Wealth & Investment
Rental Yields in New York: What a Luxury Property Really Earns
Gross yield is the number brochures quote. This is what a luxury property in New York earns after the costs nobody prints.
99Habitat Research · 27 Aug 2026 · 6 min read
In short
Well-chosen luxury property in New York produces 3–4% gross before carrying costs. Net returns typically land one to two percentage points lower after management, service charges and vacancy.
The gross number
3–4% gross before carrying costs in New York. That is the number to start from, not the number to plan with.
Manhattan offers the world's most liquid prime condominium market and no ownership restrictions for foreign nationals. Tax and estate planning, not access, is the constraint.
What comes off the top
Service charges, management fees, letting commission, insurance, maintenance reserve and void periods. In prime markets these routinely absorb a fifth to a third of gross rent, and service charges on branded or amenity-heavy buildings are the most commonly underestimated line.
Tax matters too: annual property tax, mansion tax on higher-value purchases, us estate tax exposure — plan with counsel
Where the demand actually is
Midtown & Billionaires' Row: New-build supply, global buyer base.
Tribeca & West Village: Scarcest family-sized prime; best resale.
Upper East Side: Value per square foot, co-op restrictions.
How we underwrite it
Ten months of occupancy, three years of comparable evidence, and a resale assumption of flat real pricing. If the case only works on twelve months and rising rents, it is not a case — it is a hope.
US estate tax on directly held property can be severe for non-residents. Structure first.
References
This article is general information, not investment, tax or legal advice. Rules change — confirm current requirements with qualified counsel before you transact.
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