M
anhattan's housing market is shifting from buying to bequeathing, with affluent parents increasingly using trusts to gift homes to their children. In 2024, trusts powered 28% of home sales in the borough, a significant increase from 17% three years earlier.

    The trend reflects a growing reliance on inherited wealth rather than self-made purchases, driven by soaring median home prices of $1.1 million, high borrowing costs, and a massive $100 trillion wealth transfer. Even high earners, such as doctors pulling in $350,000, are finding themselves priced out of the market.

    Parents are using trusts to gift homes to their children while they're still alive, providing them with something now to help them navigate the expensive housing market. "It's hard to be self-made and buy property without generational wealth," says Peter Zaitzeff, a Serhant agent. "You need to make or have a lot of money to be here."

    Trusts offer tax breaks and a veil of privacy, making them an attractive option for savvy buyers. They can slash estate taxes after a homeowner's passing, sidestep gift tax hurdles, and maintain some anonymity despite new transparency rules.

    The trend is expected to persist as more baby boomers pass down assets to a generation prioritizing luxury real estate. "There are certainly many creative uses for trusts that provide privacy tax advantages," says Jonathan Miller, an appraiser with Miller Samuel.

    Trusts are not only used by parents buying homes for their children; they also serve other purposes, such as maintaining privacy and managing tax exposure. The trend is reshaping Manhattan's coolest corners, with a third of trust-bought condos landing in chic spots like Soho, Tribeca, and the West Village.

    As baby boomers pass down vast fortunes, analysts see no slowdown ahead. New York's 350,000 millionaires ensure luxury real estate stays a hot ticket for heirs, and experts predict trusts will only grow in popularity as families navigate this wealth wave.