By Craig Karmin

This is an edition of the Real Estate newsletter, a weekly briefing of the biggest commercial deals, news, analysis and trends in office, multifamily, retail and other commercial sectors. If you're not subscribed, sign up here.

If you are fortunate enough to own a second home in the U.S., there is a decent chance you'll soon be paying more taxes on it. New York City is planning to tax pieds-à-terre on homes worth at least $5 million. Rhode Island's "Taylor Swift tax" will hit homes valued at over $1 million that are uninhabited for at least 183 days of the year. Courts in Montana and San Francisco are also weighing proposals for extra levies on vacant homes. Nicholas Miller explores the furious debate these proposals have unleashed, and why they present a politically attractive fix for housing and budget shortfalls in many places.

Back in the primary housing market, foreclosure filings hit a six-year high in the first quarter. One factor driving this trend: fast-rising homeownership costs, such as property-tax and insurance bills. Homeowners who bought their homes within the past few years might be even worse off, because they bought at higher mortgage rates. In some areas, prices have slipped, leaving some owners underwater. Nicole Friedman and Veronica Dagher explain why the recent rise in foreclosures is an indication that more people are struggling financially.

Taxes on Second Homes Are Springing Up Across America

State and local governments across the U.S. are seizing on a juicy new target for plugging budget holes and easing housing shortages: second homeowners.

High Housing Costs Are Pushing Foreclosures to a Six-Year High

U.S. foreclosure filings hit a six-year high in the first quarter. Fast-rising homeownership costs such as property-tax and insurance bills are a reason to blame.

The number of U.S. properties with a foreclosure filing in the first quarter, according to property-data provider Attom. That marked a 26% jump from the same period a year earlier. The current foreclosure rate is a return to the prepandemic norm and not a sign of widespread borrower distress, analysts say.

Data Points

   -- 13.1% The year-to-date increase of the FTSE Nareit All Equity REITs 
      Index. Real-estate investment trusts, led by strong demand for data 
      centers, are outperforming broader market returns by more than double. 
 
   -- 6.54 million: The amount, in square feet, of leasing activity in 
      Manhattan by technology companies last year, a 71.4% year-over-year 
      increase and the highest total since 2019's peak level of 7.57 million 
      square feet, according to Colliers. The strong demand was driven by a 
      record-high number of transactions and large deals as tech tenants 
      comprise a growing share of Manhattan's office leasing. 
 
   -- 80%: The amount of respondents who say hotel bookings related to the 2026 
      FIFA World Cup are tracking below initial forecasts, according to a 
      survey commissioned by the American Hotel and Lodging Association. The 
      top constraint on travel is depressed international demand due to visa 
      barriers and geopolitical concerns, respondents said. 

Beyond WSJ

   -- U.K. Retail Inventory Shrinks for the First Time This Century (CoStar) 
 
   -- A Real-Estate Operator Used Colliers' Brand to Sell Retirees Risky 
      Investments. Many Lost Everything (Bisnow) 
 
   -- Inside the Billboard Heist at Vornado (The Real Deal) 

About Us

Craig Karmin is real-estate news bureau chief. Reach him on X @CraigKarmin or via email at Craig.Karmin@wsj.com. The newsletter is compiled and edited by Kate King and Rebecca Picciotto (rebecca.picciotto@wsj.com), WSJ real estate reporters. Reach them via email at kate.king@wsj.com and rebecca.picciotto@wsj.com. Got a tip for us? Here's how to submit.

(END) Dow Jones Newswires

May 06, 2026 10:00 ET (14:00 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.