From July 2024 to July 2025, one in three condominiums sold in Manhattan was sold at a loss, according to luxury real estate firm Brown Harris Stevens. Experts say the move is somewhat typical in cities with high sales commissions and tax rates.
What is unusual is that real estate values in the ward have fluctuated over the past 10 years. In November 2015, the price for one square foot of space in Manhattan was $1,562. By fall 2025, prices had fallen to $1,108 per square foot, according to Redfin data.
Prices for condos and co-ops in Manhattan have fallen sharply as the Federal Reserve tightens the U.S. economy from 2022 to 2024. A lack of foreign buyers further slowed demand. Experts point to changes in exchange rates between the US dollar and currencies such as the euro.
“I think there’s probably more upside in the next 10 years than in the last 10 years,” said Jonathan Miller, founder and CEO of real estate appraisal and consulting firm Miller Samuel.
Experts say many first-time buyers are being shut out of this luxury market. “We’re seeing more people in their early 30s, and they’re getting a little help from their parents,” said Beth Friedman, CEO of Brown Harris Stevens. “They’re New Yorkers going from uptown to downtown, empty nesters, … young families, … not so cosmopolitan,” she said in an interview with CNBC’s Robert Frank.
“The real reason rents have gone up so much is because people can’t afford them,” said Pierre Debas, a real estate lawyer in the New York metropolitan area.
The median rent in Manhattan is currently $4,973, up 10% from a year ago, according to rental site Zumper. According to data from Miller Samuel, a buyer who buys a median-priced Manhattan condo (selling for $1.65 million) with a 20% down payment and a 6.25% mortgage could face monthly principal and interest payments of more than $8,000.
As a result, even wealthy New Yorkers are choosing to rent.
New York City’s next mayor, Zoran Mamdani, has garnered national attention by campaigning on affordability issues.
His platform called for higher taxes on the wealthy and a rent freeze for about 1 million rent-stabilized units across the city. Experts say this could increase rents for an estimated 1.2 million market-rate homes over the next few years.
“This will force landlords to shift costs to owner-managed buildings that have more open market units,” Miller said.
Watch the video above to see how the Manhattan real estate market is changing.
