Dear Clients and Friends,

Since the administration’s tariff announcements on April 2^nd and the ensuing macroeconomic and financial developments, our clients have been asking more than ever: ‘How is the NYC real estate market?’. The short answer is that although it’s too early to predict where dynamics will ultimately settle, April 2025’s performance was largely unchanged from the month prior. There was a marginal decline in both new listings (down 0.2% from March 2025) and contracts signed (down 2% from March 2025). Though the number of contracts signed in April 2025 was slightly lower than the prior month, it was still ~14% higher than April 2024. 

With financial markets and news cycles evolving quickly, we are seeing a flight to quality (location, views, architecture), and a buyer base that is more likely to pursue the one or two listings that ‘stand out’ from the spectrum of homes they are seeing, versus bidding on multiple properties to see what sticks. The NYC residential market is more nuanced than ever depending on renovation level, pricing, and location -- and can range from multiple competitive offers on some properties where buyers perceive value, to other homes spending prolonged periods on the market. At present, future interest rate levels, the value of the dollar, relative global positioning, and possible tax cuts have yet to fully play out. That said, real estate’s worth as a tangible asset and New York City’s unique combination of walkable neighborhoods with a diversity of preeminent cultural, retail, restaurant, professional, and school offerings has always anchored its enduring appeal.

Zooming in on the luxury market, 117 contracts were signed for homes priced above $4 million in April 2025 - - a decrease from the month prior, but still higher than April 2024.

Lastly, we wanted to focus on two longer-term drivers of NYC’s residential demand. First, we are beginning to see the start of The Great Wealth Transfer (the estimated ~$84 trillion in aggregate intergenerational wealth that is anticipated to be transferred from Baby Boomers to their heirs) fund a portion of NYC real estate purchases. Secondly, office leasing in Manhattan for April 2025 was up 23% year-over-year coming off of its strongest Q1 since 201.