After a promising start of the spring, New York City’s new development market saw a step back. According to the latest Marketproof report, 196 contracts were signed across the city — down from 237 in May 2024. Homes asking under $4 million hit a 17-month low, highlighting a market segment facing increasing hesitation.
Buyers in this range seem to be holding off — whether due to interest rates, tariffs, or shrinking inventory, the slowdown is tangible.
Manhattan takes a hit
Manhattan recorded just 94 signed contracts, down from 138 last year. The median price was $3.5 million, at $2,250 per square foot. Industry analysts point to a key issue: a lack of fresh inventory. Many top-performing buildings from the past couple of years are running out of units to sell, and new launches are too few and far between to reignite demand.
Brooklyn holds steadier
Brooklyn fared better, with 76 contracts signed, just shy of last year’s 79. The median sale price was $1.3 million, with an average of $1,330 per square foot. While demand is relatively strong, available units are beginning to dwindle here too.
Queens bucks the trend
Queens was the only borough to outperform last May, rising from 20 to 26 contracts. The trend reflects continued buyer interest in more affordable emerging areas where inventory remains fresh, and pricing remains accessible.
A cautionary month
May is traditionally one of the strongest months for NYC real estate. Falling short of expectations is cause for concern, especially when even highly anticipated projects have not yet released official sales data — despite strong anecdotal interest.
Another key takeaway is that the resale market has outperformed new developments. That may be due to buyers gravitating toward ready-to-move-in homes, especially in an environment where pipeline delays and limited launches weaken the new development offering.
