The Mansion Tax Is Reshaping Luxury Real Estate Markets

Episode 26 of The Business of Real Estate with Fexingo dives into the growing number of cities imposing transfer taxes on high-value homes, known informally as 'mansion taxes.' Lucas and Luna examine the case of Los Angeles's Measure ULA, passed in 2022, which adds a 4% tax on sales above $5 million and 5.5% above $10 million. They look at early data showing a drop in luxury sales volume, shifts in buyer behaviour like 1031 exchanges into commercial assets, and how developers are adjusting pricing strategies. The episode also touches on New York City's mansion tax, which starts at 1% for sales over $1 million and rises to 3.9% above $25 million, and compares how these taxes affect market liquidity differently depending on the threshold and local demand. Lucas and Luna explore whether these taxes actually generate the promised revenue for affordable housing, or whether they push transactions into the shadows. No marketing fluff, just a specific, data-driven look at a policy trend that's reshaping high-end residential real estate in 2026. #MansionTax #MeasureULA #LosAngelesRealEstate #LuxuryRealEstate #TransferTax #AffordableHousing #NYCRealEstate #RealEstateInvesting #PropertyTax #HousingPolicy #LuxuryHomes #RealEstateTrends #BusinessOfRealEstate #Fexingo #LucasAndLuna #FexingoBusiness #BusinessPodcast #RealEstatePodcast Keep every episode free: buymeacoffee.com/fexingo