We have similar taxes in major cities in Canada (including both metro and provincial taxes here in Vancouver).

Housing is still massively squeezed and unaffordable for many in the Vancouver metro area, but the taxes definitely have encouraged some homeowners to sell or rent their properties, especially foreign investors, and their seem to be few or no downsides for people of middle-class and even moderately-affluent incomes.

I doubt that NYC will lose too much sleep over the protestations from extraordinarily wealth plutocrats.