While much of the U.S. real estate market is slowing down due to high interest rates and economic uncertainty, Manhattan is experiencing a surge in sales. In the second quarter of 2025, residential transactions reached their highest level in the past two years, marking a 16.6% increase compared to the same period in 2024.

Cash deals accounted for a record 69% of all transactions, reflecting the growing presence of affluent buyers who are less affected by mortgage rates and driven by wealth transfers, tax strategies, and long-term investment goals. Many of these buyers are coming from other parts of the country, such as California, attracted by large apartments with full services and amenities.

At the same time, the rental market remains under pressure.

Since the FARE Act shifted broker fees onto landlords, rents have risen, prompting some renters to consider buying as a more sustainable long-term option.

Despite geopolitical tensions and local political uncertainty, the Manhattan market continues to demonstrate resilience, attracting buyers in search of stability and long-term value.

(source: The Real Deal, Birckunderground, Miller Samuel, picture: Brandon Jacoby)