning run in Central Park, lunch at your favorite brunch spot, shopping in Soho, an evening at the theater, or cocktails at your favorite mixologist are a few examples of the attraction of New York City.
As a cosmopolitan city, New York offers cultural attractions, world-renowned cuisine, lively nightlife, Broadway shows, live music - perfect for a weekend getaway or as a home away from home.
Buyers of NYC pieds-à-terre often prefer locations near cultural institutions, business centers, and key attractions. Fifth Avenue remains a traditional choice for many pied-à-terre buyers due to its proximity to cultural institutions and business centers. There is also a growing interest in Downtown neighborhoods below 34th Street for pied-à-terre investments.
There are so many benefits to the buyer of a pied-à-terre versus staying in a hotel with inconsistent and highly variable room rates. When you own your own slice of the big apple you can really feel like a local and really feel at home because you are at home.
Another advantage is you are participating in the market and could potentially gain financially if the NYC real estate market does well. Of course you could also lose money, so it depends on your investment horizon and risk tolerance.
Current owners in the city also benefit from an underlying bid to property prices. Pied-à-terre buyers add an incremental pool of demand for NYC apartments and can provide a stabilizing force to the real estate market. In strong market conditions, these buyers can also be a driver of price appreciation.
Do NYC co-ops have rules on pied-à-terre?
Many co-op buildings in NYC have strict rules for just about everything. This includes whether or not owners can use their apartment as a pied-à-terre. While many buildings allow a pied-à-terre, it is best to check in advance before making an offer.
The reason why some co-ops don’t allow pied-à-terre buying is that co-op buildings want shareholders to use their apartments as their owner's primary residence and take care of it. This fosters a sense of community, which is best achieved by owners who are present all the time vs. pied-à-terre owners who may not be living in the building for months at a time.
NYC co-ops have strict rules on subletting as well for this reason. Co-op boards shy away from absentee shareholders that will be less likely to focus on upkeep of the apartment, overall community of the building, and potential to bend the rules with short-term rentals while not there.
Are condos a better option as pied-à-terre in NYC?
While co-ops make up the largest portion of apartment inventory in NYC, condos often offer the best features in an apartment alongside the fewest ownership restrictions.
First and foremost, buying a condo in NYC is an easier process than a co-op purchase as the condo board application is usually less rigorous, and once you own the apartment there are generally less rules to abide by.
For example, you have greater ability to rent the unit to a tenant if you were not planning to use your pied-a-terre for an extended period of time.
Second, the majority of resale condos and new construction condos are quite simply newer than the various pre-war co-op buildings. These newer condos feel more like high end hotels and offer state-of-the-art amenities.
What apartment or building amenities attract pied-à-terre buyers?
Location, location, location is the old adage when discussing real estate. The same is true for pied-a-terres. Proximity to airports and local transportation are one of the key attributes buyers look for as they will unlikely keep a car.
Other NYC apartment attributes pied-à-terre buyers ask for
- Full-service doorman or concierge building
- Efficient, manageable size (600 to 1,200 sqft)
- Comfortable layout (studio, 1 bedroom, or 2 bedroom)
- Fitness center
- Roof terrace / outdoor space
- Washer / dryer in unit
What neighborhoods are most popular for pied-à-terre?
When folks from outside of the city or foreign buyers consider a pied-à-terre purchase in "the city," they historically have been referring to Manhattan, and not one of the other 4 boroughs of New York City.
A pied-à-terre is a small living unit, typically an apartment, that is not the owner's primary residence. The cost of owning a pied-à-terre can vary significantly based on size and location, and the negotiation process often involves careful consideration of these factors.
The most common areas pied-à-terre buyers request within upper Manhattan are the Upper West Side and Upper East Side, ideally as close to Central Park as possible.
For those looking for a more Downtown vibe, Greenwich Village, Gramercy, the West Village, and Tribeca have been among the favorites for new pied-à-terre owners. Midtown too, especially on the west side for access to tunnels and Penn Station and Hudson Yards.
Beyond the classic Manhattan neighborhoods, the rapid development of new construction, full-service condos in waterfront areas of Brooklyn and Queens has attracted attention.
Areas such as Williamsburg, Downtown Brooklyn, and Long Island City have newfound pied-à-terre buyer interest thanks to newer amenities, hip neighborhoods, and potential appreciation opportunities. Some buildings in these areas also offer attractive new construction tax abatements.
Are there additional taxes when buying a pied-a-terre in NYC?
Many buyers looking for a pied-à-terre in NYC ask - what are the tax implications of buying such an apartment?
In general, there are no additional real estate tax implications above and beyond closing costs during purchase and sale, the annual property taxes on their condo or their pro-rata portion of property taxes included in their co-op maintenance, as well as any applicable capital gains taxes depending on your sale price and financial situation.
However, it's important to consider the potential pied à terre taxes. The introduction of a pied-à-terre tax bill targets expensive secondary residences, with specific details on how the tax would be imposed based on the property value.
In 2019, record-setting NYC apartment purchases by the likes of hedge fund billionaire Ken Griffin created a stir with politicians and calls for a pied-à-terre tax.
The pied-à-terre tax proposed by New York State Senator Brad Hoylman called for an annual tax on non-primary residences valued at $5 million or greater and would have potentially included ownership held via LLCs.
Ultimately, politicians skipped a pied-à-terre tax in favor of graduated mansion tax rates and increased transfer tax rates above certain property purchase prices.
To learn more about closing costs and potential mansion and transfer tax rates on an apartment purchase, use Prevu’s NYC closing costs calculator for buyers.
How can I make buying a pied-à-terre more affordable?
Buying a pied-à-terre is usually reserved for the select few who have the extra means to afford it. However, that doesn’t mean you shouldn’t benefit from a more affordable purchase.
When buying New York City real estate, you should work with a local NYC broker that offers a commission rebate to buyers. Prevu, a venture-backed real estate tech company offers a cash back rebate up to 1.5% of your purchase price when you buy with their local experts.
Interested in buying an apartment in NYC? Browse listings to see what’s available in your favorite NYC neighborhood.
