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Here is why property prices are going to climb in 2025 in New York

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Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the New York real estate spreadsheet template.

Thinking of buying in New York? Get our financial spreadsheet tailored to this specific market.

Hoping for a drop in New York property prices in 2025? Don’t count on it.

Despite economic shifts, the New York market is set to rise, driven by high demand and limited availability.

Let’s explore why property prices in this iconic city are expected to climb in 2025.

We rely on solid, reliable data and statistics from multiple credible sources, all of which are detailed in this post.

We conduct a comprehensive analysis of this data and present our own conclusions at the end. Enjoy the read!

How this content was produced 🔎📝

At What's My Cash Flow, we study the New York real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These price forecasts and data are also based on what we’ve learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources, like USCensus, Redfin’s market insights, and Zillow’s home value data (among many others).

We prioritize accuracy and authority. Observations lacking solid data or expert validation were excluded. For the "observations" and "forecasts" meeting our standards, we go and look for more insights from real estate blogs, industry reports, and expert analyses, alongside our own knowledge and experience. We believe it makes them more credible and solid.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make forecasts accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.

1) In New York, there are only about 0.41 homes for each person, which is quite limited

Signal strength: strong

The fact that there is around 0.41 home per inhabitant in New York indicates a limited housing supply.

This low ratio suggests that the demand for housing is higher than the available supply, which often leads to increased prices. In New York, a unique factor is the high influx of people moving to the city for job opportunities and cultural attractions.

With more people coming in, the competition for available homes becomes fierce, driving prices up. This is especially true in popular neighborhoods where space is already limited and new construction is challenging.

If the ratio were to increase to around 0.6 home per inhabitant, it might indicate a more balanced market, potentially stabilizing prices.

Source: USCensus

2) Selling a house in New York now takes 60 days, compared to the previous 110 days

Signal strength: strong

When you notice that it used to take around 110 days to sell a house in New York, but now it takes only 60 days, it tells us something important. This change suggests that houses are selling much faster than they used to, which often means that demand is increasing.

When demand goes up, it usually leads to higher prices because more people are competing to buy the same homes. This is a classic sign in real estate markets that prices are likely to rise in the near future, as sellers can ask for more money.

For someone considering investing in New York real estate, this faster selling time is a strong indicator of a hot market where prices might continue to climb. It's a signal that investors should pay attention to if they're looking to make a profit.

However, if the time to sell a house suddenly increased to over 110 days again, it might suggest that demand is cooling off, and prices could stabilize or even drop.

Source: Redfin

housing prices New York

We created this infographic to show how property prices in New York compare to other big cities in New York. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.

3) New York home values have already risen by 2.5% since last year, and this trend may persist

Signal strength: strong

The fact that home values in New York have already changed by 2.5% since last year is a strong indicator that the housing market is on an upward trend. This increase suggests that demand is likely outpacing supply, which often leads to rising prices.

Currently, the median home price in New York is around $766,160, and this figure provides a baseline for understanding the market's current state. Additionally, the median sales price per square foot is around $596, which further highlights the value buyers are placing on New York real estate.

These statistics suggest that if the trend continues, housing prices could continue to rise in 2025, making it a potentially lucrative time to invest. Investors should consider these numbers as part of their decision-making process, as they reflect the market's current health.

However, if home values were to decrease by a significant margin, it might indicate a shift in the market dynamics, suggesting a potential downturn instead.

Source: Redfin

4) New York's "Livability" score of 75 indicates a good quality of life

Signal strength: moderate

The livability score of 75 in New York is considered good because it reflects a balance of amenities, safety, and quality of life.

One reason for this score is the extensive public transportation system, which makes commuting convenient and reduces the need for a car. Another factor is the diverse cultural offerings, including museums, theaters, and restaurants, which attract both residents and tourists.

Additionally, the strong job market in sectors like finance, technology, and media contributes to the city's appeal and economic stability. These factors combined suggest that housing demand is likely to increase, potentially driving up prices in 2025.

However, if the livability score were to drop below 60, it might indicate declining conditions, which could deter potential buyers and investors.

Source: AreaVibes

supply and demand real estate New York

Our team designed this infographic to show how competitive the real estate market in New York is vs. other major cities in New York. It shows the percentage of sales above the list price, a key indicator of market competition.

5) In New York, about 21% of homes sell for more than their listing price

Signal strength: minimal

In New York, around 21% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it often means that competition among buyers is fierce and they are eager to secure a property.

This kind of competitive environment typically leads to an upward pressure on housing prices as more buyers are chasing fewer available homes. As a potential investor, you should consider that increased demand often results in price appreciation, making it a favorable time to invest.

Moreover, when a significant portion of sales exceed the listing price, it suggests that sellers have the upper hand in negotiations, further driving prices up. This trend is a clear signal that the market is heating up, and prices are likely to continue rising in the near future.

However, if the percentage of sales closing above the listing price were to drop significantly, say below 10%, it might indicate a cooling market where prices could stabilize or even decrease.

Source: Zillow

6) Over the past decade, home prices in New York have consistently risen by an average of 6.8% each year

Signal strength: minimal

The fact that home prices in New York have appreciated at an average rate of 6.8% over the last decade is a strong signal for potential investors. This consistent growth suggests a history of demand and price growth, which can create favorable conditions for future increases.

While this positive 10-year average home value appreciation indicates a promising trend, it's important to remember that past performance doesn’t guarantee future results. However, it remains a valuable indicator to consider when evaluating the market.

Investors should be aware that other factors, such as economic conditions and interest rates, also play a significant role in determining future price movements. Keeping an eye on these elements can help in making informed decisions.

If the appreciation rate were to drop significantly, say below 2% over a similar period, it might suggest a different market trend.

Source: NeighborhoodScout

real estate values change New York

This infographic we have made will show you how market values have changed during the last decade in New York vs other major places in New York. Here, the percentage increase or decrease in market value will help you see long-term trends.

So, are New York's housing prices set to rise in 2025? Absolutely

New York's housing market is poised for price increases in 2025, driven by several compelling factors.

Firstly, the city has a limited housing supply, with only 0.41 homes per person, indicating a high demand that outstrips availability. This imbalance naturally leads to higher prices as more people compete for fewer homes. Additionally, the time it takes to sell a house has decreased from 110 days to just 60 days, signaling a hot market where demand is rising.

Moreover, home values have already increased by 2.5% since last year, and with a median home price of $766,160, the trend suggests continued growth. The city's good livability score of 75 and a strong job market further enhance its appeal, attracting more buyers and investors. Lastly, the fact that 21% of homes sell above their listing price underscores the competitive nature of the market, pushing prices upward.

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