September 06, 2025
The New York City housing market is holding steady in 2025, with more buyers re-entering the market, steady price growth in most boroughs, and a competitive rental scene. While the national market is slowing, NYC is showing resilience — and that’s worth paying attention to if you’re thinking about buying, selling, or renting in the next year.
Sales Activity is Heating Up
May 2025 marked the ninth straight month of growth in new contract signings — up 5.8% year-over-year. This surge is fueled by pent-up demand, slightly lower mortgage rates, and buyers who are ready to stop waiting and start moving. Unlike the national market, which saw a small dip in sales, NYC is bucking the trend with strong momentum.
Prices Are Climbing — But It’s Hyperlocal
The median asking price citywide hit $1.1M in May 2025, up 2.3% year-over-year. Manhattan remains the priciest at $1.495M, Brooklyn sits at $1.1M (up 3.9%), and Queens saw the biggest jump at 10.6%, reaching $695K. Inventory is also growing — up over 11% citywide — giving buyers more options, but competition for the best listings is still fierce.
Mortgage Rates & Buyer Strategy
With 30-year fixed rates hovering around 6.67% and expected to settle between 6.0%–6.5% by year-end, we’re seeing more buyer confidence. Sellers should know that strategic pricing is key; buyers should be prepared to act quickly and make strong offers on high-demand properties.
Rental Market: A Tale of Two Boroughs
Citywide median rent is $3,900 — up 2.7% year-over-year. Manhattan rents are climbing fast, with fewer listings and a median of $4,595. Brooklyn and Queens, however, are seeing slower rent growth and more inventory, giving renters in those boroughs a little more breathing room and negotiating power.
Notably, Gowanus, Brooklyn leads the city in rental inventory growth with a massive 226% increase — a sign that new rental opportunities are expanding outside Manhattan’s core.
Looking Ahead: 2025–2026 Forecast
Zillow projects a slight cooling in NYC home values over the next year — down about 1.2% by May 2026 — while most upstate New York markets are expected to grow. This isn’t a crash; it’s more of a soft landing, creating opportunities for buyers to enter without the frenzied bidding wars of recent years.
Nationally, the outlook is positive: home sales and prices are expected to rise modestly, and mortgage rates should edge down in 2026. For NYC, that means stable pricing, more inventory, and a healthier balance between buyers and sellers.
For buyers, the window is opening — more inventory, stable rates, and less cutthroat competition than during the pandemic boom. For sellers, pricing competitively and presenting your home well will still get you top dollar. For renters, Brooklyn and Queens are where the most opportunities are right now.
The NYC market in 2025 is active, competitive, and nuanced — and having the right guidance can make all the difference in securing your next move.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
