 The Dean's List: 2025 Manhattan & Brooklyn Market Year in Review and 2026 Market Outlook |
MANHATTAN - 2025 Manhattan apartment sales rose to their highest level since 2022
- Mortgage rates declined sharply in the second half of the year: the 30-year rate is now hovering around 6.2% and is expected to go lower in 2026
- The Manhattan luxury market ($4 million+) posted an 11% increase in signed contracts vs. 2024, the second biggest year in luxury sales after 2021’s post-pandemic record year. Condos outsold coops by more than 3 to 1, and half of the condos sold were in new developments.
- 272 contracts were signed in the $10M+ segment last year - the third strongest year of the past decade - despite elevated rates and political and geopolitical uncertainty.
- Sales were up 12.5 % for $20 million+ homes compared to year ago
- In January 2026 Manhattan inventory is down 6% YOY and is at its lowest level in 10 years.
BROOKLYN- The median apartment price rose 2% in Q4 '25 vs. Q4 '24 and 6% for the full year.
- Closings for the full year 2025 rose to the second highest level since 2022
2026 MARKET OUTLOOK
Inventory remains constrained across prime neighborhoods, buyers remain highly selective, and there is no evidence of any meaningful luxury segment sell-off or capital flight despite recent media narratives around the so-called "Mamdani effect"
The luxury segment remains structurally strong: tight supply, scarce trophy inventory and continued wealth concentration provide for pricing power support, particularly for best-in-class assets. As rates continue to head lower and demand builds, Q1 2026 is setting up for a strong start to the year, and overall industry expectations are for a very active Manhattan and Brooklyn market in 2026.
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Fourth Quarter 2025 Manhattan Market Report |
2025 marked a turning point in the Manhattan apartment market as sales rose to their highest level
since 2022. Demand was strong, particularly after the presidential election, and was helped by a third
consecutive year of double-digit stock returns. NYC’s economy did well in the first three quarters of
2025, with employment reaching an all-time high of 4.261 million in August. The city’s economy has
outperformed the nation’s over the past two years and is expected to do so again in 2026.
Perhaps the best news in 2025 was the sharp decline in mortgage rates in the second half of the
year. 30-year rates are now hovering around 6.2% and are expected to go lower in 2026. While there
are concerns about the health of the U.S. labor market, so far unemployment has remained low. The
record-setting federal government shutdown also added to those concerns, as the employment and
inflation data markets and the Fed rely on was not being released.
Worries about a slowing economy combined with the uncertainty of the NYC mayoral election led to a
slowdown in sales in the fourth quarter, with closings down 9% from 2024’s fourth quarter. Prices were
essentially flat over the past year, with the average resale apartment price at $1,768,953. Unlike many
other markets, Manhattan has maintained a healthy level of homes for sale which has kept prices from
rising too rapidly. As rates continue to head lower, we expect a very active Manhattan market in 2026.
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Fourth Quarter 2025 Brooklyn Market Report |
The Brooklyn apartment market ended 2025 on a strong note, with both sales and prices
higher in the fourth quarter than a year ago. The average apartment price of $1,081,581 was
4% above 2024’s fourth quarter, while the median price rose 2% to $800,000. Closings were
6% higher than a year ago, as demand remained strong.
Looking at all of 2025, Brooklyn posted record average and median apartment prices. At just
under $1.1 million the average price was 6% higher than during 2024. The median price also
rose 6% from 2024, reaching $840,056. While not a record, the number of closings rose to its
highest level since 2022.
While there is still uncertainty hanging over the housing market, most notably a new mayor
and a slowing labor market, there are reasons for optimism. Mortgage rates fell sharply in
the second half of 2025 and are expected to continue their decline in 2026. While hiring has
been weak recently, unemployment remains relatively low. New York City’s economy has
outperformed the nation’s over the past two years and is expected to do so again in 2026.
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 Bess Freedman: The Big Bamboozle of Private Listing Networks
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"By now, many of you already know my stance on private listing networks. I have been incredibly vocal about their dubious nature, penned numerous opinion pieces, been threatened with lawsuits, and warned against them on television and in print. I’ve cited studies showing why PLNs hurt price discovery and explained how these networks only exacerbate the national trust crisis in which the real estate industry now finds itself."
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Rich With Cash, Manhattan’s Housing Market Ended 2025 on a Busy Note Despite Political Concerns
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Overall sales rose 5.4% in the fourth quarter, while trophy deals jumped more than 12%, according to a raft of market reports
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Introducing 200 West 88th Street - A Rare Robert A.M. Stern Boutique Offering |
This boutique collection of thirty-six grandly scaled 3-to-5 bedroom residences reinterprets the opulence of Beaux-Arts living for the modern era. Many homes offer private outdoor loggias and terraces, while a two-story Indiana limestone base and custom aubergine windows reflect the craftsmanship synonymous with RAMSA's legacy. A BHS Development Marketing Offering - Anticipated Occupancy in Early 2027. Contact me for more details! |
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10 NYC Neighborhoods to Watch in 2026
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With New York City’s housing market poised to move faster in 2026, these ten neighborhoods are shaping up to be the hottest.
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Building of the Week: The San Remo, 145 Central Park West
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The San Remo was designed by famous New York City apartment architect Emery Roth in 1929 and finished in 1930. It benefited from a law passed in the spring of 1929 that permitted high towers on plots greater than 30,000 square feet. It was the first of the four twin-tower buildings to define Central Park West’s distinctive skyline, followed by the Century at 62nd Street, the Majestic at 72nd Street, and the Eldorado at 90th Street.
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Six Forces That Will Shape Luxury Housing in 2026
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.Prime markets move into the new year shaped by selective buyers and booming wealth creation
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The Brown Harris Stevens Advantage |
It’s official. The Compass–Anywhere mega merger is complete, leaving Brown Harris Stevens as the largest privately owned real estate brokerage in New York City. |
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What Brown Harris Stevens Leaders and Agents See Ahead for New York Real Estate in 2026 |
As New York City heads into 2026, the housing market is settling into a familiar but evolving rhythm—competitive, selective, and increasingly shaped by buyers with significant financial flexibility.
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Affordability Is Not a Pricing Problem. It’s a Supply Problem, and Policy Keeps Missing the Root Cause.
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Affordability has become the dominant lens through which New Yorkers talk about housing. It shaped the most recent mayoral campaign, and it has been the stated objective of housing policy for decades.
Yet despite sustained attention and repeated interventions, the cost of living, particularly rents, has continued to rise.
That’s not because policymakers lack intent. It’s because, time and time again, policy has failed to address the root driver of cost: supply.
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NYC Fall Market in Review
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Manhattan delivered its strongest fall season since 2021—and its second-best in 11 years—with rising demand, stable inventory, and early signs of price firming.
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  | West Village, NYC 6 Bedroom | 6.5 Bath Asking $16,000,000 |
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Linden Lane 349 West 51st Street |
Hell's Kitchen , Manhattan
1 - 3 Bedrooms Estimated from $1,500,000 |
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 | Quogue, NY
6 Bedroom | 4.5 Bath Asking $5,600,000 |
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 | Tokeneke, Darien, Connecticut 7 Bedroom | 7 Full Bath, 3 Half Bath
Asking $9,350,000 |
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Montclair, New Jersey
6 Bedroom | 8 Full Bath, 2 Half Bath
Asking $6,500,000 |
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 | Palm Beach, Florida 6 Bedroom | 7.5 Bath
Asking $34,900,000 |
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 | Coral Gables, Florida
7 Bedroom | 7.5 Bath Asking $31,500,000 |
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 | Old Chatham, New York
4 Bedroom | 5 Full Bath, 2 Half Bath Asking $785,000 |
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If you are interested in one of these featured listings, or if you would like to learn more about existing opportunities in these areas, feel free to connect and I can assist you. |
| Licensed Associate Real Estate Broker 212-588-5688 973-454-6990 ddunbar@bhsusa.com |
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