Manhattan Rents, Brooklyn Home Prices Reach New Records

Brooklyn home prices have reached new highs in the second quarter of 2025, with median prices increasing slightly by 0.5% to $995,000 and average sale prices rising 5.1% to over $1.3 million, while inventory and sales remained stable. One- to three-family houses saw the largest price increases, with median prices up 9.1%, whereas condos experienced a decline in median sales price by 3.7%. In Manhattan, rents continue to surge, setting new records with median rent reaching $4,625 in June, a 7.6% year-over-year increase, driven by strong demand and low vacancy rates. The rental market in Manhattan is further impacted by the FARE Act, which requires landlords to pay broker commissions, likely contributing to higher rents as landlords recoup these costs. Brooklyn also saw rent increases, but at a slower pace, with median rents rising 1% year-over-year and rental prices per square foot setting new records. Competitive pressures are intense in both boroughs, with a significant share of rentals leased above asking price, highlighting continued tight supply and high demand in New York City's housing market.