The New York City real estate market is stabilizing with modest price increases and growing demand for affordable housing. Inventory remains tight, and sales activity is picking up, particularly in mid-range price brackets.

The current market is shaped by a combination of supply constraints and shifting consumer priorities. According to the New York Association of Realtors, closed sales in the city rose 8.5% year-over-year in the second quarter of 2023, while the median price for resales increased 2.1% to $835,000. However, inventory levels are at a 12-year low, with a 1.5-month supply of listings—below the six-month equilibrium. This scarcity has driven up prices in prime areas like Manhattan and Brooklyn, though affordability remains a challenge. mortgage rates, averaging 7.25% for 30-year loans in July 2023 (Federal Housing Finance Agency), have limited first-time buyers despite lower rates compared to 2022 peaks. Developments like the $3.5 billion affordable housing project in Queens and tax incentives for middle-income buyers highlight efforts to address housing shortages. Meanwhile, commercial real estate faces headwinds, with vacancy rates rising to 14.3% in Manhattan (Cushman & Wakefield), reflecting economic uncertainty. These factors collectively underscore a market balancing recovery with persistent affordability pressures.