Brooklyn Luxury Real Estate Market Rises Amid Record Prices, Increased Supply

Brooklyn's real estate market in summer 2025 is marked by rising supply and surprising price resilience, despite softer demand overall. Inventory levels have increased by 8.5% compared to last year, with notable growth in the over-$2 million segment, which also sees stable demand. Luxury townhouse contracts remain strong, with recent sales including an $8 million historic home and a newly developed $5 million townhouse, reflecting ongoing interest in high-end properties. Real estate investors are expected to boost spending on both existing and new assets in 2025, focusing on renewals and diversification across various property types to spread risk and enhance returns. Additionally, the evolving demands of hybrid work are reshaping commercial real estate, emphasizing flexible and affordable office spaces. Meanwhile, local housing events and legislative efforts continue to focus on affordable housing initiatives and tenant protections in New York City.