From July 2024 to July 2025, one in three Manhattan condo sold at a loss, according to luxury real estate firm Brown Harris Stevens. Experts note this is partly due to the city’s high selling fees and steep property taxes, which affect profitability for sellers.

What stands out, however, is Manhattan’s fluctuating condo values over the past decade. In November 2015, the average price per square foot was $1,562; by fall 2025, that figure had dropped to $1,108 per square foot, according to Redfin data.

Condo and co-op values in Manhattan fell sharply amid the Federal Reserve’s economic tightening from 2022 to 2024. Reduced foreign buyer activity also softened demand, influenced in part by shifts in currency exchange rates between the U.S. dollar and currencies like the euro.

“I think there’s probably more upside over the next 10 years than the last 10 years,” said Jonathan Miller, CEO and founder of Miller Samuel, a real estate appraisal and consulting firm.

Experts say many first-time buyers are priced out of Manhattan’s luxury market. “I’m seeing more people in their early 30s getting help from their parents,” said Bess Freedman, CEO of Brown Harris Stevens. “They’re New Yorkers moving uptown to downtown, empty nesters, younger families — not so much international buyers,” she added.

“That’s actually why rents went up so much, because people couldn’t afford to buy,” said Pierre Debbas, a real estate lawyer in the New York metro area.

The median rent in Manhattan is now $4,973, according to rental platform Zumper, a 10% increase from the prior year. A buyer purchasing a median-priced condo at $1,650,000 with a 20% down payment and a 6.25% mortgage could face monthly payments above $8,000, making renting a more practical option for many.

Even wealthy New Yorkers are increasingly choosing to rent, rather than purchase.

New York City Mayor-elect Zohran Mamdani campaigned heavily on affordability issues, drawing national attention.

His platform proposes higher taxes on the wealthy and a rent freeze for roughly 1 million rent-stabilized units. Experts warn this could drive rents higher for an estimated 1.2 million market-rate units in the city.

“What that’s going to cause landlords to do is push expenses onto buildings they control with more open-market units,” said Miller, highlighting potential ripple effects on the rental market.