December 2025 Housing Market Report
Key Takeaways:
NYC Sales Market
- The number of homes entering contract in New York City rose 0.7% from November to December, defying the typical seasonal slowdown.
- Buyers returning to the market in 2026 will find more choices, with citywide inventory up substantially by 9.3%.
- NYC homes spent less time on the market before entering contract, primarily due to improvements in Manhattan (-6 days) and Queens (-17 days).
NYC Rental Market
- Amid low vacancy rates, 26,238 rentals were on the market across NYC in December, down 5.8% compared to last year.
- The citywide median asking rent increased by 7.6% from last year to $3,874, with prewar buildings driving growth in Manhattan.
- Across the city, nearly one in four (24.7%) rentals offered at least one month of free rent, the highest share since 2021.
NYC Sales Market
In December, 1,712 homes entered contract in New York City, up 7.2% from a year ago. Though the NYC market typically cools toward the end of the year, this December saw a 0.7% increase in new contracts from November, underscoring the strength of buyer activity. In the past three years, new contracts fell on average by 10.5% from November to December.
Declining mortgage rates have been behind surging buyer activity, and sellers are jumping into the market in response. The city saw 6.2% more new listings in December than a year ago. As a result, inventory is rising despite the faster pace of sales. Across the city, 13,955 homes were on the market in December, up 9.3% from a year ago.
NYC Homes Under $1M on StreetEasy Article continues below
Buyers returning this spring will find more choices citywide. Inventory is up across the boroughs, with Manhattan seeing a 9.3% increase from a year ago, maintaining its position as the largest market in NYC with 6,999 homes for sale as of December. Inventory in Brooklyn rose 10.1% to 3,434 homes, while Queens saw the largest jump, a 17.7% increase to 2,675 homes.
Several pockets of Brooklyn and Queens stood out as neighborhoods with the largest annual increases in inventory. Brighton Beach topped the list with the most significant inventory growth in December, soaring by almost 49%. Bushwick and Midwood were other Brooklyn neighborhoods that experienced substantial annual increases in inventory. Flushing came in second with a 48% jump, the largest increase among Queens neighborhoods.
Neighborhoods With Largest Annual Rises in Inventory, December 2025
| Neighborhood | Borough | Inventory |
Annual Change in Inventory | Median Asking Price |
|---|---|---|---|---|
| Brighton Beach | Brooklyn | 150 | 48.5% | $599,500 |
| Flushing | Queens | 334 | 48.4% | $785,750 |
| Bushwick | Brooklyn | 157 | 38.9% | $999,000 |
| Midwood | Brooklyn | 182 | 36.8% | $699,500 |
| Rego Park | Queens | 142 | 36.5% | $377,500 |
| Long Island City | Queens | 195 | 36.4% | $1,235,000 |
| Financial District | Manhattan | 300 | 30.4% | $1,297,500 |
| Crown Heights | Brooklyn | 125 | 25.0% | $1,375,000 |
| East Flatbush | Brooklyn | 106 | 20.5% | $759,500 |
| Sheepshead Bay | Brooklyn | 301 | 19.9% | $500,000 |
While inventory is rising, buyers should expect a busier market this spring — one of StreetEasy’s five predictions for 2026. Though mortgage rates are poised to stay above 6% in 2026, moderating rates will continue to draw additional buyers into the market. As a result, popular homes are likely to sell even faster in 2026. Citywide, homes that entered contract in December spent a median of 84 days on the market, a decline of two days from last year. Manhattan’s median days on market fell six days to 91, while Queens saw a substantial 17-day drop to 68 days.
NYC Rental Market
The citywide median asking rent rose 7.6% year-over-year to $3,874 in December, as inventory fell 5.8% to 26,238 units. Incoming data continues to indicate that NYC’s long-term housing shortage remains the primary driver of the city’s accelerating rent growth, rather than the FARE Act that took effect on June 11. With low vacancy rates and resilient renter demand, the city is on track to see faster rent growth in 2026.
The housing shortage affects all neighborhoods, but nowhere is its impact more severe than in Manhattan. Since 2010, Manhattan has added about 73,000 net new housing units after accounting for alterations or demolitions, far below 134,000 in Brooklyn and 77,000 in Queens, according to NYC Department of City Planning data. Due to the undersupply of new units, the Manhattan market heavily relies on prewar homes built before 1940, with 56% of the borough’s new inventory in 2025 coming from prewar buildings, compared to 53% in Brooklyn and 35% in Queens.
NYC Rentals Under $3,500 on StreetEasy Article continues below
When supply is scarce, rather than moving into new construction buildings, renters remain in or compete for existing units in prewar properties, which already occupy desirable locations. In December, the median asking rent for prewar buildings in Manhattan soared 11.3% year-over-year to $3,895. By contrast, the median for newer rentals built since 2010 in Manhattan declined 2.0% to $5,431, as these rentals face stiff competition from abundant new supply in transit-rich parts of Brooklyn and Queens. With prewar rentals driving growth, the median asking rent across Manhattan rose 6.4% year-over-year to $4,574 in December.
As new construction expands the market share outside Manhattan, property managers are using concessions to stand out, in addition to lifestyle-driven amenities previously reserved for luxury condos. Nearly one in four (24.7%) NYC rentals offered at least one month of free rent as a concession in December, the highest share since 2021. The Bronx had the highest share of rentals offering concessions at 41.3%. In Brooklyn, 26.3% of rentals offered concessions, compared to 22.8% in Queens and 22.7% in Manhattan.
While new developments come at a premium, they will likely appear more affordable as rent growth in prewar buildings accelerates in 2026. And as NYC renters hunker down in the face of a slow labor market and high financial barriers to becoming homeowners, rental vacancy rates are set to remain low in 2026.
NYC Market Data: December 2025
Sales
 NYC |
 Manhattan |
 Brooklyn |
 Queens | |
|---|---|---|---|---|
| Median asking price | $1,025,000 (-2.4% YoY) | $1,500,000 (0.0% YoY) | $1,017,500 (-3.1% YoY) | $689,000 (+3.6% YoY) |
| Number of homes for sale | 13,955 (+9.3% YoY) | 6,999 (+5.0% YoY) | 3,434 (+10.1% YoY) | 2,675 (+17.7% YoY) |
| Homes entering contract | 1,712 (+7.2% YoY) | 828 (+10.4% YoY) | 437 (-7.2% YoY) | 339 (+10.4% YoY) |
| Median days on market | 84 (-2 YoY) | 91 (-6 YoY) | 73 (-1 YoY) | 68 (-17 YoY) |
Rentals
|
NYC |
Manhattan |
Brooklyn |
Queens | |
|---|---|---|---|---|
| Median asking rent | $3,874 (+7.6% YoY) | $4,574 (+6.4% YoY) | $3,650 (+7.4% YoY) | $3,200 (+6.7% YoY) |
| Number of homes for rent | 26,238 (-5.8% YoY) | 11,490 (-7.6% YoY) | 9,745 (-3.6% YoY) | 4,024 (-5.7% YoY) |
| Share of rentals with price cuts | 13.4% (-1.8pp YoY) | 16.9% (-1.4pp YoY) | 11.0% (-2.3pp YoY) | 11.4% (-1.3pp YoY) |
| Share of rentals offering concessions* | 24.7% (+5.2pp YoY) | 22.7% (+2.9pp YoY) | 26.3% (+8.3pp YoY) | 22.8% (+2.6pp YoY) |
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StreetEasy is an assumed name of Zillow, Inc. which has a real estate brokerage license in all 50 states and D.C. See real estate licenses. StreetEasy does not intend to interfere with any agency agreement you may have with a real estate professional or solicit your business if you are already under contract to purchase or sell property. All data for uncited sources in this presentation has been sourced from Zillow data. Copyright © 2026 by Zillow, Inc. and/or its affiliates. All rights reserved.
