In May 2025, Manhattan’s residential real estate market remained steady, showing resilience despite a mix of global and local factors. Median prices edged up, supported by continued strength in the ultra-luxury segment, where cash buyers moved decisively amid stock market volatility and rising mortgage rates tied to new federal tariffs. For properties $5M+, the number of contracts signed increased by 13%.
Buyers in the mid-market range ($1–3M) were more cautious, as they adjusted to rising mortgage rates and broader economic uncertainty. In this price range, the number of contracts signed decreased by 12.5% compared to April. Still, institutional interest in office-to-residential conversions surged, with projects like 5 Times Square and 25 Water Street advancing under updated zoning rules and newly extended tax incentives.
Political attention sharpened ahead of the June mayoral and borough president primaries, which brought housing policy and development strategy to the forefront of the public conversation. Affordability and access remained key themes, with the spotlight on rent-stabilized housing as city officials worked to address challenges around potential foreclosures.
Overall, the market held its footing, neither accelerating nor slipping, while adapting to a changing landscape.
Best Wishes,
Boris Fabrikant, Esq. and Collin Bond, Esq.
