Issue 110 - Summer Real Estate Outlook: Partly Sunny with Brighter Skies Ahead

450 East 52nd Street 11FLDP

1001 Fifth Avenue 110C

260 Park Avenue South 10I

155 West 68th Street 1203

536 2nd Street GARDEN

53 West 53rd Street 24D

53 West 53rd Street #38C

53 West 53rd Street #PH78

320 East 42nd St 2403

1593 Deerfield Road

136 East 56th Street 8H

51 Crosby Street 3

445 Lafayette 110C

53 West 53rd Street #30B

53 West 53rd Street #66

53 West 53rd Street #72B

53 West 53rd Street #21A

53 West 53rd Street #53A

53 West 53rd Street #17B

53 W 53rd St #PH76

53 West 53rd Street #71

53 West 53rd Street #20B

53 West 53rd Street #16F

Issue 110 – Summer Real Estate Outlook: Partly Sunny with Brighter Skies Ahead

June 1, 2025

While the real estate market traditionally slows down from Memorial Day to Labor Day, well-priced and carefully curated and marketed properties will still rise to the top — no matter the season. Summer will be a time of clarification, allowing us to head into a very active fall.

Although it is still late spring, home sales remain steady. Buyers continue to be active right now, but we will soon transition past the peak of the spring frenzy as we head into summer. Nothing about this is unusual.

According to the Olshun Luxury Market Report, released in mid-May, the market has been productive. Thirty-one contracts, each for more than $4 million, were signed in Manhattan. Condos outsold co-ops at a ratio of 15 to 12, and four townhouses were in the mix. That said, for the first time since the summer of 2021, the top two sales were co-ops. This is all great news!

While mortgage rates have mostly been flat, the market has experienced steady movement. According to Urban Digs, Manhattan’s active inventory was 7,260 listings in mid-May. New listings were down 24 percent week-over-week, indicating we may have reached a sort of market-movement solstice, which is par for the course each year.

I think the summer will be a time when people try to ascertain how all factors will play out — not just in real estate, but in the world. Overall, I’d say that while the market will certainly not crash, it will merely seek to maintain stability. On the bright side, when the market direction is unclear, it often creates an opportunity that can be just as lucrative as when we have a firmer grasp of where the market is heading and what is available.

For example, if U.S. currency weakens, New York City real estate becomes more cost-effective for foreign investors regardless of the season, sparking even more global interest. Traditionally, even in times of severe strife, such as a recession or a significant downturn or catastrophe, NYC real estate manages to recover incredibly quickly and end up soaring.

Well-priced properties in highly sought-after neighborhoods will always attract buyers, while those in fringe areas, particularly in the summer slowdown, will suffer. The properties that rise to the top generally boast good bones, thoughtful renovations, and a top-tier marketing plan. Intentional buyers are ready to scoop up these refined listings no matter the season, and it’s a big win if they get to do so when more casual buyers are busy having fun in the sun.

More good news for sellers: A recent study by The Happy City Index, created by the Institute for Quality of Life to measure and rank cities based on various factors related to well-being and happiness (including public services, education, environment, and inclusive policies), ranked New York City as the happiest place to live in the country. NYC was also ranked 17th worldwide, putting it among the happiest cities globally, alongside Copenhagen, Stockholm, and Zurich.

As Bankrate aptly summarized, “The continued combination of high mortgage rates, steep home prices and insufficient inventory levels points to 2025 being another tough year for buyers and sellers,” but ultimately leads to more growth in 2025 than 2024. With the right strategies and insights, both buyers and sellers can navigate this unique landscape successfully. The future holds promise, and those who engage thoughtfully with NYC’s market — which is notoriously resilient — may find their efforts rewarded in ways that are fruitful and fulfilling.

Issue 124 – “The Freeze Heard Across New York”

August 1, 2026

Even those of us who spend most of our days in the world of sales rather than rentals cannot ignore the conversation dominating New York real estate this summer: the city’s newly approved two-year rent freeze on nearly one million rent-stabilized apartments. The decision, fulfilling one of Mayor Zohran Mamdani’s signature campaign promises, has ignited passionate debate from tenants, landlords, developers, and economists alike.

As Time Magazine recently reported, “’Freeze the rent’ became the definitive rallying cry of Mamdani’s affordability-focused mayoral campaign for New York City, one of the most expensive cities in the world. Despite skepticism that he could actually pull it off, a board he controls made good on his pledge just six months into his term.”

In a 7-1 vote this June, the Rent Guidelines Board approved a rent freeze on one- and two-year leases on rent-stabilized apartments — which, according to the Time article, “make up about 27% of overall NYC housing stock.”

For tenants living in stabilized housing, the appeal is obvious. In a city where affordability persists as one of the defining challenges of our time, freezing rents offers immediate relief and greater certainty in an increasingly pricey environment.

Yet, as is so often the case in New York real estate, the story is more nuanced than the headlines suggest.

The New York Post presented the other side of the story, explaining that building owners are grappling with rising operating costs: insurance premiums, labor expenses, property taxes, and capital improvements have all increased substantially.

Critics argue that while the freeze protects tenants in the short term, rising expenses without corresponding rent increases may make it harder, particularly for smaller landlords, to maintain and improve aging buildings.

Rent freezes are not unprecedented. Previous freezes have provided short-term relief for tenants while renewing debates over maintenance, capital improvements, and investment in aging housing stock.

The broader issue is supply. Economists across the political spectrum generally agree that New York’s housing shortage cannot be solved through rent regulation alone. As Vox reported, demand continues to outpace inventory, making new housing production, zoning reform, and development incentives essential.

Although the freeze does not directly affect market-rate apartments, landlords with both stabilized and market-rate units may feel pressure to offset constrained revenue by increasing free-market rents where legally permissible. New York State’s 2024 Good Cause Eviction law, however, limits annual rent increases to the lesser of 10% or the local inflation index.

For buyers, particularly investors considering multifamily assets, the freeze introduces additional uncertainty around future income growth. Buildings with significant rent-stabilized components may trade at lower valuations because purchasers will have to underwrite higher operating costs against stagnant revenue.

For sellers, especially owners of mixed-use or rent-stabilized assets, the challenge becomes demonstrating long-term upside. We may see some owners delay sales, while others bring assets to market sooner out of concern that future regulation could become even more restrictive.

From a residential perspective, one unintended consequence may be increased demand for condominiums and co-ops. When rental policy becomes less predictable, many affluent New Yorkers begin to view ownership as a more stable, controllable alternative.

Foreign investors are unlikely to retreat from purchasing trophy condominiums or prime co-ops, which operate outside the stabilized system. In fact, increased regulation in the rental market could strengthen the appeal of luxury ownership as a store of wealth.

The greater consequence will be on institutional and international investors exploring multifamily acquisitions, where limits on revenue growth coupled with rising operating expenses may prompt some capital to pause, reprice risk, or seek opportunities elsewhere.

A major concern today is that the economics are more challenging than they were a decade ago. The Rent Guidelines Board’s own data shows that operating expenses continue to rise, with insurance costs increasing by more than 10% and overall operating costs rising by more than 5%. The effects will likely be felt most acutely in neighborhoods with large concentrations of rent-stabilized housing, while luxury condominium markets such as Tribeca, SoHo, and much of the West Village, where condominium and market-rate inventory dominate, will experience relatively little direct change.

New York remains one of the most desirable real estate markets in the world. The larger question is whether future housing policy can strike the right balance between protecting tenants and preserving the incentives necessary to maintain and improve the city’s housing stock. Recent reporting suggests that landlords and tenants alike are increasingly worried about the long-term sustainability of that balance.

Perhaps most interesting is what this moment reveals about New York itself. Housing has become far more than an economic issue—it has become a cultural and political one. The debate over rent stabilization reflects larger questions about who gets to stay in the city, who can afford to enter it, and what balance should exist between protecting existing residents and encouraging future investment.

As someone whose business focuses primarily on the sales market, I often remind clients that New York real estate rarely moves in straight lines. Policy shifts ripple through every corner of the market, shaping rental demand, buyer behavior, and investment strategy alike.

Yet what doesn’t change is New York’s capacity to reinvent itself. The conversation around housing will evolve, administrations will change, and policies will come and go. But the city’s enduring challenge — and opportunity — will always be finding ways to be both livable and aspirational.