If you’ve seen headlines about apartment prices dropping in New York, it’s natural to wonder what that means for the value of your own apartment. Here’s what you really need to know.
The Relationship Between Apartment Prices and Equity
Apartment equity moves in sync with market values. When prices rise, equity builds. When prices cool—even slightly—equity growth slows too. Here’s how that’s played out recently.
After the record-setting price surge in 2020 and 2021, a little cooling was inevitable. Back then, the number of apartments for sale hit a record low, causing values (and your equity) to climb sharply as buyers competed over limited inventory.
Prices couldn’t continue at that pace forever. As more apartments have come on the market this year, price growth has moderated—and equity gains have slowed too. But that doesn’t mean you’ve lost ground.
Putting It Into Perspective
Chances are, you still have far more equity than you did just a few years ago. According to Zillow, apartment prices nationwide have risen roughly 45% since March 2020—a huge gain.
Even in New York, where headlines sometimes focus on minor price dips, the average decline is only about 4%. These modest decreases don’t erase years of growth. Apartment owners who’ve held their units for several years are still well ahead.
Data from the Federal Housing Finance Agency (FHFA) reinforces this picture. Every state has seen price gains over the past five years, meaning apartment owners everywhere have built significant equity.
Why Today’s Market Isn’t a Concern
If you’re worried that prices might crash and equity could take a bigger hit, here’s some reassurance from Jake Krimmel, Senior Economist at Realtor.com:
“The slight recent declines in aggregate value and total home equity are not cause for concern… Although the market is coming into better balance, large price declines nationally are extremely unlikely in the near term.”
The current price moderation is simply a market finding balance after years of rapid appreciation. Most apartment owners remain in an incredibly strong position.
Bottom Line
Even with small price declines, today’s New York apartment owners are sitting on near-record amounts of equity.
If you’re curious how much equity you’ve built—or what your apartment is truly worth today—let’s connect.
Remember: Who You Work With Matters!
Reach out to me, Julian Hutter – Compass – Real Estate Advisor, and let’s explore your options. Whether you’re thinking of selling, downsizing, or moving up, I can help you make informed decisions in today’s market.
