New York City’s housing market carried solid momentum into the summer, with signed contracts rising nearly 19% year over year and new listings also increasing. However, the strength has not been uniform across all price points. Luxury activity continues to lead the market, while rising mortgage rates are beginning to slow demand below $1 million and create a more selective environment across much of the market under $2 million.
Inventory levels also require a closer look. Just 15% of available listings have been on the market for fewer than 30 days, while 54% have been listed for 90 days or longer. This means the pool of fresh, compelling options is relatively limited. For sellers, a well-priced and well-presented new listing can stand out immediately against a backdrop of aging inventory. For buyers, properties that have been available for more than 90 days may offer the greatest pricing flexibility and negotiating leverage.
As we move into August, the market is expected to enter its typical seasonal lull. The final weeks of summer are historically among the quietest of the year, as many buyers and sellers pause for vacations before activity picks up again after Labor Day. While transaction volume may soften in the coming weeks, properly priced and differentiated properties should continue to attract attention, while listings that are overpriced or poorly positioned may struggle—particularly in the rate-sensitive segments of the market.
Pied-à-Terre Tax: New York City has begun mailing Pied-à-Terre surcharge notices to many owners of high-value residences, often before confirming whether the property is actually a primary or secondary residence. As a result, some homeowners have received notices in error, including owners of properties that may fall below the applicable value threshold. If you receive one of these notices, it is important to respond promptly to avoid the possibility of a significant surcharge and to consult your attorney or accountant. The burden is on the homeowner to prove that the property is not subject to the tax, which can be particularly challenging for co-op owners and landlords. Co-op ownership is based on shares rather than a deeded unit, adding complexity to the valuation process. Landlords also need to obtain documentation from tenants to demonstrate that the property is being used as a primary residence.
Rental Market: New York City's rental market remained exceptionally competitive in June, with the citywide median asking rent climbing 5.0% year over year to a record $4,200—the highest level recorded by StreetEasy since it began tracking the data in 2010. Tight inventory continues to support elevated rents across much of the city, although conditions vary by borough. Brooklyn was the only borough to post a meaningful increase in available rental inventory, while Queens' wave of new development has led many landlords to offer concessions, with 17% of rental listings including at least one month of free rent—more than both Manhattan and Brooklyn. Overall, demand remains strong, but pockets of new supply are creating opportunities for renters in select neighborhoods.
Luxury Market: Last week saw 21 luxury contracts signed (13 condos, 5 co-ops, 3 townhouses)—outpacing the same week in 2025 (9), 2024 (14), 2023 (13), and 2022 (13), and trailing only the record-setting 2021 mark (36).
Check out our video post here on the unwritten rules of buying on Park and 5th Avenue.
As always, please reach out with any questions.
