Have Manhattan Real Estate Prices Bottomed?

June 23, 2026 - 02:50

After nearly a decade of ups and downs, Manhattan's luxury real estate market has reached a turning point. Condo prices, which peaked in 2017 before entering a prolonged slump, have now climbed back to record levels. New data from the first quarter of 2026 shows that the average price per square foot for Manhattan condos has surpassed the previous 2017 high, signaling a full recovery for the high-end market.

The correction that began in 2018 and deepened through the pandemic years saw prices drop by as much as 15 percent from the peak. Many investors and developers worried that the market would never regain its former strength. But a combination of factors has driven the rebound. Low inventory, steady demand from both domestic buyers and international investors, and a shift in buyer preferences toward larger units with home office space have all pushed prices higher.

For global buyers, the current market presents a mixed picture. Prices are at record levels, but the U.S. dollar's strength against many foreign currencies has made Manhattan real estate more expensive for overseas investors. Meanwhile, domestic buyers face higher mortgage rates than in recent years, which has slowed the pace of sales even as prices rise.

Real estate analysts caution that the market may not see the same rapid gains as before. The new record highs are more a reflection of limited supply than of booming demand. Still, for those who bought during the 2020-2022 correction, the returns have been substantial. Whether this marks a true bottom or just a plateau remains to be seen, but for now, Manhattan condos are back at the top.