Q2 2025 Manhattan & Brooklyn Market Update!
The New York City real estate market kicked off 2025 with remarkable resilience. Despite macroeconomic uncertainty and low housing inventory, both Manhattan luxury real estate and Brooklyn luxury homes saw strong activity, signaling that demand remains robust in the nation’s most competitive housing market.
Manhattan Luxury Real Estate: Ultra-High-End Sales Surge
The Manhattan luxury housing market continued to shine in early 2025, especially in the ultra-luxury segment. Sales of properties priced at $10 million and above surged nearly 70% year-over-year, driven by cash-ready buyers and long-term investors seeking stable, blue-chip real estate assets.
This surge underscores Manhattan’s continued status as one of the most desirable luxury property markets in the world, attracting both domestic and international buyers.
Brooklyn Luxury Homes: Double-Digit Growth Across Price Segments
Across the East River, Brooklyn’s luxury real estate market also delivered impressive gains. Sales in the $2–$3 million range increased by 36%, while the $3 million-plus category rose 34% year-over-year. This growth reflects the borough’s rising appeal among affluent buyers looking for space, style, and vibrant neighborhoods outside Manhattan’s core.
Interest Rates No Longer Holding Back NYC Buyers
While higher mortgage rates initially caused some hesitation, 2025 has seen more buyers re-enter the market. Many are adapting to the “new normal” for interest rates, motivated to escape NYC’s competitive rental market, where prices have jumped over 15% since the Fare Act took effect in June 2025.
Mayoral Race and Real Estate Market Sentiment
New York City’s 2025 mayoral election is a growing factor in buyer and investor conversations. Potential policy changes could influence NYC housing market trends and real estate investment strategies. Although it’s too soon to measure the impact, industry experts are closely monitoring developments.
Resilience is the NYC Real Estate Market’s Signature
If history is any guide, NYC’s property market has a proven ability to weather uncertainty. From economic shifts to political changes, the city’s housing market consistently rebounds, reinforcing its reputation as one of the world’s most resilient and sought-after real estate hubs.
Written by. Marianna Dimentman | (E) mariannad@compass.com , (M) 917.853.3262
