Within the first quarter of 2026, exercise in New York Metropolis’s new improvement market adopted the trajectory of the remainder of the financial system: huge spending from rich consumers and matches and begins from the remainder of the market.
Contracts signed for brand spanking new condos in Manhattan asking $10 million or extra made up 55 p.c of the full contract quantity for the quarter, in response to analysis from Brown Harris Stevens Improvement Advertising and marketing. The 56 contracts signed within the quarter for these houses had been additionally the very best for any interval this decade, and up 87 p.c from the primary quarter of 2025.
The spending spree on the excessive finish got here regardless of latent fears over New York Metropolis Mayor Zohran Mamdani’s tax proposals and the warfare in Iran rattling the economy with shocks to grease provide.
“These two components get squashed if you see so many $10 million plus properties transacting,” mentioned BHSDM president Stephen Kliegerman. “Rich individuals continued to see New York as a spot they need to reside and make investments their cash for the longer term.”
Tight squeeze
Regardless of the luxurious market’s efficiency, the 667 contracts signed throughout Manhattan, Brooklyn and Queens had been down 15 p.c from the primary quarter of final yr, in response to information from Marketproof.
The low contract numbers proceed to be pushed by a scarcity of latest condos, mentioned Corcoran Sunshine Advertising and marketing Group’s Ryan Schleis. “As a result of stock is pretty constrained, it’s not sufficient to have that sort of headline gross sales quantity truly be excessive,” he mentioned. “We simply don’t have sufficient stock to actually fulfill all of the demand on the market.”
In Manhattan, for instance, Schleis mentioned simply 83 new items got here to market within the first quarter and out there new improvement fell under 3,000 for the primary time since 2014.
“It’s all product-driven,” mentioned Marketproof’s Kael Goodman. “Something that’s good product, sells shortly.”
A query of mortgage charges
New improvement contracts in Manhattan had been roughly flat at 358, in response to Marketproof. However the luxurious market helped push contract quantity previous $2 billion for under the fifth time within the final decade, in response to information from BHSDM.
A few of these dear gross sales got here from Legion Funding Group and Nahla Capital’s 1122 Madison Avenue, which put 22 of its 26 items into contract, together with a $90 million penthouse that was the costliest deal of the quarter. A Corcoran Sunshine Advertising and marketing Group staff led by Cathy Franklin launched gross sales in January.
However an Higher East Facet rental-to-condo conversion, the place no flats requested greater than $7 million, signed essentially the most contracts within the quarter, in response to information from Corcoran Sunshine. Associated Firms’ The Strathmore, at 400 East 84th Avenue, netted 28 contracts final quarter at a median asking value of over $1,700 per sq. foot. A Corcoran Sunshine staff launched gross sales there in October.
The Strathmore’s efficiency reveals that there’s a deep bench of consumers past simply the ultra-wealthy, Schleis mentioned. However these consumers are much more mortgage fee delicate, and their elevated exercise mirrored mortgage charges’ regular decline within the first half of the quarter, solely to recede as charges spiked on inflation fears associated to the warfare in Iran, Schleis added.
After dropping under 6 p.c for the primary time in three years, 30-year fastened mortgage charges rose to six.46 p.c to finish the quarter, in response to information from the Federal Reserve Financial institution of St. Louis. “On the demand aspect, [rates] have an effect on the low finish extra,” Schleis mentioned.
In Brooklyn, contract signings had been down over 22 p.c from final yr to 239, in response to Marketproof information.
The borough noticed over 300 items come to market, however about 40 p.c of these new condos had been in buildings with 10 items or much less, mentioned BHSDM’s Jason Thomas. “There’s simply not a whole lot of selections in Brooklyn,” he mentioned.
The highest-selling constructing within the quarter was one of many bigger launches in January, a 43-unit improvement at 127 Kent Avenue in Williamsburg referred to as the Sixth. Developed by Joyland Group and Prospect Builders, the constructing has already put over half of its items into contract, together with a pair of penthouses asking over $6 million.
A Corcoran Group staff led by Deborah Rieders launched gross sales in January.
Contract signings had been down 30 p.c in Queens to 70, in response to Marketproof. In contrast to the opposite boroughs the place newer tasks led the way in which, the top-selling constructing in Queens, Century Improvement Group’s Vesta, launched gross sales final April with Serhant’s Kayla Lee and Serhant New Improvement Advertising and marketing. The undertaking netted 12 contracts within the quarter.
Learn extra
New York new development has a looming inventory crisis
Legion, Nahla Capital nab buyer for 1122 Madison Ave penthouse asking $90M
New condos on Williamsburg waterfront scores top contracts
