Undivided Intelligence Report: Q2 2026 The Manhattan and Brooklyn Condo Market

The full story behind the record. Prices, new development, rates, and rents, in one place.

Every headline this quarter says the same thing: record prices. That's true, but it's not the story. The story is that New York is now running two separate markets at once. One is a luxury market with more money than product. The other is everyone else, squeezed by supply.

Here's what actually happened in the second quarter.

1. Prices set records, but volume didn't

The median sale price for a Manhattan apartment reached $1.3 million in Q2, a new record and the sixth straight quarter of annual gains, per The Corcoran Group. Brooklyn condos did more than keep pace. The median Brooklyn condo sold for $1.49 million, up 14.8% from a year ago.

Read that again. The median Brooklyn condo now costs more than the median Manhattan apartment.

Under the record, activity was mixed. Manhattan closings fell 6.3% and active listings dropped 15%. Prices aren't rising because demand is surging. They're rising because there's less to buy. The one price band where deals actually increased: $2 million to $4 million.
The forward signal is stronger than the closed number. Signed contracts rose 11% to 3,679, the best second quarter in four years, per Corcoran.

2. New development has a supply problem, not a demand problem

Only 112 new condo units launched in Q2. Total available new development supply sits near 3,100 units, roughly three fifths of the decade average, per Marketproof. Almost 40% of what's available sits in just five buildings, and four of them started selling five or more years ago.

When priced correctly, new product moves. Related's Strathmore on the Upper East Side signed 38 contracts in the quarter. Units asking $3 million or less have about four months of supply left, per SERHANT's data. That is a fast market by New York standards.

At the top, it's a different world entirely. Contracts for new Manhattan condos asking $10 million or more nearly doubled, from 21 to 38, per Brown Harris Stevens Development Marketing. Citywide, the 56 contracts signed above $10 million set a record for any quarter this decade.

3. Rates quietly moved in buyers' favor

The 30 year fixed averaged 6.49% in early July, per Freddie Mac. A year ago it was 6.72%. That's not a dramatic move, but the direction matters, and it hasn't stopped prices from setting records. Buyers waiting for rates to fix affordability are watching the price side get worse faster than the rate side gets better.

Two other numbers deserve attention. Properties took an average of 95 days to sell in Manhattan, up 21.8% from last year, per Coldwell Banker Warburg. And monthly carrying costs are climbing faster than inflation. The average co-op maintenance hit $3,077 a month, up 10.2% in a year. For condos, common charges plus taxes averaged $4,466. Buyers should underwrite the monthlies as carefully as the purchase price.

One policy note: New York's first pied-a-terre tax took effect July 1. Corcoran reports contract activity above $5 million has softened since it was announced. If you own in that band, this deserves a conversation.

4. The rental market keeps making the case for ownersManhattan's median rent hit $5,295 in June, a new all time high, up 8% from a year ago. Brooklyn set its own record at $4,350. Manhattan rental listings were down 16% year over year, per Miller Samuel and Corcoran data.

For landlords, this is the strongest pricing environment on record. For investors, record rents against 6.5% financing changes the math on what pencils. And for renters watching a studio average $4,014 a month, the rent versus buy question is no longer theoretical.

What this means

If you're selling: the record median is real, but so are the 95 days on market. Well priced properties are achieving strong results. Overpriced ones are sitting. The $2M to $4M band is the deepest pool of active buyers right now.

If you're buying: supply is your enemy, not rates. Rates are lower than last summer and prices set records anyway. Under $3 million, correctly priced new development is absorbing in about four months. The advantage is in buildings and units that have sat, not in waiting for the market to turn.

If you own investment property: rents are at all time highs and rental supply keeps shrinking. If you've been debating whether to sell or re-rent, the June rent data just made re-renting more interesting. Run both numbers before you decide.

Undivided tracks this data so our clients decide with evidence, not headlines. If you want the analysis run against your specific building or search, that's what we do.