5 Predictions That Will Define the NYC Housing Market in 2026

In 2026, I expect New York City homes to sell faster, but don't panic, buyers! We're likely to see more homes hitting the market, so it won't be the wild frenzy of a few years back. For renters, expect a tougher go with rents climbing higher, largely because we just don't have enough apartments to go around.

It's crunch time in NYC's housing market, and frankly, things are getting complicated. I've been keeping a close eye on this city for years, and the trends I'm seeing point to some big shifts ahead for 2026. Based on the latest insights from StreetEasy®, here’s what is on the horizon for both folks looking to buy and those who are renting:

5 Predictions That Will Define the NYC Housing Market in 2026

1. Homes Will Fly Off the Shelves (But There's Still Hope for Buyers!)

Picture this: homes in NYC are going to start selling quicker in 2026. We're talking about the highest number of sales we've seen since 2022! Why? Well, mortgage rates are expected to keep inching down, but they'll still be a bit higher than we'd all like, probably sticking above 6%. This is great news for sellers, and it means buyers will need to be ready to jump when they see something they like.

But here's the good part for buyers: unlike the craziness of 2021 and early 2022, you probably won't have to battle it out with a dozen other people for every single apartment. StreetEasy® data shows that new listings are on the rise, and we’re seeing more homes come onto the market than we have in a while. This means there should be enough good options out there to go around.

Quick Look at Sales Pace:

Year	Median Days on Market	Trend
2024	(Previous Year Data)	Slower Pace
2025	68 days	Declining
2026	Expected to decline further	Faster Pace Expected

2. Sharing is Caring: Co-Buying on the Rise

Buying a home in NYC is tough. My gut feeling is that more and more people will team up to buy. StreetEasy® found that a huge chunk of folks looking to buy want to do it with someone else – maybe a partner, but increasingly, friends or family are stepping in. This idea of “third-way” ownership, where you buy with people you’re not romantically involved with, makes a lot of sense when prices are high and mortgages are a challenge.

Think about buying a duplex or a triplex: you get your own space, but you’re also sharing bills and making it a bit more affordable. Plus, with more older folks looking to downsize within the city, these kinds of multi-family homes are becoming super desirable.

• 56% of prospective NYC buyers planned to buy with a co-buyer in a recent survey.
• This includes buying with friends (9%) and relatives (6%), not just spouses.

However, finding affordable multi-family homes is like finding a needle in a haystack. We need more options, and maybe some smart changes to zoning laws could help create more of these flexible living spaces.

3. Rents Will Keep Climbing (Yep, It's Still Tough Out There)

While the rest of the country might see rents cool down, here in NYC, I predict they'll heat up. We’ve seen rents go up by almost 5% this year already, and with fewer apartments available and people staying put longer, that number is likely to climb even more in 2026.

Even though a bunch of new buildings have been popping up, it’s not enough to fix our massive housing shortage that’s been building for decades. Plus, with jobs feeling a little shaky for some and mortgage rates still high, more people will stay renting. This means more competition for apartments, and that always pushes prices up.

Key Factors for Renters in 2026:

• Chronic undersupply: Not enough apartments for everyone.
• Job security concerns: Making people hesitant to buy.
• High mortgage rates: Keeping homeownership out of reach for many.
• Declining vacancy rates: Fewer options mean more competition.

4. Forget “Luxury,” Think “New Build” for Affordability

This one might surprise you, but rentals in new buildings are actually starting to look like the more affordable option in 2026. Why? Because there are so many new ones being built, and landlords are using deals like free months of rent to fill them up. Meanwhile, rents in older buildings, especially in popular, well-connected neighborhoods, are skyrocketing.

Since 2019, rents in new buildings (after deals) have gone up about 20%, while older buildings have seen a 23.1% jump. This makes those shiny new apartments a more attractive bet, even if they’re a bit further out from the prime spots.

It's a clear sign: building more housing, whether new or by fixing up existing places, is the best way to tackle rising costs. It’s good to see the city finally making moves with things like the “City of Yes for Housing Opportunity” plan and new tax incentives, but there's still a long way to go.

5. Community is King: Renters Want More Than Just an Apartment

As homeownership slips further away for many, renters are staying renters for longer, and they're looking for more. StreetEasy® data shows the average age of renters is creeping up. This means people want their apartments to feel like home, and that includes having a sense of community and convenience.

New buildings are catching on. They’re adding more shared spaces like lounges, rooftop decks, party rooms, and even coworking spaces. It’s not just about having a roof over your head anymore; it’s about having a lifestyle. These communal areas are becoming a big selling point, and I think this trend will only get bigger.

What Renters are Looking For in New Buildings:

• Lounges: 61% of newer buildings offer them.
• Rooftop Decks: A staple in 63% of new rentals.
• Coworking Areas: Nearly doubles in new buildings (19% vs. 11%).
• Wellness Spas: Available in 29% of new construction.

It’s all about making rental buildings feel more like a neighborhood within themselves. Property managers who offer these kinds of amenities will definitely win out.