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    A recent report by StreetEasy Senior Economist Kenny Lee outlines five key predictions for the New York City real estate market in 2025. These forecasts are based on trends observed in 2024, a year marked by record-high housing costs and significant changes within the industry.

    As affordability becomes a major concern, Lee predicts that more potential buyers will turn to co-ops as an affordable alternative to condos. While the approval process can be challenging, the cost savings may be worth it for those willing to endure it.

    A shortage of suburban homes in the New York metro area is expected to discourage residents from leaving the city, with competition for available listings driving up prices. In contrast, the sales market in New York City saw more listings than its suburbs in 2024, giving buyers more options and negotiating power.

    The luxury market is also poised for a boom as prices and interest rates decline. With high-end properties becoming more accessible, prospective buyers will be eager to take advantage of lower costs and secure these units at a better deal.

    New developments and amenities in Queens, Brooklyn, Jersey City, and Hoboken are expected to drive up demand in these areas. The boroughs' rental inventory has already caught up with Manhattan's in 2024, and this trend is likely to continue in 2025, stabilizing the rental market in New York City.

    Finally, Lee predicts that New Yorkers will increasingly prioritize amenities like outdoor spaces, pools, and gyms as they seek comfort and convenience at home. This shift is particularly relevant for those with hybrid work arrangements, who spend more time working from home.