New York City’s homebuyers and renters faced record high housing costs in 2024, prompting complaints. In the latter half of last year, mortgage rates decreased and the City Council passed the “Fairness in Apartment Rentals Act” (FARE Act) in November. In December, Mayor Adams’ “City of Yes” housing plan was voted through, bringing some optimism to the real estate market. Real estate website StreetEasy released a forecast for 2025 on December 11, indicating affordability will be the driving force behind the housing sales and rental market.
Due to the high prices and scarcity of affordable housing, despite the complex approval process for cooperative apartments (Co-op), they are now 26% cheaper compared to condominiums, attracting interest from buyers once again.
There are fewer cooperative apartments for sale compared to condos. The number of new listings for cooperative apartments in 2024 decreased by 4.5% from the previous year, while the number of new condo listings increased by 7.3% during the same period, making it more advantageous for owners looking to sell cooperative apartments in 2025.
According to data from real estate trading website Zillow, as of October 2024, there were a total of 29,948 homes listed for sale across the five boroughs of New York City, marking a 16.8% increase from the same period last year. On average, it took nine and a half weeks for a listing to sell. In comparison, in the suburban areas of six counties—Nassau, Westchester, Rockland in New York, Bergen and Hudson in New Jersey, and Fairfield in Connecticut—the number of new listings only increased by 1.4% compared to the previous year, selling within 2 to 5 weeks. Therefore, urban homes provide buyers with more choices and a more advantageous negotiation position compared to suburban homes.
In recent years, the exorbitant prices of luxury homes have led to a slowdown in sales. The minimum threshold price for the top 10% of luxury homes in the city has decreased by 6.1% as of November 2024 from the peak of $4.95 million in December 2023. With interest rates expected to drop in 2025 and projected corporate bonuses showing a potential first-time increase in three years, potential luxury home buyers will be more willing to make a move.
Many new housing projects are located in Brooklyn and Queens, with the inventory of rental units in these two boroughs catching up to Manhattan in 2024 and expected to surpass it in 2025, becoming the largest rental market in New York City. Jersey City and Hoboken in New Jersey, traditionally considered rental alternatives outside the five boroughs, have seen rent prices steadily rise. In 2024, the average monthly rent in Jersey City and Hoboken was $3,160, while in Brooklyn, it was $3,424. In 2025, the rental prices in these two areas are projected to exceed Brooklyn, becoming the most expensive rental markets outside Manhattan.
With remote work becoming more common, renters and buyers increasingly desire apartment buildings with convenient amenities, eliminating the need to leave the building. Over the past year, searches for apartment buildings with outdoor spaces increased by 116.6%, while searches for swimming pools and gyms rose by 61.8% and 11.2%, respectively. Many New Yorkers are willing to spend more money for the convenience of amenities in apartment buildings, making their home lives more comfortable and convenient.