In the fourth quarter of 2025, Manhattan’s real estate market recorded significant growth, with sales rising to higher levels since 2022. The demand was strong, especially after the presidential elections, and supported by a third consecutive year of double-digit returns in the stock market. The economy of New York has performed well in the first three quarters of 2025, with the occupation that reached a record level of 4,261 million in August. In the last two years, the economy of the city has exceeded the national one, and it is expected that it continues on this road also in 2026.
One of the most positive news of 2025 was the rapid drop in interest rates on mortgages in the second half of the year. The mortgage rates at 30 years are now around 6.2% and are expected to fall further in 2026. Although there are concerns about the health of the labour market in the United States, unemployment has remained low to date. The Federal Government’s historical shutdown record also helped to feed these fears, as employment and inflation data, on which markets and Fed are based, were not published.
Concerns for a slowdown in the economy, along with uncertainty related to the New York municipal elections, led to a slowdown in sales in the fourth quarter of 2025, with a 9% decline compared to the fourth quarter of 2024. The prices remained substantially unchanged in the last year, with the average price of a resale apartment of 1.768.953 dollars. Unlike many other markets, Manhattan has maintained a good level of apartments for sale, which prevented prices from rising too quickly. With the continuous drop in rates, we expect a very active Manhattan market in 2026.
Anche Brooklyn in crescita
In the fourth quarter of 2025, the real estate market in Brooklyn closed with a positive note, with sales and higher prices than the same period of the previous year. The average price of the apartments, of 1.081.581 dollars, has increased of 4% regarding the fourth trimester of 2024, while the average price has risen of 2%, reaching 800.000 dollars. Transactions increased by 6% compared to a year ago, demonstrating a still strong demand.
Looking at the entire 2025, Brooklyn recorded average prices of apartments at higher levels than ever. With an average of less than 1.1 million dollars, the average price increased by 6% compared to 2024.
Although not a record, the number of houses sold has risen to the highest level since 2022.
Article For Manhattan’s real estate market, 2025 was better closed than expected from IlNewyorkese.
