Manhattan Residential Real Estate: Q4 2025 Market Report
Manhattan's residential real estate market closed out 2025 on a strong note, recording 2,611 sales in the fourth quarter, an 8.6% year-over-year increase that meaningfully outpaced both 2024 and 2023. Despite a brief mid-year pause driven by local elections and shifting federal economic conditions, buyers and sellers returned with confidence in the latter months of the year, validating the market's underlying resilience.
Condos and Co-ops Both Drove Q4 Growth
Both property types contributed equally to quarterly momentum. Condo closings rose 8.4% while co-op closings climbed 8.7%, reflecting broad-based demand across Manhattan. Pricing told an equally compelling story: condos reached a record average price of $3.03 million in Q4 2025, while co-ops posted their second-highest fourth-quarter pricing on record. After softness in the spring, the market's late-year resurgence exceeded expectations, underscoring just how robust demand remained as 2025 came to a close.
Location Was Everything: Neighborhood-by-Neighborhood Breakdown
Geography played a defining role in shaping buyer behavior this quarter. Downtown Manhattan, encompassing SoHo, Tribeca, Chinatown, and Little Italy, saw the sharpest divergence of any submarket: condo sales dropped more than 15%, while co-op closings surged nearly 23%. Meanwhile, value-focused condo buyers gravitated toward Lower Manhattan, particularly the Financial District and Battery Park City, where sales jumped an impressive 77.3% year-over-year. Midtown East also emerged as a standout, capturing the third-largest condo market share in the borough and achieving its highest median price in a decade, a reflection of its central location and competitive price point.
Ultra-Luxury and the $3M to $5M Sweet Spot
The ultra-luxury segment proved its staying power. Condos priced above $20 million saw a 12.5% increase in contract activity, as high-net-worth buyers continued adding trophy properties to their portfolios at price points that still represent relative opportunity. Across both property types, the $3 million to $5 million range emerged as the market's clear sweet spot, posting double-digit contract growth and demonstrating that cash-rich buyers at the top of the market remain largely insulated from broader economic headwinds.
Inventory Trends: Condo Supply Up, Co-op Inventory Tightens
Active inventory held steady at just under 5,400 listings overall, but the picture varied significantly by property type. Condo inventory rose 6.3%, giving buyers greater leverage and contributing to a slight dip in price per square foot. Co-op availability, by contrast, tightened by 6.8%, sustaining competitive conditions for that segment. New listings fell 4.1% overall, signaling that sellers, particularly those with well-priced properties, continue to approach the market with caution.
What to Expect in 2026
Manhattan's residential market is well-positioned heading into 2026. High-demand properties show no signs of slowing, and competition remains active on both the buy and sell sides. As supply continues to challenge buyers, sellers, especially co-op owners, will be increasingly encouraged to align with market expectations, whether through strategic pricing or targeted renovations. Manhattan's fundamentals remain intact, and the market is broadly anticipated to build on its strong Q4 2025 finish in the year ahead.