Real Estate Insights

Manhattan Residential Market Report | Q2 2025​

 

Manhattan’s residential market held steady in Q2 2025, with closed sales increasing 14.5% from the previous quarter and 5.2% year-over-year—underscoring the market’s resilience amid broader macroeconomic uncertainty.

​

Strength persisted at the top of the market, where cash-ready buyers and long-term investors continued to act with conviction. Many are driven by lifestyle needs, generational wealth transfers, and a desire to lock in prime assets. The ultra-luxury segment saw significant growth, with closings in the $10M+ range surging 66.7%. A large share of these buyers are relocating from California and Florida, seeking best-in-class residences that combine long-term value with premium amenities. High liquidity has kept this segment largely insulated from interest rate pressures, with urgency growing as competition intensifies.

​

Condos continued to outperform co-ops, with sales rising 13.7% year-over-year. This demand is driven by greater flexibility, ease of ownership, and rental potential. New development properties with luxury amenities remain especially desirable, reflecting buyers’ increasing preference for convenience and certainty. In contrast, co-ops are seeing more selective demand—often due to slower board approval processes and restrictive subletting policies—yet they still present compelling value in certain sectors.

​

Contract activity dipped 4.9%, reflecting limited inventory and a momentary pause among some buyers navigating ongoing uncertainty. While many remain actively engaged, some are adopting a wait-and-see approach in anticipation of policy clarity or new inventory. Interestingly, the $3M–$5M segment defied the broader trend, with contract activity up 18.4%, largely fueled by next-generation buyers seeking more space.

​

Total inventory increased modestly to just under 6,700 listings, a 4.4% rise year-over-year. However, new listings declined by 14.1%, as many homeowners remain reluctant to sell due to locked-in, favorable mortgage rates. This reluctance continues to limit options across all price points and intensifies competition for well-priced, move-in-ready homes.

​

Looking ahead, attention is turning to New York City’s mayoral race, which may have meaningful implications for real estate and investor sentiment. While the full impact remains to be seen, some market participants are proceeding with increased caution.

June began on par with last year—415 contracts were signed between June 1–13, nearly identical to 416 during the same period in 2024. However, activity slowed significantly in the latter half of the month, coinciding with heightened geopolitical tensions following the Israel-Iran conflict.

​

Despite these headwinds, Manhattan’s long-term fundamentals—limited supply, global appeal, and strong lifestyle demand—remain intact. The market continues to demonstrate resilience and strength, reaffirming its position as one of the most robust real estate markets globally.

​

National Report- June 2025

​​​

Ongoing volatility in political/economic conditions took some of the wind out of the sails of the spring real estate market, usually the most dynamic of the year. Uncertainty regarding the economy and possible implications for personal circumstances understandably made a proportion of buyers and sellers more hesitant about moving forward with one of the largest financial transactions of their lives. Still, while sales in most markets slowed year over year, the change was not profound and may readjust with new macroeconomic developments.

Note that virtually all of May's closed sales-the basis for most of the market data featured in this report-were negotiated before the May 12 reversal of China-tariff policies, which triggered an enormous recovery in the stock market, and significant rebound in consumer confidence (but which still remained very low by historical standards). The latest inflation reading remained subdued, but concerns continue regarding the possible impact of tariffs. Interest rates have been stable for the past 2 months, but in the absence of a meaningful decline did not provide the hoped-for boost to buyer demand. The Fed once again left their benchmark rate unchanged.

Compared to 1 year ago, median sales prices for houses and condos/co-ops in May rose 1.3% and .7% respectively. Active listings rose 6% from April and 20% year over year, and months-supply-of- inventory-a comparison of demand vs. supply-hit its highest reading in 6+ years. Sales volume climbed 11.5% from April but was 4% lower than a year ago. 60% of sales went into contract within 1 month of coming on the market, and 28% sold above asking price. Cash purchases accounted for 27% of sales; price reductions hit a 6-year high; and over the past 3 months, 6% of contracts were cancelled before close of escrow and 13% saw delays in closing. The median time-on-market to offer acceptance was 27 days-faster than in April, but slower than the 24 days in May 2024. Distressed- property sales ticked up to a still very low 3%.

 

NYC Housing Market Summary

 

Sales Market
New York City’s sales market continued its upward trend in May, with 2,236 homes entering contract, a 5.8% year-over-year increase, marking the ninth consecutive month of growth. This momentum is largely attributed to pent-up buyer demand and slightly lower mortgage rates compared to last year.

​

New listings rose 0.5% year-over-year, providing more inventory, but the market remains competitive—homes sold at 97.5% of asking price on average, and the most popular listings achieved 100% of asking price, emphasizing the importance of strategic pricing and marketing.

​

Median asking price across NYC was $1.1 million, up 2.3% year-over-year, with the largest increase seen in Queens (+10.6%).

 

Rental Market
The citywide median asking rent reached $3,900, a 2.7% increase from May 2024, primarily driven by Manhattan, where rents rose 4.4% and inventory declined 6.4%. High mortgage rates continue to keep potential buyers in the rental market longer, tightening vacancy.

​

Brooklyn and Queens saw slower rent growth but increasing inventory (+2.4% and +7.7%, respectively), with 8 of the 10 fastest-growing rental markets located in these boroughs. Notably, Gowanus led the surge, with inventory up 226% year-over-year.

 

The share of no-fee rentals rose to 56%, the highest for any May since the pandemic, likely in anticipation of the FARE Act (effective June 11), which shifts broker fee responsibility to the hiring party. This change is expected to ease upfront costs for renters without significantly impacting base rents.

​

Key Data Points (YoY unless noted):

Sales:

Median Asking Price: $1.1M (+2.3%)

Homes Entering Contract: 2,236 (+5.8%)

Median Days on Market: 57 (↓2 days)

​

Rentals:

Median Asking Rent: $3,900 (+2.7%)

Rental Inventory: 36,145 (↓1.2%)

No-Fee Rentals: 56%

Share of Rentals with Price Cuts: 12.7%

Share Offering Concessions (e.g., free rent): 12.5%

​

Outlook:
While buyers have more options than last year, competition remains strong for well-priced homes. In rentals, growing inventory—particularly in the outer boroughs—may help stabilize rent growth, while regulatory changes improve transparency and affordability for tenants.​​​​

​

Please be aware that reports provide broad generalizations summarizing conditions and trends across numerous local markets. While the data is sourced from reputable institutions, there may be occasional inaccuracies. National reports represent a generalized view of values, conditions, and trends across diverse markets, and data from reliable sources may contain errors and are subject to revision. Additionally, figures from previous periods may be labeled as preliminary. All numerical data should be considered approximate.