5 Predictions for New York Real Estate in 2025

After nearly three years of market challenges, 2025 is poised to usher in a new era for New York City’s real estate market. With trends emerging from late 2024 and a resurgence in activity, this year is shaping up to be a turning point for both buyers and sellers. Here are five key predictions that will define the Manhattan real estate market in 2025.

Photo: Expedia


1. More Buyers in the Market

The fall of 2024 ended with the most robust activity since 2021, signaling a notable shift in buyer sentiment. Key indicators like the ratio of demand to supply and the rolling 30-day pace of signed contracts showed a sharp increase, finishing November 36% higher than last year and 33% higher than 2022. This momentum is expected to carry over into spring 2025, bringing more buyers back into the market.

With renewed confidence in the economy and increased liquidity, buyers who were previously sidelined are now ready to act, setting the stage for a more competitive market.

Liquidity (30-Day Pace Of Contracts Signed), 2022 to 2024UrbanDigs


2. Fewer Sellers, Tight Inventory

Despite the influx of buyers, the supply of new listings is unlikely to flood the market in 2025. Sellers remain cautious, holding off on listing unless demand significantly strengthens. While spring will naturally bring a seasonal uptick in inventory, it’s expected to remain within average levels, not exceeding typical seasonal norms.

This restrained supply, combined with strong buyer demand, could shift leverage toward sellers. Well-priced, renovated homes will become hot commodities, with shorter decision-making timelines for buyers eager to secure deals.

Monthly New Listings, 2022 to 2024 UrbanDigs


3. The Rise of Renovation Opportunities

The allure of move-in-ready homes dominated the market in recent years, but rising property prices and stabilizing renovation costs are bringing fixer-uppers back into focus. In 2025, buyers may turn to properties with potential, seeking to add value over time rather than paying steep premiums upfront.

With the renovation premium falling from its post-pandemic peak of 30% to a historical average of 14%, buyers are recalibrating priorities. For those willing to roll up their sleeves, homes with “good bones” may offer the best opportunity for long-term value.

Rolling 1-Year Price Per Square Foot, Renovated vs. Unrenovated UrbanDigs


4. High Rents Are Here to Stay

Even with the FARE Act, which shifts broker fees to the party hiring the broker, rents in NYC remain persistently high. The real issue—a lack of significant new rental supply—continues to push demand upward, especially in Manhattan.

As competition for rental units intensifies, expect near-record-high rents and ongoing bidding wars. For renters, the strategy in 2025 remains clear: start your search early, stay flexible, and act quickly.

Median Asking Rent, 2022 to 2024 UrbanDigs


5. Rising Prices and Stability

Manhattan is likely to see steady price growth in 2025, driven by stronger buyer activity and constrained inventory. Unlike the volatility of recent years, pricing trends this year are expected to reflect measured, predictable gains, signaling a healthier and more balanced market.

For sellers, this offers an opportunity to achieve reasonable pricing and efficient sales timelines, while buyers can proceed with confidence, knowing the market direction is stabilizing.

Quarterly Median Price Per Square Foot By Contract Signed Date UrbanDigs


2025: A Year of Renewal and Opportunity

After years of challenges, 2025 is shaping up as a year of revitalization for Manhattan’s real estate market. Buyer confidence, adaptability, and pent-up demand are driving a resurgence in activity, while tight inventory keeps the market competitive.

For buyers, this year brings opportunities to secure properties before prices climb further. For sellers, it’s a chance to capitalize on rising demand and a more balanced market. Despite high rents, the resilience of Manhattan real estate shines through, making 2025 a year of growth and renewed energy in New York City.

Claudia Saez-Fromm

An entrepreneur, innovator, and singularly successful real estate salesperson, fitness fiend, foodie, mommy, and fashion fan. www.claudiasaezfromm.com

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