Fall 2025 NYC Real Estate Update: Prices, Rentals & Borough-by-Borough Market Review

Photo by Diane Picchiottino on Unsplash

By Colin O'Leary

New York City’s real estate market remains strong as 2025 winds down. Across all five boroughs, prices and rents are high, demand is steady, and inventory is tight in popular neighborhoods. While higher mortgage rates have slowed some buyers, limited supply and NYC’s global appeal continue to keep the market competitive for buyers, sellers, and investors alike.

Manhattan remains the luxury leader. According to Douglas Elliman and Miller Samuel’s Q3 2025 report, the median sale price is around $1.225 million, with price per square foot rising due to new developments and high-end condos. Scarce inventory in neighborhoods like Tribeca, SoHo, and the Upper East Side keeps competition strong. Midtown and Downtown benefit from office-to-residential conversions and a recovering leasing market, helping sustain buyer interest. Demand for luxury condos and investment properties remains particularly high from both domestic and international buyers, while single-family townhouses and co-ops in core neighborhoods are selling quickly, often above asking price. The market also shows a steady rise in interest for amenity-rich buildings, such as those offering gyms, concierge services, and shared workspaces, which continue to influence buyer decisions.

Brooklyn shows impressive momentum. Corcoran reports a 16% year-over-year increase in median sale prices, with Williamsburg, Dumbo, and Downtown Brooklyn leading the growth. Brownstone neighborhoods like Park Slope, Carroll Gardens, and Fort Greene remain highly competitive. Buyers priced out of Manhattan are driving demand in walkable, transit-accessible neighborhoods, keeping absorption high despite higher mortgage rates. New development condos are seeing particularly strong interest, while resale properties in well-established neighborhoods are moving quickly due to limited inventory. Brooklyn’s rental market is also robust, with median rents increasing faster than most other boroughs, reflecting a strong influx of young professionals and families seeking lifestyle amenities, schools, and access to Manhattan.

Queens is growing steadily. PropertyShark reports a median sale price near $700,000, with Long Island City and Astoria performing strongly thanks to new condos and convenient Manhattan access. Eastern Queens neighborhoods like Flushing, Bayside, and Jamaica continue to attract first-time buyers and investors seeking long-term value. Queens is also benefiting from ongoing transit upgrades and infrastructure projects, which are improving commute times and enhancing neighborhood accessibility. Rental demand remains healthy, especially for newly built apartments and co-op conversions, while more affordable single-family homes in neighborhoods farther from Manhattan are drawing families and investors looking for steady appreciation.

The Bronx is emerging as a top investment borough. PropertyShark shows a median sale price of $362,000, slightly down year-over-year, but price per square foot rose 13% to $404. Investment sales jumped 106% in the first half of 2025, according to Ariel Property Advisors. Zoning changes and transit improvements, including the Metro-North Penn Station Access, are fueling growth, making the Bronx a strong choice for buyers and investors. Neighborhoods such as South Bronx, Mott Haven, and Fordham are seeing the most activity, with new development projects and mixed-use properties attracting both renters and long-term owners. The Bronx also continues to appeal to first-time buyers due to relative affordability compared to Manhattan and Brooklyn, while investors are targeting multi-family buildings and underdeveloped lots poised for redevelopment.

Staten Island continues steady growth. Redfin reports a median sale price of $730,000, up about 4.3% from last year, with price per square foot near $450. PropertyShark confirms gains of around 5%. A record $8.5 million sale in Todt Hill highlights the borough’s luxury market. Staten Island offers larger homes and a suburban feel while staying connected to the city, appealing to families and move-up buyers. Single-family homes with outdoor space remain in strong demand, and waterfront properties continue to draw high interest. Staten Island’s more stable market also makes it a good option for buyers seeking less competition while still enjoying access to the broader NYC area via ferries and highways.

Citywide, rentals remain competitive. Realtor.com reports median rents around $3,400 per month, up nearly 5% from last year, with Manhattan above $4,300 and Brooklyn and Queens around $3,300 and $3,000. Vacancy rates remain below 3%, keeping rental supply tight and fueling continued interest in homeownership. Luxury rentals in Manhattan and Brooklyn are particularly competitive, while outer-borough rentals, especially in the Bronx and Queens, are benefiting from families and professionals seeking more space at relatively lower costs.

New York City’s real estate fundamentals remain strong heading into 2026. Limited land, high demand, and ongoing infrastructure and development make the market resilient. Buyers will face competition for well-priced homes, sellers can expect strong interest for quality listings, and investors should explore emerging opportunities in the Bronx and Queens. From Manhattan’s luxury towers to Brooklyn’s brownstones and outer-borough growth, New York continues to offer one of the most rewarding real estate markets in the world.

If you’re in the market to buy, sell, or rent a home in NYC, contact our team leader Colin O’Leary at 646-300-2012 to schedule a free consultation.

(Sources: Douglas Elliman & Miller Samuel Q3 2025 Market Report; Corcoran Q3 2025 Brooklyn Market Report; PropertyShark NYC Residential Trends, September 2025; Ariel Property Advisors H1 2025 Bronx Report; Realtor.com Q3 2025 Rental Market Data; Redfin September 2025 Staten Island Report; New York Post, September 2025.)