New York City Real Estate Prices, Market Trends, and Predictions for 2025-2026
The latest trends in New York City's (NYC) housing market for Summer 2025 reveal a mix of increased sales activity, relatively stable home prices with some borough-specific variations, a slight rise in rents, and nuanced market dynamics heading into 2026.
**Sales Activity**
New contract signings have risen for the ninth consecutive month as of May 2025, with a 5.8% year-over-year increase across the city. This growth is primarily driven by pent-up demand and slightly more favourable mortgage rates, making buying more accessible. Brooklyn and Queens are leading the way with more active markets and inventory compared to Manhattan, which has seen slightly tighter supply, especially in July 2025 where Manhattan inventory is about 10% below required levels and is expected to dip further into early fall.
**Home Prices**
Prices are holding steady overall. Manhattan luxury condos show an average price around $2.9 million with a median of $1.6 million, accompanied by a 6% average discount on asking prices, indicating some room for negotiation. Brooklyn features a median condo price near $1.1 million with moderate discounts (~3%) and faster deal flows. Queens remains the most affordable borough with median prices around $625,000 and a 31% reduction in average days on market, indicating strong demand and buyer urgency. Across the board, prices have not seen dramatic swings but exhibit borough-level differences reflecting supply-demand variations.
**Rental Market**
Rents are experiencing a slight rise, particularly as sales activity picks up. Brooklyn and Queens provide more rental options, but rents are generally creeping upwards this summer.
**Market Dynamics and Forecast 2025-2026**
The market feels somewhat "frozen" due to buyers being cautious, sellers reluctant to lower prices further, and mortgage rates holding steady above the 5.5% threshold needed to stimulate stronger activity. Sellers may still need prices to fall 10-15% or require substantial increases in incomes to reboot momentum fully. Supply is tightening while demand declines at a slower pace, leading to upward pressure on UrbanDigs’ market pulse index.
Experts forecast a continued healthy but competitive market in NYC through 2025 and into 2026, with selective price stabilization and moderate sales growth, contrasting with other markets like Houston where price declines are forecasted.
In summary, Summer 2025 in NYC’s housing market is characterized by increased home sales, steady pricing with notable borough differences, slightly higher rents, and a cautiously optimistic outlook for 2025-2026, shaped by tight inventory and financing conditions.
Elsewhere in the United States, home sales decreased by 0.7% year-over-year in May 2025. The number of homes for sale in NYC increased by 11.2% year-over-year in May 2025. Brooklyn and Queens are seeing slower rent growth and increasing inventory, making it more favourable for renters in these boroughs. The citywide median asking rent in May 2025 was $3,900, with Manhattan experiencing accelerating rents and decreasing inventory.
Lawrence Yun, Chief Economist at the National Association of Realtors, predicts existing home sales to increase by 6% in 2025 and 11% in 2026, while new home sales are predicted to increase by 10% in 2025 and 5% in 2026.
- The real estate industry in NYC is witnessing a rise in new contract signings, with a 5.8% year-over-year increase, due to increased buyer accessibility brought about by slightly more favorable mortgage rates.
- The latest news in NYC's housing market indicates a slight growth in rents, particularly as sales activity picks up, with Brooklyn and Queens providing more rental options but experiencing upward creeping rents.
- Investors looking at the rental market in NYC might find opportunities in Brooklyn and Queens, where the market is showing slower rent growth and increasing inventory, making it more favorable for renters.
- Despite the overall steady pricing in the housing market, the real-estate market in NYC is expected to remain competitive, with selective price stabilization and moderate sales growth forecasted through 2025 and into 2026.
- The housing-market pulse index is experiencing upward pressure due to tightening supply and a declining demand rate at a slower pace, indicating a cautiously optimistic outlook.
- In the finance world, experts predict an increase in existing home sales by 6% in 2025 and 11% in 2026, while new home sales might see a 10% increase in 2025 and a 5% increase in 2026, signaling potential growth in the investment aspect of the real-estate market.
