Real Estate Insights

Manhattan Residential Market Report | May 2026​​​

The Manhattan residential market continued to show strength in May 2026, with pricing and activity increasing across several key metrics. The average sale price rose to $2.50 million, up 11.4% from April and 9.2% year-over-year, while the median sale price increased to $1.375 million, representing a 5.8% gain compared to both the prior month and May 2025. Average price per square foot reached $1,599, up 4.6% month-over-month and 4.3% annually. Market pace improved as average days on market declined to 119 days from 131 in April, while inventory increased modestly to 6,936 units. Demand remained healthy, with contracts signed rising 4.1% month-over-month and 5.8% year-over-year to 1,141, and closed sales increasing 9.7% from April, though remaining slightly below last year's level.

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The condominium market led much of the market's growth. Average condo sale prices climbed to $3.22 million, up 7.4% from April and 6.6% from a year earlier. Median prices increased 3.1% year-over-year to $1.85 million, while average price per square foot reached $1,816. Inventory expanded 7.5% month-over-month but remained below 2025 levels. Buyer activity was particularly strong, with contracts signed surging 18.0% year-over-year and sales rising 21.8% from April and 7.0% annually, indicating continued demand for condominium product despite higher price points.

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The co-op market also posted solid gains, although activity was more mixed. Average sale prices rose 5.3% month-over-month and 7.6% year-over-year to $1.54 million, while median prices held steady at $925,000. Average price per square foot increased 7.1% annually to $1,166, and average marketing time declined to 115 days. Inventory remained constrained, down 10.2% from May 2025. However, while contracts signed were relatively stable, closed sales fell 11.4% year-over-year, suggesting that limited inventory may be restricting transaction volume despite improving pricing fundamentals.

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The townhouse market experienced significant volatility due to its smaller transaction volume. Average sale prices surged 73.3% from April and 22.8% year-over-year to nearly $13.8 million, while average price per square foot increased 18.7% annually to $2,006. Median sale price, however, fell 13.8% from May 2025, highlighting the impact of individual high-end transactions on averages. Inventory remained limited, down 8.5% year-over-year, and both contracts signed and closed sales declined compared to last year. On a year-to-date basis, townhouse average sale prices are up 12.1% compared to 2025, with shorter marketing times and lower seller discounts, although transaction volume remains below last year's pace.

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Overall, May 2026 reflected a healthy Manhattan market characterized by rising prices, improving absorption rates, and sustained buyer demand, particularly in the condominium sector. Limited inventory continues to support pricing across most property types, while reduced days on market and increasing contract activity suggest favorable conditions for sellers heading into the summer season.

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National Report | May 2026

With Sales Data through April​​​​

As we enter the peak homebuying season at the end of May, both the housing market and broader economy are beginning to show encouraging signs of improvement. Equity markets have reached new highs, the labor market is showing early signs of recovery, and unemployment and jobless claims remain relatively low. Most notably, recent data points to improving hiring and job creation activity.

 

This year, the hiring rate has become one of the most important indicators for the housing market, even more so than unemployment figures. Relocation for employment remains a major driver of housing demand, and the historically low hiring activity seen throughout much of 2026 has significantly limited buyer movement and overall housing activity. In March, hiring levels were near pandemic-era lows, but April saw a rebound to 3.5%, an encouraging sign that could support stronger home sales through the remainder of the year if momentum continues.

 

At the same time, inflation remains a key concern. Rising energy costs, tariffs, government spending, and ongoing geopolitical uncertainty have continued to place upward pressure on prices. As a result, mortgage rates have climbed to their highest levels of the year, as stronger employment and persistent inflation are not conditions that typically lead to lower interest rates. Until inflation moderates, significant rate relief from the Federal Reserve remains unlikely.

 

There is also growing debate around whether strong stock market performance can meaningfully support the housing market. In markets like San Francisco, the AI-driven wealth effect has clearly boosted prices and rents, but it remains uncertain whether consumers across the broader country will feel financially empowered by rising equities or constrained by inflationary pressures.

 

Inventory trends are also shifting. After several years of steady growth in housing supply nationally, inventory levels have stabilized and may even begin declining in certain regions. If this trend continues through 2026, it could create greater price stability heading into 2027.

 

Some markets may already be nearing a turning point. In cities such as Austin and Dallas, inventory has recently fallen below last year’s levels after years of rapid increases and pricing pressure. Meanwhile, markets like New York City and Chicago continue to experience extremely limited inventory, competitive bidding, and upward pricing pressure.

 

One major factor to watch moving forward is whether hiring activity continues to improve. Stronger job growth, particularly in the Sunbelt, could eventually increase housing turnover and create additional inventory opportunities in northern markets.

 

Overall, the market remains highly dynamic, with economic trends, hiring activity, inflation, mortgage rates, and inventory levels all playing critical roles in shaping housing activity for the remainder of 2026 and beyond.

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Manhattan Residential Market Report | Q1 2026​​

The Manhattan market in Q1 2026 showed a modest slowdown in activity, but importantly, this was driven more by external factors than any fundamental weakness. Severe winter weather, ongoing economic uncertainty, and a sharp drop in new listings led to slightly fewer transactions, with sales down about 3% year-over-year and contracts down roughly 7%. That said, this type of pause is not unusual given the conditions, and it reflects timing more than a shift in underlying demand.

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What’s particularly notable is that pricing remained strong across the board. The median sale price increased to $1.275M, up over 8% from last year, and average prices also rose. This tells us that while some buyers were more selective, those who were active were still willing to pay for quality. At the same time, inventory remains constrained—down over 5% year-over-year—which continues to support pricing and limits downside risk. Sellers, for the most part, are holding firm rather than discounting aggressively.

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At the higher end, the market continues to perform exceptionally well. We saw a significant increase in activity between $10M and $20M, and strong momentum in ultra-luxury sales as well. This segment continues to attract confident, well-capitalized buyers who view Manhattan as a long-term store of value, even in more uncertain macro environments.

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Looking ahead, the expectation is for a more active spring market as conditions normalize and more inventory comes online. As always, real estate decisions tend to be driven by life events more than short-term market fluctuations, and demand for well-priced properties remains steady. Overall, Manhattan continues to show resilience and long-term strength, particularly for properly positioned homes.

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Manhattan Ultra-Luxury Market Report | 2025

New York City continues to attract renewed interest from both domestic and international buyers, driven by factors that extend well beyond traditional market fundamentals. At the ultra-luxury level, ownership is increasingly viewed as a long-term, emotional investment—an opportunity to secure a lasting stake in the city itself. Developers are responding with once-in-a-generation residences such as 80 Clarkson, 140 Jane, 125 Perry, and the Flatiron Building, many of which are achieving record-setting pricing. Despite political shifts, market volatility, and broader global uncertainty, New York City remains one of the most resilient and enduring luxury assets in the world.

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The 2025 market underscored a clear trend within Manhattan’s $10 million-plus segment: when a property is truly best-in-class and introduced with disciplined, thoughtful positioning, buyers respond decisively. While local political developments contributed to a brief slowdown in the third quarter following a strong first half, activity rebounded toward year-end and is carrying momentum into 2026. Demand has been especially strong among domestic buyers seeking top-tier product across luxury condominiums, prime prewar cooperatives, and trophy townhouses—reflecting sustained confidence in the long-term strength of the city’s real estate market.

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Throughout 2025, the ultra-luxury sector also navigated heightened geopolitical uncertainty alongside an increase in tax-motivated sellers. Even so, transactions above $10 million accelerated, particularly in the latter half of the year, as ultra-high-net-worth buyers continued to view trophy properties in iconic, collector-grade buildings as strategic acquisitions. For these buyers, value extends beyond square footage to include privacy, security, wealth preservation, and exceptional amenities—factors that drove standout performance in both premier resales and top-tier new developments.​

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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.