By: Hellen Zaboulani

In a turn of events, the one borough of New York City where home prices have been falling rapidly is Manhattan itself. While home prices in the outer boroughs continue to rise, the median asking price in Manhattan dropped to $1.55 million in January, down 6.3% compared to the same period last year, as per data from StreetEasy. “Prices have come down in Manhattan, so it’s a good time to get a good deal – if you can stomach the interest rate,” said Emily Ackerman, a real estate agent from Compass.

As reported by the NY Post, home prices in the other four boroughs have been continuing their upward cycle. Queens saw the biggest rise, with a median asking price of $700,000, up an impressive 12% compared to the same month in 2024. Staten Island also saw an 11.9% jump, reaching a median price tag of $727,000 in February, up compared to the same month in the previous year. In the Bronx, the median home price hit $340,000, up 6% compared to 2024.

In Brooklyn the median price increased to $1.1 million in January, up 4.8% compared to January of last year.

“I think there’s a bigger picture at play here, when it comes to Manhattan asking prices declining – and that really comes down to the outer boroughs,” Corcoran real estate agent Andrea Kelly said. “When you’re talking about increasing median prices for properties in Brooklyn and Queens and Staten Island, it’s because people right now are value seeking . . . people are just really excited at the idea of getting more for their money and still being within reach of all the Manhattan experiences.” She added,

“Even out-of-state buyers have been asking more for Brooklyn and Queens because they’re primary destinations now. They can experience all of the perks of Manhattan, but then you’re able to come back to a quieter, less hectic, cool, community-oriented neighborhood. It’s what buyers are looking for now more than ever.”

Per the Post, across the five boroughs, overall property inventory fell 3.5% year-over-year, to 14,840 units for sale citywide as of January, per StreetEasy data. Increased buyer competition and lower inventory was especially noted in Brooklyn. “Right now, when a two-bedroom in Park Slope goes on the market, if it’s priced correctly – automatic bidding war,” Kelly said. “When you have a lack of inventory and a demand for inventory, it drives prices up. So that’s what we’re seeing with those increases in the outer boroughs,” she said.

Kelly also noted that the increased demand in the outer boroughs is also propelled by the ridiculously high rents in Manhattan. Most renters are priced out of Manhattan. In February, the average Manhattan rental price was a whopping $5,368 monthly – which is close to four times the national average rent of $1,482 published for 2025, as per RentalRealEstate.

“It’s really, really tough for people to rent in the city right now, and if they have the means to buy, they’re coming to the conclusion that it is probably in their best interest to do so,” Kelly said.