Is New York City’s Housing Market Recovering? Home Prices Up to Start 2025
May 2, 2025
New data from Zillow suggests Manhattan’s housing market may finally be turning a corner. After years of underwhelming growth and a sharp downturn in 2023, home values in New York County rose by 4.2% year-over-year as of March 2025. This rebound marks a significant shift for a market that has struggled to regain momentum since its last major peak nearly a decade ago. With sellers regaining some pricing power and buyers returning cautiously, the city’s high-stakes real estate scene appears to be warming up again.
Home values in New York County rose by 4.2% year-over-year as of March 2025. Access the above graph here. [Link]
According to Zillow’s latest data, the typical home or condo in Manhattan is now valued at approximately $1.13 million, which is one of the most expensive averages in the United States. The increase from $1.08 million last March not only reflects renewed demand but also indicates potential investor confidence in New York City’s long-term recovery. Whether this marks an accurate turnaround remains to be seen, but early 2025 shows encouraging signs.
Manhattan Remains the Most Expensive Housing Market in the U.S. in 2025
Even as housing markets across the country cool, New York County (Manhattan) remains the most expensive major housing market in the United States. With a median home value of $1,131,602, it far surpasses other high-cost counties, such as Kings, NY ($867,336) and Middlesex, MA ($801,371). Moreover, this comes despite Manhattan’s homes being marked as 25.4% undervalued, according to data available on Reventure App.
New York County’s media home value is $1,131,602, which is higher than any other county in the United States. Access the above table here. [Link]
However, this affordability gap is offset by the borough’s extremely high value-to-income ratio of 10.8, tying it with Brooklyn as the highest among large U.S. counties. While price cuts occurred on 9.4% of listings, significantly lower than in Dallas or Tarrant County, the combination of elevated prices and tight inventory underscores Manhattan’s unique market pressures.
NYC Neighborhoods Where Prices Are Rising the Fastest in 2025
While Manhattan’s overall market is up 4.2% YoY, some ZIP codes are outperforming the average. Notably, 10023 on the Upper West Side saw home values rise by 6.4%, reaching a median of $1.31 million, which indicates strong demand in this amenity-rich neighborhood. Meanwhile, 10069, covering Riverside Blvd, posted a 5.2% increase with a staggering median home value of $1.91 million, which is currently the most expensive ZIP code listed. 10128, home to Carnegie Hill and parts of the Upper East Side, posted a 6.6% increase, with the median home price rising from $1.046 million to $1.115 million in just a year.
Home values are rising fastest in Manhattan’s 10128, 10023, and 10069 ZIP codes in 2025. Access the above map here. [Link]
Midtown West’s 10019 also saw values climb 4.7%, up to $1.14 million, reflecting buyer interest in dense, transit-accessible zones. Moreover, the 10065 area (Upper East Side) experienced a 4.1% year-over-year (YoY) rise, reaching $1.49 million, while 10024 increased by 3.9% to $1.45 million. However, appreciation isn’t universal as 10018 declined slightly by -0.5%, showing that recovery is still patchy across Manhattan. Still, the pockets of growth suggest renewed confidence in high-value, well-located urban real estate.
Is It a Good Time to Buy in Manhattan in 2025? Reventure Says Yes, But With Conditions
According to the latest data on Reventure App, Manhattan’s housing market is approximately 25% undervalued relative to long-term fundamentals. This disconnect is primarily the result of a pandemic-era correction where home values dropped nearly 20% while local incomes continued to rise. The platform suggests that this could indicate a buying opportunity, especially for investors or affluent buyers seeking long-term value in one of the world’s most stable real estate markets.
However, affordability remains a significant hurdle for average buyers. With 60% of transactions in Manhattan made in cash and many units owned as second or third homes, competition is skewed toward wealthier demographics. The typical mortgage payment for a condo now exceeds $7,000 a month, making ownership out of reach for many locals.
While Reventure forecasts stable prices in 2025 with a neutral score of 49 out of 100, it’s clear that Manhattan remains a market for the financially elite. If you need a deeper ZIP code-level analysis of New York’s housing situation, sign up for Reventure Apps’ premium plan for just $39/ month. Get exclusive access to various market metrics across any state, metro, county, or ZIP code in the U.S.
FAQs about New York City Housing Market
1. Is Manhattan’s Housing Market Really Undervalued Right Now?
Yes, according to Reventure App, Manhattan is currently undervalued by approximately 25% relative to historical income and pricing trends. This is mainly due to a post-pandemic price correction coupled with rising local incomes, which has created a potential window of opportunity for buyers, particularly investors and cash buyers.
2. Why Are Home Prices Still So High If The Market Is Undervalued?
Despite the undervaluation, Manhattan remains one of the priciest markets in the U.S. due to limited inventory, high demand from global investors, and a large share of cash transactions. Many properties are also held as second or third homes, reducing availability for full-time residents.
3. Will Prices Go Up Or Down In Manhattan In 2025?
Reventure forecasts a stable year ahead, assigning Manhattan a neutral market score of 49 out of 100. While appreciation may be limited, significant price drops are unlikely, especially in high-demand ZIP codes.
