Should You Buy NYC Real Estate in 2026?

Is NYC Still a Good Investment in 2026?

Buying a property in NYC has been a daunting experience as you scroll through listings with prices that make your jaw drop. However, 2026 could potentially be the year that turns things around for the buyer. What’s happening and will you consider taking the plunge?

The Market Is Actually Cooling Down (Kind of)

After the crazy years of the pandemic, NYC’s housing market is finally getting into a rhythm. In 2025, the average length of time it took for a house to sell was 68 days – down from 72 days in 2024, according to StreetEasy. It may seem like forever, but it is much shorter than the chaotic bidding wars of 2021-2022.

What sets 2026 apart is an increase in available inventory, which grew 1.6% in 2025 – the first increase since 2022. Therefore, for the first time in many years, you’ll have choices rather than competing against 20 other bidders for each moderately priced apartment.

There is a caveat – mortgage rates are forecasted to remain higher than 6% throughout 2026, based upon Zillow’s projections.

That’s bad news, however it’s better than 7%+ we’ve witnessed in the recent past.

The real takeaway is don’t expect to hold off until mortgage rates decrease to 3% again; you may miss the appreciation opportunity while waiting.

Your Friends Might Be Your New Roommates (and Co-Owners)

One of the trends that’s rapidly emerging is co-buying with friends or family members.

Based on data from StreetEasy, 56% of prospective NYC buyers plan to buy with a co-buyer, including 9% who plan to buy with their friends and 6% who will buy with their relatives.

It’s not just about dividing the cost of the property (although it does help); multi-family homes such as duplexes or houses with a legal basement apartment are becoming increasingly popular.

You obtain your private unit, split the mortgage, and accumulate equity together. The median listing price for multi-family homes is $1.5 million and has grown 5.2% compared to the prior year – obviously many individuals see the benefit.

For Gen-Z buyers who saw their parents fight to obtain mortgages and wish to be able to have more flexibility, this format is beneficial.

Additionally, with 22% of prospective buyers aged 59 and older looking to purchase, there is significant potential for intergenerational living arrangements.

Rent vs. Buy: The Numbers Make More Sense Now

If you are currently a renter in NYC, get ready for the ride. As of October 2025, rents rose 4.8% compared to January 2025, according to the StreetEasy Rent Index. That rate is anticipated to increase even faster in 2026 due to the continued decline in vacancy rates and fewer units being available to rent.

Here is another number that impacts renters significantly: the median household income for renters in NYC is $64,866 — 46.6% below the median household income for homeowners, as reported by the U.S. Census Bureau via the American Community Survey.

This income disparity puts renters at greater risk of adverse consequences from changes in the market or economic downturns.

Newer rental developments are providing more concessions (i.e., free months of rent) to encourage people to rent their units as quickly as possible. Since 2019, rents in new development buildings have grown 20%, whereas rents in pre-war buildings have grown 23.1%.

Those concessions, however, are short-lived. Building equity through ownership compounds over time.

Where the Opportunities Actually Are

Every area in NYC is not the same in terms of current market conditions. Luxury markets in Manhattan appear to be reaching ceiling pricing levels, while outer boroughs have greater value.

Areas in transit-accessible neighborhoods in Queens, Brooklyn and the Bronx with ongoing infrastructure enhancements represent the best opportunities.

Between January and October 2025, 35,048 homes were added to the NYC market - the largest number of new listings since 2022, as reported by StreetEasy.

Increased inventory availability creates a level of bargaining power for buyers that has not existed for many years.

However, one reality remains: you must act quickly when you identify the right property. Well-priced homes continue to generate multiple bids. The difference now is that overpriced listings actually sit on the market instead of selling instantly.

The Long Game Wins

Ultimately, NYC real estate is a patient person's game. Even buyers who bought at prior peak market times experienced substantial appreciation when they held their properties for 7-10 years.

The fundamental components of NYC are limited supply of land, its status as a global hub of economics and consistent demand for housing—and these will not be going anywhere.

Whether you're investing in a studio in Queens or a brownstone in Brooklyn, maintaining your property's condition is essential to preserving its value; services like Sparkly Maid NYC have become go-to solutions for busy property owners who understand that a well-maintained home is a better investment.

Put it this way: you can refinance your mortgage when rates drop, but you cannot go back and agree to today’s purchase price.

With projected continued appreciation in NYC home prices and 2026 demonstrating the highest sales volume since 2022, purchasing now allows you to capture appreciation before competition becomes even more intense.

Should I Actually Buy NYC Real Estate in 2026?

If you have a steady income, savings for a down payment and anticipate remaining in NYC for at least 5-7 years, then 2026 represents a viable time to purchase.

There has never been a more balanced market than what exists today, there is more inventory, and while interest rates are not optimal, they are manageable.

This is not a “get rich quick” scenario. If you are fed up with rent increases, wish to develop equity, and believe in the future of NYC, the numbers suggest now is a better time to buy than waiting.

Just ensure you’re financially ready, get pre-approved for a loan, and be prepared to act once you locate the correct property.

Perfect timing does not exist. But a good moment? That's what 2026 is shaping up to be.