New York City real estate hits record rents amid property sales slump

New York City is experiencing a significant divergence in its real estate market. According to a Realtor.com report, median asking rents in the city reached a record high of $3,785 in the third quarter of 2026, marking a 4.5% increase from the previous year and a 27.5% rise since before the pandemic.

Rent increases were observed across all boroughs, with Manhattan seeing the highest jump at 8.3% to a median of $5,375. Smaller units (zero to two bedrooms) drove much of this growth, with rents for these units rising 7.1% annually. The cost of purchasing a median-priced home remains significantly higher than renting, estimated at $10,737 per month.

In contrast, the investment property market saw a slowdown in recent months. While New York City recorded $23.69 billion in investment property sales during the first nine months of 2026—a 9% increase over the same period in 2025—third-quarter volume fell 25.2% year-over-year. Analysts attribute this quarterly decline to higher financing costs and volatility in Treasury yields, which have impacted buyers' ability to finalize deals at previous price points.