Manhattan's real estate market in 2025 is experiencing a mix of stability and renewed growth, with both residential and commercial sectors showing notable trends.
Residential Market Trends
- Stable Home Prices: The median home sold price in Manhattan remains around $1.36 million, with minor fluctuations compared to the previous year. The median price per square foot stands at approximately $1,386.
- Co-op Popularity: Cooperative apartments (co-ops) continue to attract buyers due to their affordability compared to condominiums. This trend is expected to persist throughout the year.
- Suburban Shift Reversal: Higher suburban housing costs are driving buyers back into Manhattan, increasing demand for urban properties.
- Office-to-Residential Conversions: New York City is seeing a rise in office-to-residential conversions, encouraged by tax incentives and zoning adjustments. Major office buildings are being repurposed into housing to meet urban demand.
- Renewed Investment Activity: Large real estate investment firms are making moves in Manhattan's office sector, signaling confidence in the city's long-term commercial real estate outlook.
- Luxury Segment Rebound: The high-end real estate market, which slowed in 2024, is expected to recover due to strong investment activity and a post-election boost in buyer confidence. Limited new construction inventory could impact availability.
- Interest Rate Stability: Mortgage rates are projected to remain within the 6% range for most of 2025, with occasional increases beyond 7%, influencing buying and selling behaviors.