Dear Clients and Friends,

January 2026 saw a modest decline in signed contracts versus the prior month, which is typical, as this is a lagging indicator that often takes several weeks to reaccelerate after the new year. On the supply side, monthly new listings more than doubled from December 2025 to January 2026. Despite this increase, available apartment inventory remains near decade lows not seen since 2015/2016. While low inventory generally favors sellers, today’s buyers remain deliberate and clear-headed as they evaluate when and how high to bid on homes.

Turning to the luxury market, there were 103 contracts signed for properties priced above $4M in January 2026, moderately besting December 2025 (96 contracts) and January 2025 (also 96 contracts). Approximately 10% of these contracts were for 1122 Madison Avenue, a 22-story, 26-unit new development located on Madison between 83rd and 84th Streets, designed by Studio Sofield and slated for occupancy in mid-2027. The building quietly began selling off floor plans in the second half of the month. While there is limited public information available, we have been in contact with the sponsor’s team and, for the ~9 contracts signed thus far, pricing has ranged from approximately $9.3–12.2M for 3-bedrooms; $10.8–12.9M for 4-bedrooms; and $14.3–22.9M for 5-bedrooms. Full-floor units currently start at approximately $36.5M. The project’s strong sales momentum underscores both the scarcity of product and strong local and international buyer demand for new development inventory in prime Upper East Side locations.

Lastly, on January 20, Governor Hochul announced the proposed $260 billion New York State budget for fiscal year 2027, with an emphasis on affordability, public safety, and education. Notably, the proposal does not include personal income tax increases—countering broader concerns that higher earners may be incentivized to leave NYC, particularly under the Mamdani administration. The FY2027 budget also allocates $250 million toward accelerating new affordable housing construction.