Condo Tax Abatements Offset Pain of Rising Mortgage Rates

With mortgage rates rising alongside inflation, tax abatements are an incentive for New York City condo buyers. An active 421-a tax abatement is a great selling point right now for the new developments that have one.

There are currently 3,562 available sponsor units that come with a 421-a tax abatement. The timelines are different for every building, with some expiring sooner than others. But many projects still have more than a decade left like The Rennie‘s, which goes through 2043.

Here is a list of the large-scale new development projects (read: condos with 100+ units) where buyers will get at least 10 years of relief on their tax bill. We’ve included some handy charts so you can track the phase-out.

One Manhattan Square

Buyers at Extell’s One Manhattan Square in Two Bridges get a 100% abatement through 2031 but the program doesn’t phase out until 2039. This 81-story, 814-unit tower is 57% sold and averaging 6.3 monthly contracts. Prices start at around $1M, which speaks directly to rate-sensitive audiences. More here >>>

The Rennie

At The Rennie, BRP Companies’ Harlem condo, the 421-a tax abatement runs through 2043. The tax benefit is 100% until 2039 before it begins tapering off. This project is smaller than most on this list, with 8 floors and 134 units. Asking prices are in the under $2M sweet-spot. More here >>>

The Kent

The Kent, Extell’s condo at 200 East 95th Street in Yorkville, has 15 years remaining, with the 100% benefit tapering off starting in 2028. The 30-story project is comprised of 82 units, with 36 still available. Asking prices start at $340K for a studio. More here >>>

15 Hudson Yards

15 Hudson Yards in West Chelsea earns a spot on many Marketproof lists, including this one where it’s the highest-end example. The condo developed by Related Companies and Oxford Properties Group still has 17 years left on 421-a, which expires in 2039. The project is approaching 90% sold and averaging 2.8 monthly sales. Prices here start around $2M. More here >>>

Tangram House South

F&T Group and Shanghai Construction Group’s Tangram House South in Flushing is 93% sold with only 14 sponsor units remaining – so clearly the tax abatement isn’t hurting. There are 12 years remaining on 421-a, which continues through 2039, although the 100% discount tapers off starting in 2028. Prices range from $642K to $3.13M. More here >>>

Hero

Silverback Development’s Hero in Long Island City is also mostly sold at 88% with 13 units remaining out of the 109 in the 22-story building. The abatement is active until 2035, however the benefits will begin to phase out in 2026. Prices for this project range from $550K-$1.75M.
More here >>>

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