The Manhattan market is off to an exceptional start in 2025. For the fourth time in two decades, all key demand indicators have improved in the first quarter, with sales surging 14% and sales volume skyrocketing to over $6 billion.

In February, Manhattan's rental market experienced one of the lowest vacancy rates in three years. Brooklyn's rental market also experienced lower-than-usual February lease numbers while available inventory experienced its first annual decline in nearly three years.

February 2025 had 85 contracts over $5M, up 29% year-over-year, the third strongest February in 10 years. New development contracts asking over $5M more than doubled annually.

In January 2025, Manhattan sales increased 2% year-over-year to a three-year January high of 804 contracts. This was the fifth consecutive month that sales rose year-over-year, but the least significant annual percentage gain since August 2024.

The second month of 2025 was Brooklyn's most active February in three years.

Manhattan renters faced a challenging market as we entered 2025. The Brooklyn rental market also kicked off the new year on a relatively subdued note.