New York City 2025 U.S. Real Estate Market Outlook Midyear Review

Market Overview

In mid-2025, Manhattan’s multifamily sector continued to benefit from very tight supply as the residential vacancy rate stayed below 2 percent. Multifamily sales volume slowed in H1 but average price per square foot climbed to its highest level since mid-2022, signaling robust demand for existing inventory. Rising construction costs and regulatory hurdles have curtailed new development, further reinforcing value in core existing assets.

About CBRE

CBRE is the world’s largest commercial real estate services and investment firm, operating in over 100 countries. The firm provides a full spectrum of services including leasing, capital markets, valuation, property management, and advisory. CBRE’s market outlooks fuse detailed data with local market knowledge to offer actionable insights across property types and metro areas.