The NYC housing market is known for its wild swings and constant evolution. So, what's in store for next year? Well, here's the quick scoop: affordability will continue to be the name of the game, driving major trends in both sales and rentals. Don't expect drastic changes overnight, but get ready for some interesting shifts.

As someone who's been watching the market closely for years, I've got some opinions and insights on the five key predictions that StreetEasy has outlined. Let's dive in and take a look at what I think these trends mean for us New Yorkers.

5 Predictions That Will Define the NYC Housing Market in 2025

1. Co-ops Will Make a Comeback

Key points about the co-op resurgence:

• Price difference: Co-ops are significantly cheaper than condos, with condos selling for 26% more.
• Inventory: New co-op listings are down while condo listings are up, potentially creating a seller's market for co-ops.
• Buyer mindset: Rising mortgage rates and high asking prices may make co-ops more attractive.
• Charming Alternatives: Many co-ops have unique characteristics that are different from new builds.

Let's be real, co-ops haven’t exactly been the darlings of the NYC real estate scene. Often seen as a bit of a hassle with their stringent approval processes, they’ve often taken a backseat to the more glamorous condos. But StreetEasy predicts a shift. With sky-high asking prices and a continued shortage of affordable homes, I think they’re right— co-ops are poised for a major resurgence in 2025.

Here's the thing: co-ops are typically less expensive than condos. Their data shows that in 2024, NYC condos sold for 26% more on average than co-ops with similar square footage and amenities. That's a HUGE difference! As mortgage rates and prices remain stubbornly high, those who were once reluctant may start to see co-ops as a financially savvy and practical choice.

This isn’t just about buyers saving a buck. It’s also a sign that the market is becoming more balanced. The number of new co-op listings actually decreased by 4.5% this year, while new condo listings jumped by 7.3%. This means there might be less competition for co-ops, and sellers who are strategically priced and marketed could see a lot of interest next year.

I feel like this prediction underscores a very basic need in NYC's housing landscape: value. It’s not always about luxury and grandeur; sometimes, it's just about finding a decent place at a fair price. And co-ops, with their potentially more affordable price points, could very well offer that in 2025.

2. Suburban Competition Will Make New York Buyers Look Inward

Why NYC is becoming more attractive:

• Increased Listings: NYC has seen a larger increase in new listings (16.8%) than the surrounding suburbs (1.4%).
• More Time to Decide: Homes in NYC stay on the market longer, giving buyers more time to choose.
• Suburban Competition: The suburbs are a hot seller's market, leading to fierce competition.
• A Shift in Perspective: The city is now offering more diverse choices with a better negotiating position.

For the past few years, many New Yorkers have been tempted by the siren song of the suburbs. More space, a bit of greenery, and the promise of a slower pace of life has been appealing, particularly with work-from-home options. This may change next year. In 2025, they expect to see NYC become more attractive to buyers, as competition in the suburbs heats up due to limited inventory.

According to the Zillow Market Heat Index, the New York metro area is currently a strong seller's market, and much of that activity is concentrated in those suburbs within commuting distance of NYC. The thing is, well-priced homes are vanishing off the market quickly.

Here’s the interesting twist: While the suburbs are experiencing a crunch, the city’s sales market has seen a stronger increase in new listings this year. Through October of this year, 29,948 homes hit the market in the five boroughs, a jump of 16.8% from the previous year. Comparatively, the number of new listings in the surrounding six counties (think places like Fairfield, Bergen, and Nassau) only increased by 1.4% in the same timeframe.

This matters because more new listings in the city mean more options for buyers, which in turn gives them a slightly stronger negotiating position. What's even more fascinating is that, contrary to what some may think, homes in the five boroughs actually spend more days on the market than those in the suburbs. While suburban homes often get snatched up in two to five weeks, homes in NYC are averaging around nine and a half weeks on the market before entering contract. This gives city buyers more time to think and make a well-considered decision.

Personally, I've always loved the energy of NYC and the access to cultural and culinary experiences. The appeal of the suburbs always felt like it was driven by frustration with the city's prices, not necessarily a genuine preference. If the housing market offers a little more breathing room here, I suspect that many who flirted with moving out will feel good about staying right where they are.

3. The Luxury Market Will Boom

Factors fueling the luxury market boom:

• Price Adjustments: The starting price for luxury properties has come down 6.1% from its peak.
• Easing Interest Rates: With rates expected to ease in 2025, luxury buyers may return.
• Corporate Bonuses: Expected to rise, this will give wealthy buyers more spending power.
• A Cautious Approach: Buyers have been hesitant, but this may change in 2025.
• Ripple Effect: A strong luxury market can boost the overall real estate market.

It might surprise you to learn that the NYC luxury market hasn't been exactly booming lately. High asking prices and a smaller pool of buyers who could afford them have led to slower sales. But guess what? That’s about to change, at least according to them. In 2025, they predict the luxury sales market will heat up significantly.

Here’s how it has been, and why the change is expected: The starting price for the luxury market (the most expensive 10% of listings) hit a staggering $4.95M in December of 2023, the highest it's been since 2018. But since then, the starting price of the luxury segment has dropped by 6.1% as of November this year. This means more potential buyers are now in a position to enter the luxury market.

Why the shift now? Well, it's not that the wealthy suddenly became poor; it's more that they became cautious. With interest rates sky-high across the economy, the ultra-rich were more hesitant to invest in real estate. However, interest rates will ease in 2025, and corporate bonuses are also expected to rise for the first time in three years. This will bring luxury buyers and sellers back to the market, ready to do business.

I think it’s interesting to consider how much the psychology of the wealthy plays into the dynamics of the real estate market. They aren't just buying a place to live; they're also making an investment. This prediction, I feel, tells us a lot about how financial confidence drives the high end of the market and how even the uber-rich are impacted by economic forces.

4. Rental Markets Across the Rivers Will Increasingly Heat Up

Changes in the rental market:

• Shifting Power: Brooklyn and Queens are catching up to Manhattan in rental market size.
• New Construction: New developments in Brooklyn and Queens are attracting renters.
• Growing Inventory: Increased rental inventory may help to stabilize the market and slow down rent growth.
• Rising Rents: Jersey City and Hoboken may become the most expensive rental market outside of Manhattan.
• Amenities Matter: People are willing to cross the river for amenities like pools and outdoor spaces.

If you're a renter in NYC, you know the struggle is real. But StreetEasy has some interesting projections for 2025, and here is what you can expect: They believe that more renters will be expanding their search across the East and Hudson Rivers. This means that markets like Brooklyn and Queens will only become even more competitive.

They also anticipates that Brooklyn and Queens combined will surpass Manhattan as the largest rental market in the city. That's a big shift. New rental developments in those two boroughs have led to rapid growth in inventory during 2024, and this trend will likely continue, especially with renters preferring modern buildings and amenities. The increased inventory here should help stabilize the city’s rental market and eventually slow rent growth in the rest of the city. This will eventually be good for all renters.

But it’s not just about Brooklyn and Queens. Jersey City and Hoboken, just across the Hudson, are poised to overtake Brooklyn as the most expensive rental market outside of Manhattan. This is due to high interest in new buildings with things like swimming pools and outdoor spaces.

This year, the median asking rent in Jersey City and Hoboken was $3,160, while the median rent in Brooklyn was $3,424. So, while Jersey City and Hoboken are becoming more expensive, there are still many who are ready to cross the river for hard-to-find amenities.

I've seen how trends flow across geographic lines. With the way things are going, it appears as if you might soon have to move to New Jersey to get a good apartment in the NYC area. I mean, who would have thought?

5. New Yorkers Will Look for More Reasons to Stay at Home

The rise of home comfort priorities:

• Outdoor Space: Searches for apartments with outdoor space have increased by 116.6%.
• Pools and Gyms: The demand for buildings with pools and gyms is rising.
• Amenities are Key: Amenities are becoming increasingly important to New Yorkers.
• Staying Home: More people are valuing comfortable home environments.
• New Normal: Hybrid work and poor air quality are making staying home more appealing.

The pandemic shifted our lives in a lot of ways, and one of those was a renewed focus on home. As we continue to navigate the realities of work-from-home and hybrid arrangements, New Yorkers will be looking for more reasons to enjoy their homes in 2025. This doesn't only mean a comfortable living space but also a strong suite of building amenities.

What are New Yorkers looking for specifically? Well, while nationally Zillow is reporting that “pet-friendliness” is a non-negotiable amenity, things are slightly different in our city. Searches for apartments with outdoor space have jumped by 116.6%, whereas searches for pools and gyms have gone up by 61.8% and 11.2% respectively. Of course, in-unit laundry and central air will remain must-haves for most New Yorkers. However, the desire for extra amenities that elevate the home experience seems to be growing stronger.

Building amenities, of course, aren’t exactly new to the city, but they're becoming even more essential for people when they consider a new home or rental. Traditionally, a long list of amenities has come with an even bigger price tag. Given how high prices are already in NYC, this means people are willing to spend even more for a little more convenience and comfort. As long as you are living in this city, you should at least live well! And, with hybrid work situations and more air quality alerts in the recent years, there's an increasing trend to stay home and enjoy the things that matter.

I feel like this prediction highlights an evolution in what people want from their homes. It's not just about a place to sleep; it's about a sanctuary, a place where you can relax, work, and socialize. In a city that can be so hectic and fast-paced, having that haven of comfort at home is worth every penny.

My Thoughts on the Market as a Whole

The NYC housing market is complex, and it’s always changing. These predictions are a good start, but as I always say, you can never be 100% sure what the future holds. I do think that affordability will continue to be a driving force. Buyers and renters are becoming more strategic about what they want and what they're willing to pay for, and that's something that I think will remain consistent.

While things like co-ops making a comeback and the luxury market re-emerging are good signs, I think that renters will also have more power as the market shifts. Ultimately, the key to success in this market will be understanding the trends and being prepared to adapt. So, keep your eyes peeled and stay informed. This is going to be a wild ride, but I'm sure if we are informed, we'll all navigate it with success.

Thinking about buying or selling in New York City? The NYC real estate market forecast is something everyone should be paying attention to. It's a complex beast, influenced by interest rates, economic shifts, and, of course, the sheer energy of the city itself. Let's dive into what we can expect.

The Current State of the NYC Real Estate Market

Right now, the NYC real estate market is a bit of a mixed bag. According to Zillow, as of September 30th, 2024, the average home value in New York City sits at $757,540. That's a 2.1% increase year-over-year, showing steady, albeit not explosive, growth. Homes are spending about 68 days on the market before going pending.

However, looking at the broader New York-Newark-Jersey City metropolitan area paints a slightly different picture. The average home value here is $672,829, a more significant 7.0% increase year-over-year, with homes selling even faster—around 28 days. This disparity highlights the importance of focusing on specific NYC neighborhoods when analyzing the market.

Metric	Value
Average Home Value (NYC)	$757,540
Year-over-Year Change (NYC)	2.1%
Days on Market (NYC)	68 days
Average Home Value (NY-NJ-CT)	$672,829
Year-over-Year Change (NY-NJ-CT)	7.0%
Days on Market (NY-NJ-CT)	28 days

This data suggests a strong but potentially moderating market. The faster sales in the broader region might indicate higher demand in suburban areas compared to the city itself. The slower pace in NYC could point to a more cautious buyer's market, perhaps due to factors like higher interest rates.

Key Factors Influencing the NYC Real Estate Market Forecast

Several factors contribute to predicting the future of the NYC real estate market. Let's break down the most significant ones:

• Interest Rates: The Federal Reserve's interest rate policy heavily impacts mortgage rates. Higher rates make borrowing more expensive, potentially cooling down the market by reducing buyer demand. Lower rates, conversely, could fuel a more active market. Predicting interest rate movements is tricky, but keeping an eye on Fed announcements is crucial.
• Economic Conditions: The overall health of the US economy plays a major role. A robust economy typically leads to higher demand for housing, pushing prices up. Conversely, an economic downturn can lead to decreased demand and potential price corrections. We need to watch indicators like employment rates, inflation, and consumer confidence.
• Inventory Levels: The number of homes available for sale (inventory) significantly influences prices. Low inventory generally leads to higher prices due to increased competition. Higher inventory can create a buyer's market, potentially leading to price drops. Currently, New York City has 16,335 homes for sale (as of September 30th, 2024) and 2,653 new listings during the same period. This is a relatively low inventory level for such a large city.
• Luxury Market Trends: NYC has a significant luxury real estate sector. This segment is often more sensitive to economic fluctuations. Changes in the luxury market can signal broader trends in the overall market.
• Government Regulations and Policies: Local, state, and federal regulations can all impact the market. Changes in zoning laws, tax policies, and building codes can affect supply and demand. It’s important to stay updated on the local political landscape, paying attention to relevant regulations.

Regional Variations within NYC

It's crucial to remember that “NYC” is a vast area. The market in Manhattan will differ greatly from Brooklyn, Queens, or the Bronx. Areas with strong job growth, good schools, and desirable amenities will generally outperform others.

Here's a glimpse of some regional trends based on Zillow data from September 30th, 2024:

Region	Year-over-Year Change (Sept 2023 – Sept 2024)	Predicted Change (Oct 2024 – Sept 2025)
New York MSA	0.3%	-0.4%
Buffalo MSA	0.2%	1.4%
Rochester MSA	0.3%	2.2%
Albany MSA	0.2%	0.3%

This shows that while NYC as a whole may see a slight dip, other areas within the state are predicted to see growth. This underscores the need for granular market research.

Will Home Prices Drop? Will it Crash?

The question on everyone's mind: will the NYC real estate market crash? A complete crash seems improbable, given the fundamental strength of the city's economy and limited supply. However, we could see some price adjustments, particularly if interest rates remain high or the broader economy weakens. It's unlikely we will see the dramatic price drops seen during previous market downturns.

NYC Real Estate Market Forecast for 2026

Looking ahead to 2026, I anticipate a gradual market correction for NYC, with a possible slight price decrease of around 1-3%, depending heavily on interest rate movements and broader economic performance. However, I still foresee that particular neighborhoods with high desirability will retain their value well. The next couple of years will be critical as the NYC housing market finds its footing amidst these changing dynamics, especially with anticipated economic shifts.

Closing Thoughts on the NYC Housing Market

The NYC real estate market is dynamic and complex. While a crash is unlikely, some price corrections or slower growth may occur in certain areas. Understanding the interplay of factors discussed here—interest rates, economic conditions, inventory, and luxury market trends—is essential for navigating this exciting yet unpredictable market.

Remember, this is just a forecast. Consulting with a qualified real estate professional for personalized advice tailored to your specific circumstances is always recommended.

This article unpacks everything you need to know, including median home values, market tendencies, and valuable insights for navigating the competitive housing market of New York.

New York City boasts one of the most recognizable housing markets in the world. Fueled by a vibrant economy and iconic status, it consistently attracts a wave of residents seeking a piece of the Big Apple dream. However, before diving into this dynamic market, understanding current trends and price points is crucial.

This year is shaping up to be a pivotal moment in real estate, marked by evolving demand, shifting supply dynamics, and changing pricing patterns. With the impending impact of fluctuating mortgage rates, the NYC housing market is poised for what could be a transformative year.

New York City Housing Market Report – 2024

 

Home Sales

The home sales data from StreetEasy shows a notable uptick in activity this year. In July alone, 1,984 homes entered contract, a significant 12.5% increase from the previous year. As a resident of New York City, it has been fascinating to see the landscape shift with more buyers showing intent to purchase despite historically high mortgage rates.

A keen observation from my experience is that the market is particularly vibrant for properties in the middle price segment, which is seeing a faster turnover. Homes priced between $750,000 and $1.7 million spent an average of 61 days on the market, down from 71 days last July.

The rapid movement in the mid-priced homes category illustrates a resurgence of buyer confidence as more potential homeowners feel the pinch of rising rental costs and view purchasing as a favorable long-term investment.

Home Prices

As of the latest data, the median asking price in New York City remains at $1.1 million, a figure mirrored from earlier this year, suggesting that although prices have stabilized at high levels, the peak might not be far off. It is crucial to look at these figures in the context of the broader economic environment.

With the Federal Reserve expected to cut interest rates in September 2024, mortgage rates are gradually decreasing, making home affordability a little better for buyers. However, the typical home sales are still pushing against an average median price point, which can feel daunting.

Interestingly, condo prices in Brooklyn are notably on the rise, averaging nearly $1.1 million—a 9.7% increase from last year. This continues to reinforce the notion that as neighborhoods develop and offerings diversify, some areas are becoming prime targets for higher returns. One can’t help but reflect on the shifting preferences that accompany these price trends; buyers are now leaning more towards condos over co-ops due to greater flexibility in financing options.

Housing Supply

New condos are appearing at a robust rate, signaling an important shift in inventory. For the first time since 2019, new condo listings have overtaken new co-op listings, with a remarkable increase of 5.5% year-over-year. With 3,694 condos listed between May and July, it’s clear that sellers are responding to market demands—particularly in Manhattan and Brooklyn.

From my perspective, this change is not just about numbers; it's reflective of a broader attitude towards ownership in NYC. Many buyers are now willing to consider condos over co-ops, largely due to their more lenient financing arrangements and lack of rigid application processes. This trend is particularly relevant for first-time buyers who often face hurdles in traditional co-op applications.

However, inventory is not uniform across the city. The overall housing stock remains tight despite a surge in new listings. As of July, there were 17,618 homes on the market, just a slight decline from last year, indicating that while sellers are more willing to list their homes, the inventory levels still create a competitive environment.

NYC Housing Market Trends

Analyzing the various market trends gives great insight into what to expect as we head deeper into the year. The rise in new listings combined with a decline in total inventory paints a picture of a market that is in transition. Homes in the lower third price range (under $750,000) are also witnessing increased interest, with new contracts rising 13.5% year-over-year, which indicates a growing pool of buyers looking to enter the market.

One of the more compelling aspects of the current market dynamics is the increasing prevalence of price cuts. Data indicates that 10.4% of homes on the market reduced their asking prices in July, compared to 10.1% the previous year. This suggests that while the demand remains strong, sellers might be reassessing their expectations, paving the way for more balanced negotiations as inventory rises.

Particular neighborhoods are driving the competitive nature of the market. For example, Queens has become more competitive for starter homes, with 402 new contracts being signed despite a decrease in new listings. As an observer of local trends, I find it noteworthy how neighborhoods like Jackson Heights and Astoria are emerging as hotspots due to their desirable features and more affordable pricing.

New York Housing Market – Statewide Statistics

As of July 2024, the New York housing market is showing promising signs of recovery and growth. The latest report from the New York State Association of REALTORS® highlights a number of key metrics indicating positive trends across the Empire State.

Home Sales and New Listings

In July, closed home sales experienced a 3.5% increase, rising from 9,584 units in 2023 to 9,923 homes in 2024. This increase is a clear indication that buyer demand is returning as market conditions improve. Additionally, pending sales also saw a notable uptick, with figures climbing from 9,849 homes in July 2023 to 10,618 homes in 2024.

This marks an impressive 7.8% increase, suggesting that more buyers are actively engaging in the market, reflecting a renewed confidence that is essential for a healthy real estate environment.

Moreover, new listings of homes showed a slight increase of 0.5%, moving from 13,260 listings in 2023 to 13,322 homes in July 2024. While this growth may seem modest, it is significant given the context of rising demand and stabilizing mortgage rates.

Mortgage Rates

Mortgage interest rates have continued to decline, further incentivizing potential buyers. In July, rates fell to below seven percent, with Freddie Mac reporting that the average interest rate on a 30-year fixed-rate mortgage was 6.84%, down eight-tenths of a percent from previous months. These lower rates are crucial for improving affordability, making homeownership more accessible for many prospective buyers throughout the state.

Housing Inventory

Despite the increase in sales and listings, the inventory of homes available for sale in New York has been decreasing. In July 2023, there were 29,642 homes available, while that figure dropped to 28,045 units in July 2024—a 5.4% decline in year-over-year inventory. This shrinking inventory highlights the challenges potential homebuyers may face when trying to secure a home, even as overall sales activity picks up.

Median Sales Price

Another critical indicator of the market’s health is the median sales price, which rose by 8.7% in July. The median price climbed from $400,000 last year to $435,000 this year. This increase suggests that as inventory remains tight and buyer interest grows, sellers are capitalizing on the demand by setting higher asking prices.

New York Real Estate Market Forecast 2024-2025

The New York City metropolitan area, including Newark and Jersey City, remains a hot property market, with home values averaging a cool $654,172 (Zillow) – that's a healthy jump of 7.2% compared to last year.

Houses are also flying off the shelves, typically going into pending status within 23 days. But is this a gold rush destined to continue, or are there storm clouds gathering on the horizon? Let's dive into the data and see what the future holds for New York real estate.

A Market in Transition

The forecast of a 2.2% dip by April 2025 shouldn't send chills down the spines of long-term investors. It's important to remember that real estate markets are cyclical, and periods of rapid growth are naturally followed by periods of stabilization or correction. This is a healthy pattern that allows the market to catch its breath and prevents unsustainable bubbles from forming.

While there may be a slight price adjustment in the coming year, New York City remains a desirable and dynamic place to live, and property values are likely to continue trending upwards over the long term. Savvy investors will use this potential cool-down as an opportunity to enter the market at a more attractive price point.

Numbers to Know

Here's a snapshot of the current market to help you get a grip on where things stand:

• Median Sale Price (as of March 31, 2024): $564,167. This is the real number most buyers pay, and it's a good benchmark for valuing properties.
• Median List Price (as of April 30, 2024): $699,333. This is the price sellers ask for, and it can be higher than the eventual selling price.
• Sales Over List Price (as of March 31, 2024): 44.7%. In a competitive market like New York, bidding wars are common, pushing the final price above the asking price.
• Sales Under List Price (as of March 31, 2024): 43.6%. Not all properties spark bidding wars. This figure indicates a healthy balance in the market, with some properties selling below the asking price.

As depicted in this graph of Zillow, home values have increased year-over-year. This upward trend is expected to persist, with forecasts indicating continued growth over the next year.

Regional Housing Market Forecast in New York

The New York housing market presents a picture of moderate and steady growth across various regions. While the data provided doesn't include figures for May 31st, 2024, it offers projections for July 31st, 2024, and April 30th, 2025. Let's delve into what these forecasts suggest for potential buyers and sellers in different parts of the state.

Upstate New York: Steady Climb Expected

Across upstate New York, including areas like Kingston, Rochester, Syracuse, Jamestown, Olean, and Hudson, forecasts indicate a trend of consistent growth. These regions are expected to see price increases ranging from 0.9% to 2.1% by July 31st, 2024, with projections for continued growth reaching 1.7% to 3.2% by April 30th, 2025. This suggests a stable market with consistent appreciation for sellers and potentially competitive conditions for buyers.

Central and Western New York: Moderate Growth Anticipated

Regions in central and western New York, such as Amsterdam, Seneca Falls, Buffalo, Batavia, Auburn, Gloversville, Utica, and Binghamton, are also forecast for moderate growth. Price increases are expected to fall within a range of 1.2% to 2.1% by July 31st, 2024, with projections for a slower but steady increase reaching 0.9% to 1.8% by April 30th, 2025. These areas are likely to see a balanced market with opportunities for both buyers and sellers.

Important Considerations for the New York Market

While the forecast suggests a generally positive outlook for the New York housing market, some external factors can influence local conditions. Here are some key considerations:

• Impact of National Trends: National economic conditions and national housing market trends can affect the New York market. Staying informed about broader market dynamics is crucial.
• Local Market Dynamics: Specific factors like job markets, demographics, and available inventory can influence housing prices in individual cities and towns. Researching the specific area you're interested in is vital.
• Inventory Levels: The level of available inventory plays a significant role. Low inventory can lead to bidding wars and price increases, while high inventory can favor buyers.

Places in New York Poised for Home Price Increases

RegionName	BaseDate	30-04-2025
Kingston, NY	30-04-2024	3.2%
Rochester, NY	30-04-2024	3.1%
Syracuse, NY	30-04-2024	2.8%
Jamestown, NY	30-04-2024	2.7%
Olean, NY	30-04-2024	2.1%
Hudson, NY	30-04-2024	2%
Amsterdam, NY	30-04-2024	1.7%
Seneca Falls, NY	30-04-2024	1.7%
Buffalo, NY	30-04-2024	1.4%
Batavia, NY	30-04-2024	1.3%
Auburn, NY	30-04-2024	1.2%
Gloversville, NY	30-04-2024	1%
Utica, NY	30-04-2024	0.9%
Binghamton, NY	30-04-2024	0.5%
Oneonta, NY	30-04-2024	0.2%

This table presents the forecasted trends for April 2025 in various regions across New York State, providing insights into the anticipated housing market conditions.

Overall, the New York housing market offers opportunities for both buyers and sellers seeking a stable and growing market. By understanding regional variations, the impact of external factors, and local market dynamics, informed decisions can be made in this dynamic landscape.

Will the New York Housing Market Crash?

Experts predict a dramatic crash in New York's housing market is unlikely in 2024. Two key factors underpin this forecast:

• Persistent inventory shortage: Unlike the situation leading up to the 2008 housing crisis, the current market faces a critical imbalance – there simply aren't enough houses available to meet buyer demand. This scarcity helps prevent a freefall in prices because there's still a competition to buy the limited properties on the market.
• Underlying strength in demand: New York City's status as a global center for finance, business, and culture continues to attract people. This steady population growth translates to a consistent need for housing, keeping demand afloat.

However, a cool-down from the recent seller's market frenzy is likely. Here's a breakdown of what to expect:

• Moderated price growth: The double-digit price increases seen in recent years are likely to ease up. Forecasts suggest a shift towards slower growth, with prices potentially stagnating or even dipping slightly.
• Reduced bidding wars: With rising mortgage rates and a more cautious economic outlook, buyers may be less aggressive. This could lead to a decrease in cutthroat bidding wars, making the buying process somewhat less competitive for hopeful homeowners.

Beyond the immediate forecast, here are some additional factors that could influence the New York housing market:

• Interest rates: Mortgage rates are a significant factor in housing affordability. If rates continue to rise, it could dampen buyer enthusiasm and put downward pressure on prices. Conversely, a drop in rates could reignite a buying frenzy.
• National economic conditions: A strong national economy typically translates to a healthy housing market. Conversely, an economic downturn could lead to job losses and a decrease in housing demand.
• Government policies: Government policies, such as tax breaks for first-time homebuyers or regulations on short-term rentals, can also impact the housing market.

Overall, while a crash is improbable, the New York housing market is likely to transition into a more balanced state. This could benefit buyers who have been priced out of the market in recent years. However, sellers may need to adjust their expectations regarding sale prices and timelines. It's important to stay informed about the latest market trends and economic data to make informed decisions about buying or selling a home in New York.

New York Rental Market Report

The Zumper New York City Metro Area Report analyzed active listings across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The New York one-bedroom median rent was $2,430 last month. New York City was the most expensive market with one-bedrooms priced at $4,280 whereas Newark was the most affordable city with rent priced at $1,470.

Here are the places where it makes sense to invest in rental properties in the New York City Metro Area. These are the places where the demand for rentals is growing strong in 2024.

The Fastest Growing Cities For Rents in New York City Metro Area (Y/Y%)

• New York City had the fastest growing rent, up 19.9% since this time last year.
• West New York saw rent climb 18.7%, making it second.
• Edison rent was the third fastest growing, jumping 14.2%.

The Fastest Growing Cities For Rents in New York City Metro Area (M/M%)

• Poughkeepsie had the largest monthly rental growth rate, up 6.2%.
• Bridgeport rent was the second fastest growing, climbing 5%.
• Norwalk was third with rent growing 2.2%.

Top Real Estate Estate Markets in New York

Buffalo real estate market

The Buffalo real estate investment offers a surprisingly good deal with low prices and relatively high rental rates. The Buffalo real estate market is dominated by older homes. A majority of homes in the Buffalo housing market were built before World War 2. Interestingly, this also means that many small apartment buildings are designed to serve a population that rented small units close to their jobs.

For example, roughly a third of homes are single-family detached homes, while almost half take the form of small apartment buildings. This creates an excellent opportunity for those in the market for Buffalo rental properties. You could buy a small apartment building with multiple tenants for the cost of a single rental property in a more expensive New York real estate market.

Syracuse real estate market

Syracuse's real estate market offers cheaper property with a higher return on investment and a less hostile legal climate. It is one of the better choices if you want to invest in New York state. Another issue that factors into the equation is the job market. Lots of cities have a great quality of life but almost no one can afford to live there.

The Syracuse housing market ranked 6.3 out of 10 for its job market. That’s better than rural and much of upstate New York. And it is why there is a slow trickle of people moving in to replace those who leave. That’s why the Syracuse real estate market has a net migration of 5 or a stable population. This is in sharp contrast to the depopulation seen in most Rust Belt cities. It also means Syracuse's real estate investment properties will hold their value for the foreseeable future if they don’t appreciate it.

Albany real estate market

Albany is a steadily appreciating real estate market. While it isn’t as famous or hot as NYC, it offers an affordable entry point and a massive pool of perpetual renters. Though it may not be somewhere you want to live, many locals are choosing to stay and make their homes here. And that will continue to drive demand for Albany real estate investment properties as long as they are priced right.

Rochester real estate market

You can also consider Rochester. The Rochester real estate market is stable, offering slow appreciation, affordable properties to outsiders, and good returns. It has strong, long-term potential that is only buoyed if NYC collapses. And this is one of the reasons why being everything the Big Apple isn’t is in your favor.

The Rochester real estate market enjoys a healthy population profile. Roughly a quarter of the population consists of children, and many are likely to remain due to the healthy job market. It also means that the Rochester housing market won’t crash if the job market weakens the way San Francisco collapses whenever the tech bubble bursts. Others choose to remain here because of the low cost of living.