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From July 2024 to July 2025, 1 in 3 condos offered in Manhattan offered at a loss, based on luxurious actual property agency Brown Harris Stevens. Consultants say this dynamic is considerably typical in a metropolis with excessive promoting charges and excessive tax charges.
What’s uncommon is the borough’s wavering property values over the previous decade. In November 2015, 1 sq. foot of area in Manhattan value $1,562; by fall 2025, costs had fallen to $1,108 per sq. foot, based on Redfin knowledge.
Manhattan apartment and co-op values took a big swing down amid the Fed’s tightening of the U.S. financial system from 2022 to 2024. A dearth of international patrons additional dampened demand. Consultants level to shifts in international trade charges between the U.S. greenback and currencies such because the euro.
“I believe there’s in all probability extra upside over the following 10 years than the final 10 years,” stated Jonathan Miller, CEO and founding father of Miller Samuel, an actual property appraisal and consulting agency.
Consultants say many first-time patrons are shut out of this high-end market. “I am seeing extra individuals of their early 30s, and so they’re getting just a little little bit of assist from their dad and mom,” stated Bess Freedman, CEO of Brown Harris Stevens. “They’re New Yorkers who’re going from uptown to downtown, empty nesters, … youthful households, … not a lot worldwide,” she stated in an interview with CNBC’s Robert Frank.
“That is really why rents went up a lot, as a result of individuals could not afford to purchase,” stated Pierre Debbas, an actual property lawyer within the New York metro area.
The median hire in Manhattan at present is $4,973, based on rental web site Zumper, a ten% improve from the yr prior. A purchaser buying the median apartment in Manhattan — which sells for $1,650,000, based on knowledge from Miller Samuel — with a 20% down fee and a 6.25% mortgage may face month-to-month principal and curiosity funds north of $8,000.
Consequently, even rich New Yorkers are selecting to hire.
New York Metropolis Mayor-elect Zohran Mamdani campaigned on affordability points, gaining nationwide consideration.
His platform referred to as for larger taxes on the wealthy and a hire freeze for about 1 million rent-stabilized models all through town. Consultants say this might elevate the rents on an estimated 1.2 million market-rate models within the coming years.
“What that is going to trigger landlords to do is to push bills on the buildings they management which have extra open-market models,” stated Miller.
Watch the video above to see how Manhattan’s actual property market is shifting.
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