A recent survey from Bank of America asked would-be apartment buyers what would help them feel better about making a move, and it’s no surprise the answers have a clear theme. They want affordability to improve—specifically, prices and mortgage rates.
Here’s the good news: while the broader economy may still feel uncertain, the New York apartment market is showing some shifts worth paying attention to. Let’s break it down so you know what you’re working with.
Apartment Prices Are Moderating
Over the past few years, apartment prices in New York climbed quickly, sometimes so fast it left many buyers on the sidelines. But today, that pace has slowed down. For perspective, from 2020 to 2021, prices jumped by nearly 20% in just 12 months. Now? Nationally, experts are projecting single-digit increases this year—a much more normal pace.
That’s a sharp contrast to the rapid growth we saw just a few short years ago. Of course, price trends vary across neighborhoods. Some Manhattan and Brooklyn markets are holding steady, while parts of Queens and the Bronx are seeing softer adjustments.
Prices aren’t crashing, but they are moderating. For New York apartment buyers, this slowdown makes planning a budget and making a move a bit less intimidating.
Mortgage Rates Are Easing
At the same time, mortgage rates have come down from their recent highs, which has taken some pressure off apartment buyers. As Lisa Sturtevant, Chief Economist at Bright MLS, explains:
“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”
Even a small drop in mortgage rates can mean a big difference in your monthly mortgage payment. While rates may continue to bounce around in the short term, the overall trend looks more stable than it did earlier this year. Some experts even expect rates to dip further depending on how the economy plays out.
Why This Matters in New York
Confidence in the economy may be low, but the apartment market here in New York is adjusting. Prices are no longer skyrocketing, and mortgage rates have eased from their peaks.
Will affordability challenges disappear overnight? No. But these shifts could give buyers new opportunities to step into the market as we move into 2026.
Bottom Line
Both of the top concerns for buyers—prices and rates—are seeing real changes. That creates a window of opportunity in the New York apartment market.
If you’re thinking about buying or selling an apartment, let’s talk through what these trends mean for you and your goals.
Who You Work With Matters!
If you’re looking for an agent who knows how to navigate New York real estate, contact me today and let’s make a plan.
