NYC Real Estate Market Sees Moderate Price Gains Despite Rising Mortgage Rates

The New York City residential real estate market recorded moderate price appreciation in Q1 2026, with median condo and co-op prices rising 3.4% year-over-year. This occurred despite a backdrop of rising mortgage interest rates, which climbed to an average of 7.1% for 30-year fixed loans.

Market analysts attribute the resilience to a strong local economy and sustained demand for centrally located properties. Manhattan continued to lead with a 4.1% price increase, particularly in neighborhoods with access to amenities and transit.

However, buyer activity showed cautiousness, with some potential purchasers delaying decisions amid affordability concerns. “Mortgage rate hikes have reintroduced challenges but haven’t dampened the desire for NYC living,” said real estate broker Julia Kim.

Looking ahead, pricing momentum may moderate if rates rise further or economic uncertainty intensifies.