What exactly is a pied-à-terre?

Everything sounds fancier in French, right? So when you hear the term pied-à-terre, you may imagine some kind of swanky villa or a Manhattan penthouse. Well, you’re not wrong exactly, but it’s a bit more complicated than that. The term pied-à-terre is used in real estate to describe a homeowner’s secondary property, but it has grown to take on a meaning beyond simply a “second apartment.”

What is a pied-à-terre?

Translating literally to “foot to Earth,” the term pied-à-terre came to be from 18th-century French soldiers resting their horses after a long day and taking up residence in transient housing. The pied-à-terre was a modest, temporary lodging for a soldier to “mettre la pied-à-terre” or dismount, get a meal, and rest up before eventually returning to his real home. Eventually, the term was simplified to just pied-à-terre.

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Despite the humble origins, today, pied-à-terre is most commonly used to refer to the chic secondary homes of the ultra-wealthy in high-end urban neighborhoods. For example, in the US, they may be common in the New York City area, as homes used during the workweek or certain parts of the year by residents of upscale suburban areas. Since getting into the city can be a time-consuming affair, the pied-à-terre is a more convenient place to stay rather than commuting home every day.

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Another common place people buy pied-à-terres is in college towns. When their kids go off to school, they’d like to have a residence nearby when they visit, making small residences in college towns like apartments and condos especially desirable.

What types of homes are pied-à-terres?

A pied-à-terre can be an apartment, condo, or even a small house. The term doesn’t apply to a specific type of home, but unlike a vacation home that can house a family, a pied-à-terre is meant for just one person or a couple.

You could rent a pied-à-terre out on Airbnb for part of the year and only use it as a residence for a different part of the year; it’s still a pied-à-terre. Basically, a pied-à-terre is a small home-away-from-home that gives you a place to have a meal and get some rest without many of the other amenities of a house.

In New York City, so many apartments and condos are used as pied-à-terres by people who are not full-time residents that the city has considered an additional tax on them.

→ Learn more about different types of houses

What’s the appeal of a pied-à-terre?

There are a number of reasons why those who can afford a pied-à-terre love them.

• Convenience: The remote working world exposed us all to the joy of working from home and not having to commute. For those who commute from the suburbs into a larger city, having a pied-à-terre is far preferable to an hour-or-more drive each way every day.
• Fun: Everyone loves a “staycation” from time to time, and having a pied-à-terre is a great way to visit a place you know well for a little fun without having to pay for a hotel or Airbnb. Whether it’s your local city or a child’s college town, a pied-à-terre gives you a home base after a night of fun.
• Investment opportunity: Many mortgage providers have rules against secondary residences within 50 miles of your primary residence, which can complicate purchasing a pied-à-terre. Maintaining a pied-à-terre that’s far from your home can be expensive and time-consuming. Paying taxes on a pied-à-terre may be a non-starter. Nonetheless, pied-à-terres are most common in very desirable towns and cities where real estate values typically rise. Whether you want to rent it out for some secondary income or you plan to sell after changing jobs or a child graduates, a pied-à-terre may carry considerable short- or long-term investment potential.

Is a pied-à-terre right for me?

Most Americans have no need for a pied-à-terre. Most don’t have the income to justify a second mortgage and upkeep expenses on such a small home unless they’re very actively renting or using it.

A pied-à-terre is only right for you if you spend considerable time in a town or city that isn’t where your primary residence is located. If you find yourself spending thousands on hotels every year or running yourself ragged with commuting, a pied-à-terre may make sense, provided you can afford one. Otherwise, consider renting a pied-à-terre rather than buying.