[title]
The only predictable thing about New York's housing market is that it will always be unpredictable, and 2024 was no exception. We saw rent prices surpass pre-COVID levels, but we also had some wins, like the elimination of mandatory broker fees.
StreetEasy just released its predictions for the 2025 housing market in New York, which were written by their Senior Economist Kenny Lee. Here's a breakdown of what he expects to see in the coming year.
RECOMMENDED: Flatbush is one of the coolest neighborhoods in the world
His first prediction is that co-ops will be making a comeback. High asking prices for condos and a low supply of affordable housing means that many buyers will be looking to buy co-ops, despite the often difficult approval process to get one. To get approved for a co-op, a group of residents who are elected to manage a building typically have to review the applicant and consider factors like work history and references, per Homeownering. The lengthy process might be worth it for some, though: in 2024, co-ops were 26% cheaper than condos of comparable size and with similar amenities.
The second prediction is that competition for housing in the suburban housing market will mean that more New Yorkers will be looking to buy within the five boroughs. The suburbs located within commuting distance of New York are in more demand than ever: in fact, suburban houses only spend two to five weeks on the market on average before they’re snatched up. Meanwhile, available housing in the city proper increased by 16.8% compared to 2023, making the city’s market less cutthroat than the suburban market.
The third prediction we could have guessed ourselves: the luxury market will boom. Astronomical asking prices deterred many from buying luxury condos in recent years, which led to slower sales and empty units. As a result, the starting price of the luxury segment is down 6.1% compared to one year ago, piquing interest from potential buyers once more.
Fourth, rental markets to the east and west of Manhattan will continue to heat up—that includes Brooklyn and Queens as well as Jersey City and Hoboken, with the latter two cities potentially surpassing Brooklyn as the most expensive rental market outside of Manhattan. This is in part to the volume of new developments being built in the boroughs and cities outside of Manhattan with more amenities and modern comforts.
On that note, the final prediction is that New Yorkers will be looking for apartments with more amenities such as outdoor space, pools, gyms and in-unit laundry. Specific searches for apartments with these amenities skyrocketed in the past year, and many renters and buyers seemed more willing to pay a premium in order to get the comforts that were once rare—but always coveted—in our crowded city.
To summarize, in 2025 co-ops will be hot; high prices in the suburbs will drive more people back into the city; luxury condos will be in more demand; Brooklyn, Queens and New Jersey will be highly sought after; and we'll all be willing to pay more for amenities that will make our lives more convenient. If you want to know more about the research, you can read the full report here.