Record Wall Street Bonuses Spell NYC Luxury Buying Spree

Wall Street bonuses just hit a new high — and New York’s real estate market could cash in.

The latest estimates from State Comptroller Thomas DiNapoli peg the bonus pool at nearly $50 billion, with average payouts approaching $250,000 — the highest in at least three decades. Those numbers come after profits in the sector rose to more than $65 billion, compared to just under $50 billion the previous year.

The Wall Street windfall comes after Manhattan’s luxury market ended 2025 on a high note, despite fears that the city’s mayoral election in November would chill activity. That momentum appears to have continued into 2026, and with fresh cash hitting bankers’ accounts, that deal pipeline will likely grow — even as geopolitical uncertainty lingers in the background.

Wall Street performance “feeds into the housing market for several years,” said appraiser Jonathan Miller. “This doesn’t just speak to 2026 because some of the compensation is delayed.”

Miller added that record Wall Street profits and bonuses don’t just impact the highest end of the market but could help boost activity across segments. Still, the upper echelons are likely to benefit the most, as they’re less sensitive to mortgage rates, which have been climbing since the beginning of the war in Iran.

If Manhattan is on tap for a boost, the Hamptons may get an even bigger one. Miller has long described the luxury enclave as “joined at the hip” with Wall Street, with buyers from the industry accounting for about half of purchasers, a William Raveis managing partner told the New York Post.

If history is any indication, the financial sector’s success means eye-popping deals for homes in the area. The median sale price in the Hamptons rose to above $2 million last year, with 82 homes trading for more than $5 million, according to data from Miller’s firm, Miller Samuel.

While Wall Street bonuses certainly gave financiers the money to burn, the uptick in deal prices is also a factor of scarce inventory. Rising prices and a short supply of homes in the Hamptons mean demand for second homes in nearby markets, such as the North Fork, has also gone up.

Since the start of the year, the Hamptons has logged some lofty deals, including an oceanfront estate in East Hampton. The home at 43 East Dune Lane traded earlier this month for $72 million, though it last asked $85 million.

Not so fast…

Mayor Zohran Mamdani has property taxes stuck in “will they, won’t they” limbo as he weighs his next move.

Last month, Mamdani said his administration would raise property taxes more than 9 percent to cover a $5 billion budget shortfall if Gov. Kathy Hochul and state legislators didn’t agree to a corporate tax hike — an adjustment Hochul already said she would strike down. Mamdani also wants to raise income taxes for the highest-earning New Yorkers.

Along with the announcement, Mamdani’s budget director, Sherif Soliman, acknowledged that the mayor was close to unveiling a property tax reform plan based, at least in part, on recommendations issued by a commission established under former Mayor Bill De Blasio.

Now it appears Mamdani is “quietly backing away” from his earlier vow to raise property taxes amid pushback from lawmakers across the political spectrum, the New York Times reported earlier this week. Mamdani’s earlier ultimatum reportedly angered Hochul, who has previously supported many of the mayor’s plans. City Council Speaker Julie Menin also publicly opposed Mamdani’s proposed property tax hike.

The move indicates Mamdani likely won’t be making any moves on property taxes in the near future and once again leaves the future of the system — which many have criticized as disproportionately burdensome to lower-income homeowners — in question. Mamdani addressed property taxes at an unrelated press conference this week, where he emphasized that the proposed increase was a “last resort” but didn’t go as far as to rule it out entirely.

Since Soliman’s statements in February, the administration has not publicly rolled out any comprehensive reform plans.

NYC Deal of the Week

The most expensive deal logged in the city rolls this week was for a condo at Gary Barnett’s Central Park Tower, which closed for just under $24 million. The buyers, Jian Shen and Nuo Xo, signed a contract to purchase the 4,300-square-foot apartment last month, when it asked roughly $27 million.

Unit 82E has four bedrooms and four bathrooms and features floor-to-ceiling windows with views of Central Park.