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Manhattan Condos: A Losing Game?
26 Nov
Summary
- One-third of Manhattan condos sold at a loss recently.
- Manhattan property values have fluctuated over the last decade.
- High buying costs push many New Yorkers to rent.
In Manhattan, a significant portion of the real estate market is underperforming. Between July 2024 and July 2025, one in three condominium units sold at a financial loss, a trend attributed partly to high city selling fees and taxes. This follows a decade of considerable volatility in property values, with the price per square foot in Manhattan decreasing substantially since November 2015.
The downturn in condo and co-op values from 2022 to 2024 was exacerbated by economic tightening and a reduction in foreign buyers, influenced by shifting currency exchange rates. Despite recent challenges, some experts predict potential market growth over the next decade, though accessibility remains a major concern.
First-time buyers are largely priced out, with many relying on parental assistance. This lack of affordability directly contributes to rising rents, which have increased by 10% in the past year, making renting a more feasible option for many, including affluent residents, and a key issue in local politics.
