- NYC multifamily sales volumes fell 57% in Q4, despite stable deal counts.
- Political change and rent freeze policies spurred some long-term owners to sell.
- Investor appetite remains strong as rents hit record highs and vacancy stays low.
- Development site sales surged, driven by condo supply constraints and price growth.
Multifamily Market Sees Rapid Shift
Bisnow reports that New York City’s multifamily sales market cooled in the fourth quarter as the election of Mayor Zohran Mamdani, who campaigned on a rent freeze, created renewed uncertainty for owners and investors. Manhattan investment sales totaled $2.7B for the quarter, down from $4.9B in Q3, according to Avison Young. Multifamily sales suffered the largest decline among asset classes, falling 57% in dollar volume while transaction counts slipped just 3%.
Uncertainty Drives Owner Decisions
Political shifts—especially the promise of continued rent restrictions—drove some longtime owners to exit the multifamily market. Avison Young’s James Nelson noted that while not a majority, a notable number of families decided to “pull the rip cord” and sell buildings held for decades. Activity briefly paused post-election but quickly resumed as investors evaluated their strategies. The mayoral outcome has already prompted CRE stakeholders across the city to reassess policy risks and adapt their investment approaches accordingly.
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Investor Interest Remains Despite Policy Risks
Overall interest in NYC multifamily properties endures. Rising rent levels and record-low vacancies have kept buyers pursuing deals even as sellers reassess. Manhattan multifamily prices rose 46% quarter-over-quarter, hitting an average of $1,005 PSF. Two standout Q4 transactions included the $33.3M trade of 765 First Ave. at $2,157 PSF, and 90 Bedford St. at $32.7M, or $2,098 PSF.
Land and Condo Markets Stay Hot
The Manhattan development site sector posted $2.1B in sales for 2025, the strongest annual tally since 2018 and up 33% year-over-year. Driven by looming supply shortages, particularly for luxury condos, developers are targeting prime sites. Prices continue to rise amid shrinking inventory—exemplified by a $62.6M Upper East Side assemblage where projected sellouts top $4K PSF. As demand outpaces deliveries, especially on the Upper West Side, investors and developers are positioning for ongoing growth in the multifamily and condo markets.
