May 2025

May Newsletter —

It's graduation season, which means summer is just around the corner. In this month's newsletter, we take a look at the state of the market, learn about local laws and transportation proposals, and more.

Sales Market Update

For the first time in history, the United States has been marked as below top tier by the three major credit agencies when compared to other similarly rated nations. However, even as Moody's joined S&P and Fitch in downgrading the United States' credit rating from "Aaa" to "Aa1", they moved the economic outlook from "negative" to "stable". Meanwhile, the Federal Reserve seems unlikely to make interest rate cuts any time soon, and tariff extension deadlines loom on the horizon. While this past winter may have been unseasonably active for New York City real estate, now that the spring peak has passed, the current economic and political uncertainty is making the future difficult to predict.

In April 2025, the number of contracts signed in Manhattan decreased year-over-year by 6.6%. The drop in activity is due entirely to the co-op market, which saw a marked decrease of 21.3% year-over-year. Co-ops were also the only section of the Manhattan market to experience a decline in inventory, which dropped 9.3% compared to April 2024. In contrast, condo contract activity increased 11.3% year-over-year with a 5.7% rise in inventory. The number of contracts signed between April 2024 and April 2025 didn't experience any change in the townhouse market, even as inventory rose and prices dropped.

Brooklyn's market fared similarly in April 2025, with contracts signed down 16.2% year-over-year and inventory down 5.1%. Contracts signed on Brooklyn co-ops decreased substantially year-over-year, dropping 48.6%, and inventory was also down annually, by 30.8%. The month-over-month numbers are less alarming, with contracts signed only down by 5.3% and inventory up by 3.2%. As with Manhattan, houses in Brooklyn are relatively on track year-over-year, though the prices and days on the market are up. As for condos, despite an annual inventory increase of 15.8%, signed contracts decreased 5.1% year-over-year.

Let's take a closer look at the statistics from Manhattan and Brooklyn.

+10.2%

Month-Over-Month

+12.6%

Year-Over-Year

-7.2%

Month-Over-Month

-6.6%

Year-Over-Year

Average Days on Market

+1.8%

Month-Over-Month

+5.2%

Year-Over-Year

Inventory

+3.5%

Month-Over-Month

-1.1%

Year-Over-Year

Source: Compass April 2025 Manhattan Market Report

-2.4%

Month-Over-Month

-2.3%

Year-Over-Year

Contracts Signed

-4.7%

Month-Over-Month

-16.2%

Year-Over-Year

Average Days on Market

-1.4%

Month-Over-Month

+4.3%

Year-Over-Year

Inventory

+3.1%

Month-Over-Month

-5.1%

Year-Over-Year

Source: Compass April 2025 Brooklyn Market Report

Rental Market Update

April 2025 was a continuation of the NYC rental trajectory we've seen for the last few years now—record high rents, record low inventory, and frequent bidding wars. With the Rent Guidelines Board on track to approve a fourth consecutive year of rent increases, the rental market is unlikely to reverse course any time soon. Vacancy rates are low, especially for affordable housing, and the city's tenants are increasingly rent-burdened and struggling to find a suitable place to call home.

Manhattan's median rent for April 2025 was $4,500, a 5.9% increase year-over-year, and another new record. About a quarter of those renters engaged in bidding wars, paying an average of 11.8% above asking to secure an apartment. Even with record-high rents, lease activity remained elevated, with 4% more leases signed than in April 2024.

Brooklyn's median rent stayed relatively unchanged year-over-year, hovering around $3,600. The price per square foot, however, increased 6.6% to a near-record $59.44. Rental interest in Brooklyn is as hot as ever, with lease signings up 7.8% year-over-year. Fortunately, inventory is keeping pace for now, with listings up 46.3% annually.

Read the Compass April 2025 Rental Report here.

In the News

• Part of the tax bill passed by the House on May 22nd included an increase to the federal deduction cap for state and local tax, or SALT. If passed, the provision would bring the SALT cap up to $40,000 rather than the current $10,000, and phase out over $500,000. You can read more about it here.

• City transportation officials are saying "enough" to traffic on 34th Street in Manhattan, where the M34 bus route currently averages a speed of just 3 mph during peak periods. The bus route provides transportation to approximately 28,000 riders each day. They're proposing new restrictions between Third and Ninth Avenues, which would only be used by buses and trucks. A similar change was made to 14th Street in 2019, leading to a 24% increase in travel speed.

• The iconic South Street Seaport has long been at the nexus of development and preservation, with an impressive list of previous landlords who have tried and failed to turn a profit without gutting the neighborhood's personality. This article from Curbed details what South Street is, what it means, and what its new corporate owners want to accomplish.

• The mayoral primaries are coming up! Early voting starts June 14th with the actual voting date set for June 24th. If you're not quite sure who you're voting for or what to do with your ranked choice options, check out this informative quiz The City created to help you choose.

City Spotlight: Van Gogh's Flowers at NYBG

You may be familiar with the New York Botanic Garden's orchids, but what about their sunflowers? At their brand new exhibit, Van Gogh's Flowers, you can take part in curated experiences based on the painter's iconic artworks. Wander through a lawn of monumental sunflowers and marvel at recreations of his paintings in living flowers. Then, on select evenings, catch Starry Nights, an NYC first-of-its-kind drone light show. Plus, enjoy live music, performance art, cocktails, and snacks!

The exhibit runs from May 24th to October 26, from 10 AM to 6 PM at the Garden. Click here for more information.

Just Closed

Upper East Side

1165 5th Avenue, Unit 2/3D

4 BD 3 BA 2,200 SF $2,250,000

Rarely available and on the market for the first time in over 40 years, this unique, house-like apartment is filled with natural light thanks to direct southern and eastern exposures.

Clinton Hill

110 Clifton Place, Unit 2A

1 BD 1 BA $4,350

Rented above ask!

At approximately 850 SF, this fully renovated prewar loft combines charm and modern convenience, featuring high-beamed ceilings, hardwood floors, and abundant natural light with treetop views from southern and northern exposures.

In Contract

Upper East Side

131 East 81st Street, Unit PH15

2 BD 2 BA 1075 SF $1,495,000

Welcome to PH15, a private full-floor, corner-unit penthouse in the heart of the Upper East Side with excellent light, 2 balconies, private elevator entry, in-unit w/d, custom built-in closets, custom Chef kitchen, built-in closets by LEICHT, 1.5 baths, (primary ensuite bath has heated floors), and 2 skylights.

Upper WeST SIDE

7 West 92nd Street, Unit 76

2 BD 1 BA $899,000

This top floor, fully renovated two-bedroom home is ideally located just steps from Central Park. With 9’ ceilings, an in-unit washer/dryer, three exposures with windows in every room, and charming details like exposed brick and a decorative fireplace, this home is not to be missed.

Just Listed

MURRAY HILL

305 East 40th Street, Unit 5K

2 BD 2 BA $5,800

Bright and airy with southern and eastern exposures, this fully renovated home features an in-unit washer/dryer, abundant closet space, and solid oak floors throughout. With a low maintenance fee and no flip tax, it offers both comfort and value.

Coming Soon

Upper East Side

Convertible 3-Bedroom with

East River Views

This bright, 1,650 SF home features an enclosed terrace and sweeping East River views from both bedrooms and the expansive living room. Currently configured as a two-bedroom with two full baths and a dining room, it offers abundant closet space and flexible layout options—all in a full-service building on a quiet cul-de-sac block.

Upper east side

Pre-War One-Bedroom

This charming prewar one-bedroom is quiet, with windows in every room and access to a range of building amenities, including a common courtyard, laundry facilities, bike storage, and a children’s playroom. Situated on 88th Street and Second Avenue, this residence offers convenient access to the 4/5/6 and Q trains, as well as the 86th Street crosstown bus.

NoMad

Fully Renovated

2-Bedroom

This luxurious east-facing split two-bedroom, two-and-a-half-bathroom home features oversized windows with open views, ceilings over 10 feet high, an in-unit washer/dryer, a separate office area, and central AC, all a building with more than 10,000 square feet of amenities.

Most Recent Mortgage Rates

Rates are from Citibank and are effective as of 5/28/2025. Rates are subject to change without notice.

Everyone’s mortgage needs are different. I have great relationships with mortgage brokers and loan officers from big banks and small banks who can help find the best loan for you. If you're looking for a lender you can trust, I'd love to help. Email me for more.

Rebecca's Resources

I'm an expert at successfully repositioning and selling homes that were previously listed without success. Click here for examples of how I have transformed listings to showcase a property's full potential, securing favorable deals where other agents could not.

Find out how Compass Concierge can help you prepare your home before coming to market by fronting the costs of upgrading, renovating, and staging at no interest.

I'm born and raised in New York City. If you've got a question, I've got you covered. For recommendations on anything, from the best tourist attractions to the hidden gems of NYC's parks, it's as simple as sending me an email.

Licensed Associate Real Estate Broker

M: 917.952.0414

rebecca.orbach@compass.com