In 2024, Manhattan's real estate market witnessed a notable rise in home sales involving trusts, escalating from 17% to 28% as affluent parents increasingly gift properties to their children. This trend is influenced by soaring prices, innovative tax strategies, and a significant generational wealth transfer estimated at $100 trillion. As median home prices reached $1.1 million and cash deals comprised over 60% of sales, even high-income earners struggle to obtain property. Real estate experts highlight this shift as a means for parents to support their children financially, moving away from the traditional inheritance model.
These clients want to avoid tax ramifications with their purchase and be discreet with their spending, and she estimated 40% of her parent-driven sales last year involved trusts.
One sort of change that's coming out of the pandemic are parents who, instead of saving [homes] for when they pass, they give it to their kids while they're still alive to give them something now to help them.
It's hard to be self made and buy property without generational wealth... You need to make or have a lot of money to be here.
Skyrocketing prices, new tax maneuvers and the dawn of a $100 trillion generational wealth transfer are fueling the shift, according to the outlet.
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