Want to rebalance New York City's real estate market? Start by fixing this tax

The New York Times has been publishing a series of articles that put some flesh on a phenomenon that even casual observers of Big Apple’s real estate already had a grasp on: Some of the priciest condos in the world are being snapped up by astronomically rich foreigners looking for safe places to park their money.

But even the “oh wow” parts of the stories — detailing how many purchases are made through shell companies and that some of the big-shot buyers are not the most savory people — have been met with a yawn by jaded industry players and most New Yorkers.

I’m not especially alarmed myself. While it may seem nauseating to see an oil-rich potentate snapping up a park view penthouse that he will never live in, that’s the way our city and economy function at the ultra-high end.

A far more important conversation is how we treat such purchases for tax purposes. Should we effectively fund luxury construction by providing it tax incentives? Should we find a way to tax pied-a-terres, as some are pushing to do?

Read full story: Want to rebalance New York City's real estate market? Start by fixing this tax