The Great Wealth Transfer and Selling a Parent’s Home in NYC: What Families Need to Know

The generational shift of wealth taking place right now is one of the most profound forces shaping the real estate market. In New York City — where property values are among the highest in the nation — the transfer of family homes and assets from Baby Boomers to their children is influencing how real estate decisions get made. Whether you’re considering selling an inherited property, helping your parents downsize, or planning ahead for the future, understanding this trend matters now more than ever.

What Is the “Great Wealth Transfer”?

Over the next 20–25 years, trillions of dollars in assets — including real estate — will pass from Baby Boomers (those born roughly between 1946 and 1964) to younger generations. Experts estimate this intergenerational shift to be between $84 trillion and $124 trillion nationwide, with a significant portion tied to home equity and property ownership. Florida Realtors+1

Real estate is central to that transfer. Boomers own a disproportionately large share of U.S. property wealth — roughly 41% of all real estate holdings nationwide — even though they represent less than 20% of the population. Effective Agents

For many NYC families, this isn’t a distant future story — it’s happening now. Homes that were bought decades ago have appreciated tremendously, and the decisions around what to do with these properties involve both financial considerations and emotional complexity.

Why This Matters for New York City Families

1. Inherited Property Is Becoming More Common

In Manhattan, trusts and other estate tools are increasingly used to transfer property from parents to adult children without a traditional sale. In 2024 alone, 28% of Manhattan home transactions involved trusts, up from 17% in 2021. This trend reflects affluent families’ desire to minimize taxes and navigate high housing costs — especially as even well-paid professionals find market entry difficult without additional capital. New York Post

2. Selling a Parent’s Home Requires Strategy and Preparation

Selling an inherited or estate property in NYC is rarely as simple as listing any home. Key steps include:

• Confirming legal authority — Before anything else, it’s essential to verify who has the legal right to sell the property. Probate through Surrogate’s Court or designation through a trust may be needed, especially for co-ops and condos. Decode NYC

• Understanding the property type — Different property forms (co-ops, condos, single-family homes) have their own rules and buyer expectations. For example, co-ops often require board approval, and that can affect timing and pricing. Decode NYC

• Preparing the home — Long-held family homes often reflect years of accumulation and deferred updates. Instead of costly renovations, focus on clarity and condition so buyers feel confident. Decode NYC

• Pricing realistically — Emotional attachment can skew expectations. Data-driven pricing that reflects recent comparable sales helps ensure competitive offers and limits time on the market. Decode NYC

Beyond market mechanics, remember this transaction often involves emotional layers. Talking through expectations with family members and aligning on timing, pricing, and legacy concerns can take as much effort as any logistical task.

A Broader Real Estate and Wealth Context

Millennials and Gen Z Are Seeing Wealth Inheritances, but Not All Will Receive Them

Across the wider economy, younger generations are anticipating inheritances that could help with homeownership and retirement. A recent study found that nearly 70% of millennials say they can’t buy a home or retire without an inheritance, and many are looking to the predicted $90 trillion national wealth transfer as a future financial foothold. New York Post

That same study also underscores the complexity: while substantial wealth transfer is anticipated, only about 26% of Americans expect to actually receive an inheritance, and an increasing share of Boomers say they want to “enjoy their money while they’re alive” rather than leave it behind. New York Post

Real Estate Is a Large Piece of the Wealth Puzzle

Real estate isn’t just dollars in the bank — it’s wealth stored in physical assets. National surveys show that a majority of Americans who expect to inherit wealth anticipate receiving real estate or property as part of that legacy. Effective Agents

Tips for NYC Families Handling an Estate or Inherited Home

Here are a few actionable strategies to help make the process smoother:

✔ Start conversations early. Proactive discussions about estate plans, timing, and expectations help ease both emotional and financial stress.

✔ Partner with experienced professionals. A local real estate agent with expertise in estate sales, probate timelines, and NYC property nuances can anticipate challenges before they arise.

✔ Address financial and legal logistics up front. Taxes, liens, carrying costs, co-op board requirements, and trust documentation are all pieces that need clarity before listing. Decode NYC

✔ Think long-term. Transferring a home isn’t just a transaction — it’s part of your family’s financial future. Consider how the proceeds or continued ownership fit into broader plans like retirement, relocation, or reinvestment.

We believe real estate decisions — especially ones tied to generational wealth — deserve thoughtful, informed guidance. Whether you’re selling an inherited co-op, helping a parent transition to a new chapter, or planning ahead for your family’s future, the current wealth transfer trend makes these moments particularly significant. With the right expertise and proactive planning, you can make choices that honor both your family’s legacy and your long-term goals.