May 16, 2025
When Trump’s sudden “Liberation Day” tariffs dropped, it looked like chaos was about to hit the housing market—especially at the high end.
Stock markets dipped, showings were canceled, buyers froze up, and sellers pulled listings out of fear. In Manhattan’s luxury market, 18 fewer contracts were signed in one week than the week before.
For a brief moment, it felt like the long-awaited “normal market” was about to get derailed.
But New York City real estate doesn’t flinch that easily.
Just a few weeks later, the panic turned out to be more bark than bite. Contract signings in both Manhattan and Brooklyn actually went up compared to last year.
April saw 1,015 signed contracts in Manhattan, up from 761 in the same month last year. Brooklyn followed suit with 526 contracts, compared to 412 last year. Inventory increased too—proof that sellers weren’t running scared for long.
This resilience is pretty unique to NYC, though. In nearby Long Island, the reaction was much different. There, homes make up a larger portion of people’s net worth, and sellers were far more hesitant.
Inventory dropped dramatically—1,379 active listings this April, compared to over 2,300 the year before. The suburbs just don’t have the same insulation as the city.
Other big cities like Los Angeles and Miami also showed signs of weakness. L.A. is still recovering from wildfires earlier in the year, and both listings and contract signings are down. In Miami, inventory is up but contract signings fell—a sign that confidence isn’t quite there, even with all the shiny new condo buildings going up.
So why is New York weathering the storm?
In one word: money. NYC buyers are typically cash-heavy, and many aren’t relying on mortgage financing. Even if they’re pulling that cash from the stock market (which did take a hit), most rebounded quickly when the tariffs were dialed back.
And unlike other parts of the country, NYC was primed for a rebound after several sluggish years. Buyers were already circling, just waiting for a reason to pounce.
But let’s be real—this doesn’t mean NYC is bulletproof. Tariffs, like interest rates, can shift overnight.
The bigger issue here might not be the actual economic impact but the uncertainty they create. That kind of unpredictability can erode long-term trust—especially among international buyers.
Still, for now? NYC isn’t skipping a beat.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
