The NYC housing market is currently seeing more sales activity and a slight rise in rents, with Brooklyn and Queens offering more options than Manhattan. Let's dive into the details and break down what these trends mean for you, whether you're buying, selling, or renting.

NYC Housing Market Trends: What's Happening in Summer 2025?

Home Sales

One of the biggest stories in the NYC home sales market right now is the increase in new contract signings. According to a recent report by StreetEasy, May 2025 marked the ninth consecutive month of growth, with a 5.8% year-over-year increase in new contract signings across New York City. That's a pretty big jump!

What's driving this? Experts believe it's due to pent-up demand from buyers who've been waiting for the right moment to jump in. Lower mortgage rates are also a factor making it a little easier for people to afford their dream homes.

• Key Takeaway: Sales are up, indicating a healthy, competitive market.

Comparison with National Home Sales in the U.S. in May 2025

While NYC is seeing positive sales growth, it's important to compare that to what's happening nationwide. Interestingly, recent data shows that national home sales in the U.S. actually decreased by 0.7% year-over-year (down from 4.06 million in May 2024), according to the National Association of Realtors (NAR).

• Key Takeaway: NYC is bucking the national trend and showing resilience in its sales market.

NYC Home Prices

Are Home Prices Dropping?

That's the question on everyone's mind, right? In NYC, the median asking price in May 2025 was $1.1 million, which is up 2.3% year-over-year. So, no, home prices aren't really dropping overall. They're holding steady and even increasing slightly. However, it's very hyperlocal. Different neighborhoods have different trends.

• Manhattan: The median asking price was $1,495,000.
• Brooklyn: The median asking price was $1,100,000, up 3.9% year-over-year.
• Queens: The median asking price was $695,000, a more significant increase of 10.6% year-over-year.

Comparison with Current National Median Price in the U.S.

Nationally, the median home price in May 2025 was $422,800, representing a 1.3% year-over-year increase. Clearly, NYC is significantly more expensive than the national average!

NYC Housing Supply

Here's where things get interesting. The number of homes for sale in NYC is increasing. Across the city, 3,989 homes entered the market in May, up 0.5% from a year ago. More sellers are feeling encouraged to list their properties, likely due to those elevated asking prices and slightly lower mortgage rates (compared to last year, not necessarily right now).

• NYC: 17,940 homes for sale (+11.2% year-over-year)
• Manhattan: 9,581 homes for sale (+9.4% year-over-year)
• Brooklyn: 4,402 homes for sale (+13.6% year-over-year)
• Queens: 2,996 homes for sale (+14.9% year-over-year)

Is NYC a Buyer's or Seller's Housing Market?

Despite the increase in inventory, it's not quite a buyer's market in NYC. While there are more options, the most viewed 20% of listings are still selling at their final listed price, with no price reductions. This means that the competition for desirable properties remains fierce. If you're a buyer, you need to be ready to act fast and potentially offer at or above asking price for the most sought-after homes.

Market Trends

Impact of High Mortgage Rates

Mortgage rates play a huge role in the housing market. As of July 3, 2025, the average 30-year fixed mortgage rate is around 6.67%, and the 15-year FRM is about 5.8%. While these rates might seem high compared to a few years ago, they have been relatively stable recently.

The good news is that the average 30-year fixed-rate mortgage has decreased for the fifth consecutive week. Lower rates tend to encourage more buyers to enter the market, potentially driving up demand and prices.

Most forecasts predict the 30-year FRM rate will end 2025 between 6.0% to 6.5%. Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April.

Here's a quick recap of the current mortgage rate situation:

Key Factors Affecting the NYC Housing Market

• Pent-up Demand: Many people have been waiting for the right time to buy, creating a backlog of demand that's now being unleashed.
• Mortgage Rates: While still elevated, the recent stabilization and slight decrease in rates are encouraging for both buyers and sellers.
• Inventory Levels: The increase in homes for sale provides more options for buyers, but competition for desirable properties remains strong.
• Strategic Pricing: Sellers need to price their homes strategically to attract buyers, while buyers need to be prepared to act quickly and possibly offer above asking price for the best properties.

NYC Rental Market

Let's switch gears and talk about the NYC rental market. The citywide median asking rent in May 2025 was $3,900, up 2.7% from a year ago. While rents are still high, there are some interesting trends happening in different boroughs.

• Manhattan: Rents are accelerating, with the median asking rent at $4,595, up 4.4% year-over-year. Inventory is decreasing in Manhattan, making it more challenging for renters to find options.
• Brooklyn & Queens: Rent growth is slowing down in these boroughs, and inventory is increasing. This means renters have more choices and potentially more negotiating power. Brooklyn's median rent is $3,634 (+3.8% YoY) and Queen's $3,150 (+3.3% YoY).

Fastest-Growing Rental Markets:

It's fascinating to see which neighborhoods are experiencing the most significant changes in rental inventory. Here's a look at the top 10 fastest-growing rental markets in NYC in May 2025:

As you can see, Brooklyn and Queens dominate the list, indicating that these boroughs are offering more rental opportunities. Gowanus in Brooklyn takes the top spot with a whopping 226% increase in inventory!

FARE Act Impact

The Fairness in Apartment Rental Expenses (FARE) Act, which went into effect on June 11th, is also impacting the rental market. This law requires the hiring party (typically the landlord) to compensate the rental broker. The market share of rentals that did not charge tenants a broker fee rose to 56% last month, ahead of the FARE Act, the highest of any May since the pandemic.

The improved fee transparency will make the renting process more equitable and efficient, which will be beneficial for all sides of the market.

My Take

From my perspective, the NYC housing market is still tough but showing signs of settling. The increase in listings is a positive sign for buyers, giving them more choices. But prices are still high, and competition remains fierce for desirable properties. For renters, it's a mixed bag. Manhattan is getting pricier and more competitive, but Brooklyn and Queens offer some relief. Overall, navigating the NYC housing market requires careful planning, a good real estate agent, and a healthy dose of patience.

NYC Housing Market Forecast 2025-2026: What to Expect

Thinking about buying, selling, or just plain curious about what’s going on with real estate in the Big Apple? You're not alone! A lot of people are wondering, “What’s the deal with the NYC housing market forecast?” Well, here's the short answer: while the average home value in the New York-Newark-Jersey City area is currently $705,108, up 4.5% over the past year, experts predict a slight decline in home values over the next year. Let's break down exactly why and what the future might hold.

Let’s start with the basics. As of today, owning a home in the NYC metro area is seriously expensive. But, just like any market, things are always changing. So, what's on the horizon?

The Forecast: A Detailed Look at the Numbers

Zillow, a major player in real estate data, offers some specific predictions. Here's a peek at what they're saying, focusing on the New York-Newark-Jersey City metropolitan area (essentially, NYC and its surroundings):

So, Zillow's numbers suggest a very gradual cooling of the NYC housing market. We're not talking about a massive crash, but rather a slow easing.

NYC's Forecast Compared to the Rest of New York

It's interesting to see how the NYC housing market forecast stacks up against other areas in New York State. Here’s a quick comparison:

As you can see, many other cities in New York are expected to see growth in their housing markets, while NYC is predicted to experience slight decline. This could be due to a variety of factors, including higher initial prices, different employment trends, and varying levels of demand.

The Big Picture: National Trends

To get a better handle on things, it's important to look at the national forecast, this can influence the prices here in New York. According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), things are looking up for the housing market overall. He predicts:

• Existing Home Sales: Up 6% in 2025 and 11% in 2026.
• New Home Sales: Up 10% in 2025 and 5% in 2026.
• Median Home Prices: Up 3% in 2025 and 4% in 2026.
• Mortgage Rates: Average 6.4% in the second half of 2025 and 6.1% in 2026.

Nationally, it looks like a balancing act. More sales, more construction, and modestly increasing prices, fueled by slowly decreasing mortgage rates.

Will Home Prices Drop in NYC? Will it Crash?

Based on these forecasts, the answer is likely no, but also not rapidly rise. A major crash seems unlikely. Instead, expect a slight easing. This could mean a bit more breathing room for buyers, while sellers might need to adjust their expectations slightly.

Looking Ahead to 2026: A Possible Scenario

What about 2026? Given the national trends and Zillow's predictions, I think we'll see a continuation of the current pattern in the NYC housing market. A slight decrease in values (maybe another 1-2%), but not a dramatic fall. Much will depend on those mortgage rates too. If they drop more significantly, that could give the market a boost.

Top Real 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.

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.

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:

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.