June 2025

June Newsletter —

With the longest days of the year upon us, New York is in full summer swing. In this month's newsletter, we take a look at the state of the market, explore changes to broker fee laws, examine neighborhood voting trends, and more.

Sales Market Update

Ongoing political and economic volatility dampened the usual momentum of the spring real estate market, which is typically the most active of the year. Uncertainty around the economy and its personal implications made many buyers and sellers more hesitant to move forward with what is often one of the most significant financial decisions of their lives.

That economic uncertainty surged in April, reducing the number of listings going into contract and, subsequently, closed sales in May. The uncertainty index fell sharply in May and is expected to decline even further in the next reading. Nearly all of May’s closed sales were negotiated before the May 12 reversal of China-tariff policies, which triggered a substantial recovery in the stock market and a meaningful rebound in consumer confidence (although confidence still remains very low by historical standards).

Despite this cautious backdrop, the year-over-year numbers show resilience. Compared to one year ago, median sales prices in both Manhattan and Brooklyn are up by 5.6% and 12.4%, respectively, and average sales prices have increased by 7.6% in Manhattan and 12.5% in Brooklyn. Even as contract activity softened in May, inventory rose modestly from April, up 3.5% in Manhattan and 2.6% in Brooklyn, signaling a more balanced market than we saw at this time last year.

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

-2.2%

Month-Over-Month

+5.6%

Year-Over-Year

-8.9%

Month-Over-Month

-11%

Year-Over-Year

Average Days on Market

+1.3%

Month-Over-Month

+15.2%

Year-Over-Year

Inventory

+3.5%

Month-Over-Month

-5.4%

Year-Over-Year

Source: Compass May 2025 Manhattan Market Report

+9.3%

Month-Over-Month

+12.4%

Year-Over-Year

Contracts Signed

+5.7%

Month-Over-Month

-13.2%

Year-Over-Year

Average Days on Market

-7.6%

Month-Over-Month

+0.8%

Year-Over-Year

Inventory

+2.6%

Month-Over-Month

-4.2%

Year-Over-Year

Source: Compass May 2025 Brooklyn Market Report

Rental Market Update

Rents continued their upward climb in May, with Manhattan’s median rent reaching a record $4,571, marking the third time in four months that a new high was set. Brooklyn also posted a record rent per square foot at $60.77, driven by sustained demand and tight inventory. While lease signings dipped slightly year-over-year, inventory in Manhattan rose to its highest level since 2021, giving renters a bit more selection even as prices continued to rise. With peak rental season just beginning and the FARE Act now in effect, further price increases are likely on the horizon.

Adding to the shift, more wealthy New Yorkers are opting to rent rather than buy. A recent study found that the number of NYC households earning more than $1 million and choosing to rent has nearly tripled since 2019, rising to more than 5,600. High mortgage rates, limited sales inventory, and a desire for flexibility are driving this trend, yet another sign that renting, at every price point, remains highly competitive in New York City.

Read the Compass May 2025 Rental Report here.

In the News

• The FARE Act, which went into effect June 11, requires landlords, not tenants, to pay broker fees when they are the ones who hire a broker. Just one week after the law took effect, a new analysis found that average NYC rents surged by 15%, rising from $4,750 to $5,500. Industry experts say many landlords are now incorporating broker fees into the rent itself. Meanwhile, nearly 2,000 listings disappeared from StreetEasy overnight, and renters are reporting confusion, “shadow listings,” and inconsistent pricing as the market adjusts to the law. 

• Want to see how your neighborhood voted? This interactive map from The City shows which mayoral candidates received the most first-round votes in every election district across NYC.

• Over the past decade, 24 NYC neighborhoods have seen median sale prices at least double, driven by factors like rezoning, remote work, climate resilience investments, and gentrification. The steepest increase occurred in Two Bridges, where prices surged 288%, while areas like Red Hook and Carroll Gardens also saw dramatic gains. The report also explores signs of early-stage gentrification in neighborhoods like Clifton, Wingate, and Parkchester. Read the full breakdown, including an interactive map, here.

• The Federal Reserve held interest rates steady this month, maintaining its benchmark rate at 4.25% to 4.50%, but signaled two potential rate cuts by the end of 2025. Fed Chair Jerome Powell warned that planned import tariffs could drive “meaningful” inflation in the months ahead, prompting caution around the timing of any policy shifts. While inflation has recently cooled, the Fed expects it to tick back up to 3% by year’s end, with slower economic growth and rising unemployment also on the horizon. Read more on the Fed’s outlook and what it means for the economy here.

City Spotlight: Hilma af Klint: What Stands Behind Flowers

This month, the Museum of Modern Art invites visitors to slow down and look more closely with its new exhibition, Hilma af Klint: What Stands Behind the Flowers. Known for her mystical abstractions, af Klint shifts focus here to the natural world, presenting 46 never-before-seen botanical drawings that explore the spiritual resonance of plants. Created between 1919 and 1920, each piece is intricately detailed—down to the petals, stems, and even surrounding insects—and comes with handwritten notes linking each species to states of being or moral insights.

Visitors are encouraged to examine the works up close and consider af Klint’s belief that nature is a guide to the inner self. The final section of the show moves into luminous watercolors that channel the energy of trees and flowers in vivid washes of color. It’s a quiet, contemplative experience that offers a fresh connection to nature right in the heart of the city.

The exhibit runs through September 27 at the Museum of Modern Art. Click here for more information.

Coming Soon

west village

Renovated One-Bedroom

Spacious and fully renovated, this one-bedroom home is located in the heart of the West Village. It offers excellent light, abundant closet space, and an open kitchen, all in a full-service building with a stunning roof deck.

Upper East Side

Convertible Three-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

Quiet and charming, this prewar one-bedroom features 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

Two-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.

In Contract

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.

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 more than 40 years, this unique, house-like apartment is filled with natural light thanks to direct southern and eastern exposures.

Upper East Side

131 East 81st Street, Unit PH15

2 BD 2 BA 1,075 SF $1,495,000

Welcome to PH15, a private full-floor corner penthouse in the heart of the Upper East Side. This light-filled home offers two balconies, private elevator entry, in-unit washer/dryer, a custom LEICHT kitchen, 1.5 baths, and skylights throughout, including one in the en-suite bath with heated floors.

Upper WeST SIDE

7 West 92nd Street, Unit 76

2 BD 1 BA $900,000

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.

Most Recent Mortgage Rates

Rates are from Citibank and are effective as of 6/28/2025. 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 spots to cool off to the city's top outdoor events, it's as simple as sending me an email.

Licensed Associate Real Estate Broker

M: 917.952.0414

rebecca.orbach@compass.com