Surge of New Listings in NYC Expanded Buyers’ Options in January

• Homes entering contract remained stable in January, as lower mortgage rates and rising new listings supported buyer demand.
• As sellers adjusted prices, the citywide median asking price slipped 2.4% from a year ago to just below $1M.
• High-end buyer demand supported a sharp 29% increase in new contracts in the most expensive third of the market in Manhattan.

• Renters faced a challenging market characterized by supply shortages in January, with inventory falling 7.9% year-over-year to 27,290 units.
• Manhattan remained the most challenging rental market for New Yorkers as inventory declined annually for the 23rd consecutive month in the borough.
• New developments continued to expand renters’ options in Brooklyn and Queens, resulting in rising concessions across NYC.

After a strong surge in December, the number of homes entering contract remained stable in NYC. In January, 1,479 homes entered contract, up 0.1% from January 2025. Lower mortgage rates compared to last year and the ongoing surge of new listings are set to support sales activity in 2026.

 

As sellers continued to join the market, 3,225 homes were newly listed for sale in January, up 6.7% from a year ago. The median asking price of these homes was 2.4% lower than last year, indicating that new sellers adjusted prices according to market conditions. With more homes offered at lower prices, the median asking price for all inventory in NYC dipped 2.4% from a year ago to $999,999 in January. Rising inventory and asking prices have started to tip the balance of power toward buyers in select neighborhoods.

 

The busiest market was Manhattan with 733 new contracts, up 5.6% year-over-year. The increase reflects rising demand for high-end homes as asking prices declined, making them more attractive to wealthy buyers. The most expensive third of the market in Manhattan saw 196 new contracts, a 29% jump from a year ago. The starting price of this segment was $2.475M in January, down 2.8% from a year ago. Meanwhile, the most expensive 10% scored 38 new contracts, up 18.8%, with a threshold price of $6.995M, down 6.7% from a year ago.

 

In Brooklyn, 353 homes entered contract in January, down 12% from a year ago. Condos led the decline in contracts, falling 15.3% year-over-year to 133 deals. Despite the drop in volume, the share of $1M+ condos under contract rose to 60.2% this January from 50.3% last year, as demand remained solid within the upper end of the Brooklyn condo market.

 

Unlike Brooklyn, Queens saw a strong start to the new year with 289 homes entering contract, a 4.3% increase from a year ago. With the median asking price at $678,000 in January, homes in Queens may appear more appealing to buyers with smaller budgets than Brooklyn homes. Within Queens, the condo market saw a 16.9% increase to 76 new contracts, while houses saw a 19% jump in contracts, including single- and multi-family homes. Forest Hills remained the most active market in Queens, while Flushing emerged as the second busiest after ranking seventh a year earlier.

The citywide median asking rent rose 8.3% year-over-year to $3,900 in January, as inventory fell 7.9% to 27,290 units. As renters stayed put amid economic uncertainty and high barriers to homeownership, vacancy rates remained low, driving up competition among renters. As vacancy rates trend lower, the city will likely see faster rent growth in 2026.

 

Manhattan rental inventory declined faster than any other borough. In January, 12,239 units were on the market in Manhattan, down 6.0% from a year ago, marking the 23rd consecutive month of annual inventory declines. The median asking rent rose 5.6% year-over-year to $4,595. Upper Manhattan was the only area of the borough that saw a rise in inventory from a year ago with 1,991 rentals on the market, 3.2% more than last year. The declines in the rest of the borough likely reflect strong demand from New Yorkers prioritizing quick access to office hubs in Midtown and Downtown Manhattan.

 

Brooklyn and Queens combined became a larger rental market than Manhattan in 2025 as new developments expanded renters’ options. In January, 9,875 units were on the market in Brooklyn and 4,199 units were on the market in Queens. While inventory declined in both boroughs, growing new development rental markets offered plenty of market-rate units, in addition to rent-stabilized units reserved for low- to moderate-income households distributed through NYC Housing Connect.

 

Following rezonings over the last decade, some neighborhoods offer more freshly built rentals than others. In January, Downtown Brooklyn saw 214 new rentals in buildings completed just last year — the most in NYC. While new developments come at a premium, many of them offer lifestyle-driven amenities previously reserved for luxury condos with access to mass transit.

Neighborhood	Borough	New Rentals Built	Median Net Effective Rent
Downtown Brooklyn	Brooklyn	214	$4,850
Gowanus	Brooklyn	213	$4,856
Fort Greene	Brooklyn	155	$4,757
Crown Heights	Brooklyn	134	$3,730
Boerum Hill	Brooklyn	103	$4,600
Long Island City	Queens	103	$4,767
Bedford-Stuyvesant	Brooklyn	102	$3,350
Greenpoint	Brooklyn	101	$4,475
Inwood	Manhattan	85	$2,652
Central Harlem	Manhattan	67	$3,601

 

As new construction expands the market share, property managers are increasingly offering at least one month of free rent as a concession. In Brooklyn, 23.9% of rentals offered concessions, compared to 17.2% in January last year. In Queens, 23.0% offered concessions, up from 20.4%. Renters were least likely to find concessions in Manhattan, with just 20.4% of units offering one.