Let’s facing: buying a home in New York is expensive. So when my clients lean in and ask “My parents are helping me with this purchase… is that normal?” — my answer is simple: Yes. Totally normal.

In fact, it might be the quietest open secret in the city.

A City Fueled by Cash

For years, about half of Manhattan sales have been all-cash deals. This past year? That number jumped to 64%. Compare that to the rest of the country, where only 39% of buyers close without a mortgage, and you start to see just how unusual New York is.

Where is all this cash coming from? Sometimes it’s savings, sure. But more often, it’s family wealth - inheritance arriving a little early, while parents and grandparents are still here to see their kids and grandkids enjoy it.

My Own Experience

Across my career, roughly 30% of my transactions have included a gift from parents. And in many of those, the gift wasn’t just a little boost — it covered the entire purchase price.

There’s no shame in this — it’s not only very typical, it’s often a major life goal for the parents. I’ve watched fathers use the businesses they built from scratch to buy homes for their daughters. I’ve seen mothers who immigrated to the U.S. and raised three kids through med school beam with pride as they signed on their son’s first condo. To be part of those moments is an immense honor.

The “Scary” Gift Tax Myth

The phrase “gift tax” tends to spook people, but here’s the truth:

You file a gift tax form just to keep records for your future estate tax. But you most likely won’t have to pay the tax on your gift today.

• At the federal level, you can give up to nearly $14 million over a lifetime (double that for couples) before any estate tax kicks in.

• In New York State, the estate tax exemption is roughly $7 million - but that only really matters if the gift is given within 3 years of the gifter’s passing.

Translation: unless your parents are giving away Rockefeller-level sums, the IRS isn’t showing up at your closing.

And if your parents are New York tax payers, it’s better for them to give you your inheritance early.

Why this Trend Makes Sense

It’s hard to save a lot of money quickly. Income is taxed more heavily than wealth, and prices rise faster than paychecks. Parents worked hard, invested patiently, and now they get the chance to see their kids plant roots. That’s not something to feel shy about — it’s something to be grateful for.

Bottom Line

Parents and grandparents aren’t just helping here and there — they’re quietly propping up the New York City real estate market. So if you’re buying with family help, you’re not an outlier. You’re part of the tradition.

That’s all for today! Questions about the market, comments, or musings to share? Email me anytime. Eager for more? Follow me on Instagram.