01/06/2026
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.
https://bhs-content.ion3.io/2026/01/Manhattan_4Q25_MR.pdf
