Dear Clients and Friends,

Both the number of new listings and signed contracts rose in March 2025. Though the increase in new listing inventory was a welcome trend given the lingering lack of supply, the demand-side increase was even more impactful as the number of signed contracts reached their highest level since the Spring of 2022. The average rent in Manhattan also hit a record median of $4,500, further supporting the buy-vs-rent argument for many individuals. All that said, the aggregate NYC market remains in relatively neutral territory (at least for the moment). The approximate percentage of bidding wars in Manhattan was 5.4% in 1Q25 (in a balanced Manhattan market this percentage typically hovers between ~5-7%), and the average price paid in those instances was ~3.7% above the ask. Looking forward, the next three months have historically been the most advantageous time for sellers to list and capture buyer demand. Although macroeconomic uncertainty remains, signs generally point to a strong Spring selling season.

The luxury market ($4M+) had another robust month, notching 179 contracts in March 2025 versus February’s 109. There was also a marked tightening in luxury inventory. In fact, the number of available properties above ~$4M was 28% less than a year ago (1Q24).

In new development news, a pair of river-front ultra-luxury towers at 80 Clarkson Street is quietly beginning marketing. The 113-unit project (projected for completion in December 2026) is located at the intersection of Hudson Square and the Southern border of the West Village, about one block from Google’s newest office headquarters which opened last year. The project is setting new price records for the neighborhood and underscores the scarcity of brand-new residential construction along the Hudson River from Tribeca to Hudson Yards. Asking prices at the project range from a ~$6.8 million 2-bedroom to a ~$63 million 5-bedrom penthouse, and ~80% of the units will have outdoor space.

Finally, in welcome news to many, the New York City Council just approved several bills aimed at minimizing the number of long-standing scaffolding sidewalk sheds related to Local Law 11 and other facade work. In addition to cutting back general red tape, the bills will decrease the Scaffolding Permit timeframe from 1-year to just 3 months.