Happy New Year!
As we move into 2026, the New York City housing market has normalized to an elevated mortgage-rate environment. Prices across much of Manhattan and Brooklyn have been rising steadily for more than two years, and there are no clear macro factors on the horizon that would materially alter the near-term trajectory.
The post-rate adjustment is complete. The market absorbed higher borrowing costs without widespread price erosion, and waiting for a broad market selloff has, to date, resulted in higher prices with no corresponding improvement in affordability.
Looking ahead, a sustained decline in mortgage rates would likely intensify competition and upward price pressure, particularly in supply-constrained segments. Outcomes will continue to vary meaningfully by neighborhood, property type, condition, and pricing strategy.
