Residents of Manhattan are increasingly relying on their parents to purchase or transfer properties to them.

According to new data from Attom, 28% of Manhattan home sales in 2023 involved trusts, a sharp increase from 17% just three years prior. While not all trust transactions include parents and children, they have become a go-to tool for wealth transfers, offering benefits such as reduced estate taxes, limited gift tax exposure, and increased privacy.

The surge reflects a broader shift in real estate financing, driven by a combination of rising home prices, evolving tax laws, and the largest generational wealth transfer in U.S. history. With Manhattan’s median sales price at $1.1 million, the barrier to entry is simply too high for many without inherited wealth.

These buyers are mainly concentrated in Soho, Tribeca, and the West Village, where one-third of condo sales involving trusts occurred last year.

(source: The Real Deal, picture: a-c)