The Real Deal New York

Multifamily properties in Westchester are selling “like hotcakes”

The $10K cap on state and local property tax deductions does not apply to multifamily homes rented for income only: accountant
October 14, 2018 02:00PM

(Credit: Rgkleit/Wikimedia Commons, Pictures of Money)

Multifamily is the new single-family for those looking to buy in tony Westchester County.

The assessment comes from Houlihan Lawrence broker Candace Evans, who said, in an interview with Bloomberg, multifamily properties in the county are “selling like hotcakes.”

Evans’ observation is backed up by Miller Samuel and Douglas Elliman’s third quarter report, which shows purchases of multifamily properties — categorized as two- to four-family homes — rising by 28 percent year over year. The median price of the 160 multifamily properties that transacted in the quarter was $525,000.

The surge in demand for multifamily is being attributed to buyers being able to sidestep the $10,000 cap on state and local property tax deductions with investment properties. The cap does not apply to multifamily homes being rented out for income only, accountant Shannon Dally told Bloomberg.

Westchester’s market for single-family homes has become an unforgiving buyers’ market where homeowners’ property taxes can easily reach $50,000. [Bloomberg] — Erin Hudson