The average price for residential real estate in Manhattan, New York increased for luxury, new developments, and condos. Conversely, prices for re-sale and co-op properties declined slightly. In the third quarter of 2024, the average square footage price for a re-sale property was 1,404 U.S. dollars per square foot.

In 2024, the average square footage price of condos and new development condos in Brooklyn, NY declined slightly. Prices of one-to-three family homes, on the other hand, increased from 635 U.S. dollars per square foot in the third quarter of 2023 to 795 U.S. dollars in the third quarter of 2024.

Graph and download economic data for Housing Inventory: Median Listing Price per Square Feet in New York (MEDLISPRIPERSQUFEENY) from Jul 2016 to May 2025 about square feet, NY, listing, median, price, and USA.

Between 2020 and 2022, the average square footage price of one-to-three family homes in Queens, New York increased. Existing condo prices, on the other hand, fell from 1,084 U.S. dollars per square foot in the third quarter of 2020 to 844 U.S. dollars per square foot in the third quarter of 2022.

The average asking rent for Class A office space in Midtown Manhattan was 82.74 U.S. dollars per square foot in the first quarter of 2024. It was above the Manhattan average of 80.38 U.S. dollars, but below that of Midtown South, which was the most expensive district at 103.42 U.S. dollars per square foot. What is Class A real estate?Class A real estate refers to the best properties in terms of appearance, age, quality of infrastructure and location. These properties usually command the highest rental rates, due to their high quality. In the U.S., Manhattan has the most expensive rents for Class A offices.Midtown vs Midtown SouthMidtown Manhattan contains the Empire State Building, MoMA, Grand Central Station, and the United Nations Headquarters. The most expensive submarket there was Plaza District in 2024. Meanwhile, Midtown South is home to Madison Square Garden, Pennsylvania Station, Hudson Yards, and Koreatown. In 2024, the most expensive submarket there was Hudson Yards, followed by Chelsea and Hudson Square.

The average Class B asking rent for office real estate in Manhattan in the fourth quarter of 2023 was 67.81 U.S. dollars per square foot. The district that reported the highest average Class B rent was Midtown South, where a square foot of space cost 74.02 U.S. dollars. Between the fourth quarter of 2022 and the fourth quarter of 2023, rents in Midtown South increased, while in Midtown and Downtown, they declined.

The average price per square foot of floor space in new single-family housing in the United States decreased after the great financial crisis, followed by several years of stagnation. Since 2012, the price has continuously risen, hitting 168 U.S. dollars per square foot in 2022. In 2024, the average sales price of a new home exceeded 500,000 U.S. dollars. Development of house sales in the U.S. One of the reasons for rising property prices is the gradual growth of house sales between 2011 and 2020. This period was marked by the gradual recovery following the subprime mortgage crisis and a growing housing sentiment. Another significant factor for the housing demand was the growing number of new household formations each year. Despite this trend, housing transactions plummeted in 2021, amid soaring prices and borrowing costs. In 2021, the average construction cost for single-family housing rose by nearly 12 percent year-on-year, and in 2022, the increase was even higher, at close to 17 percent. Financing a house purchase Mortgage interest rates in the U.S. rose dramatically in 2022 and remained elevated until 2024. In 2020, a homebuyer could lock in a 30-year fixed interest rate of under three percent, whereas in 2024, the average rate for the same mortgage type was more than twice higher. That has led to a decline in homebuyer sentiment, and an increasing share of the population pessimistic about buying a home in the current market.

The United States home construction market, valued at approximately $700 billion in 2025, is experiencing robust growth, projected to maintain a compound annual growth rate (CAGR) exceeding 3% through 2033. This expansion is fueled by several key factors. Firstly, a persistent housing shortage, particularly in desirable urban areas like New York City, Los Angeles, and San Francisco, continues to drive demand. Secondly, favorable demographic trends, including millennial household formation and an increasing preference for homeownership, are bolstering the sector. Furthermore, low interest rates (though this is subject to change depending on economic conditions) have historically made mortgages more accessible, stimulating construction activity. However, the market isn't without its challenges. Rising material costs, labor shortages, and supply chain disruptions continue to exert upward pressure on construction prices, potentially impacting affordability and slowing growth in certain segments. The market is segmented by dwelling type (apartments & condominiums, villas, other), construction type (new construction, renovation), and geographic location, with significant activity concentrated in major metropolitan areas. The dominance of large national builders like D.R. Horton, Lennar Corp, and PulteGroup highlights the industry's consolidation trend, while the growth of multi-family construction reflects shifting urban preferences. Looking ahead, the market's trajectory will depend on macroeconomic factors, interest rate fluctuations, government policies impacting housing affordability, and the ability of the industry to address supply-chain and labor challenges. Innovation in construction technologies, sustainable building practices, and prefabricated homes are also emerging trends expected to significantly influence market dynamics over the forecast period. The competitive landscape is characterized by a mix of large publicly traded companies and smaller regional builders. While established players dominate the market share, opportunities exist for smaller firms specializing in niche markets, such as sustainable or luxury home construction, or those focused on specific geographic areas. The ongoing expansion of the market signifies significant potential for investment and growth, despite the hurdles currently impacting the sector. Addressing supply chain disruptions and labor shortages will be crucial for sustained growth. Continued demand in key urban centers and evolving consumer preferences toward specific dwelling types will be critical factors determining the market's future trajectory. Recent developments include: June 2022 - Pulte Homes - a national brand of PulteGroup, Inc. - announced the opening of its newest Boston-area community, Woodland Hill. Offering 46 new construction single-family homes in the charming town of Grafton, the community is conveniently located near schools, dining, and entertainment, with the Massachusetts Bay Transportation Authority commuter rail less than a mile away. The collection of home designs at Woodland Hill includes three two-story floor plans, ranging in size from 3,013 to 4,019 sq. ft. with four to six bedrooms, 2.5-3.5 baths, and 2-3 car garages. These spacious home designs feature flexible living spaces, plenty of natural light, gas fireplaces, and the signature Pulte Planning Center®, a unique multi-use workstation perfect for homework or a family office., December 2022 - D.R. Horton, Inc. announced the acquisition of Riggins Custom Homes, one of the largest builders in Northwest Arkansas. The homebuilding assets of Riggins Custom Homes and related entities (Riggins) acquired include approximately 3,000 lots, 170 homes in inventory, and 173 homes in the sales order backlog. For the trailing twelve months ended November 30, 2022, Riggins closed 153 homes (USD 48 million in revenue) with an average home size of approximately 1,925 square feet and an average sales price of USD 313,600. D.R. Horton expects to pay approximately USD 107 million in cash for the purchase, and the Company plans to combine the Riggins operations with the current D.R. Horton platform in Northwest Arkansas.. Notable trends are: High-interest Rates are Negatively Impacting the Market.

The United States home construction market, currently experiencing robust growth with a CAGR exceeding 3%, presents a significant investment opportunity. The market's size in 2025 is estimated at $XX million (replace XX with a reasonable estimate based on available data, perhaps referencing similar reports or industry publications to justify the estimate), fueled by several key drivers. Strong population growth, particularly in urban centers like New York City, Los Angeles, and San Francisco, consistently demands new housing. Furthermore, low interest rates (at the time of data collection) and government initiatives aimed at boosting homeownership have stimulated demand. The market is segmented by dwelling type (apartments, condominiums, villas, others), construction type (new construction and renovation), and geographic location, reflecting varying market dynamics across different regions. The segment of new construction within the multi-family sector, driven by companies such as Alliance Residential, Greystar Worldwide, and The NRP Group, shows particularly strong potential. Conversely, the market faces challenges from rising material costs, labor shortages, and regulatory hurdles impacting both new construction and renovation projects. These constraints, although influencing growth, haven’t significantly dampened the overall positive trajectory of the market. Looking towards the future, the market’s continued growth depends on several factors, including sustained economic growth, effective policy responses to material cost inflation and skilled labor shortages, and the continued demand for housing in high-growth urban areas. The forecast period (2025-2033) predicts considerable expansion, offering considerable opportunities for established players and new entrants. The competitive landscape is characterized by a mix of large national builders such as D.R. Horton, Lennar Corp, and PulteGroup, and regional players focused on specific markets. These companies cater to diverse segments, from single-family homes to multi-family units, and exhibit varying degrees of specialization in terms of construction type and property type. The success of individual players within this competitive market hinges on factors including effective land acquisition strategies, the capacity to navigate material cost fluctuations, efficient construction processes, and a keen understanding of shifting consumer preferences in different geographical areas. Successful companies are adept at adapting to evolving market conditions, adopting sustainable construction practices and leveraging technological advancements to optimize efficiency and reduce costs. Given the significant growth forecast and the diverse player landscape, strategic partnerships, mergers and acquisitions, and innovations in construction technology are likely to shape the future of this dynamic sector. Recent developments include: June 2022 - Pulte Homes - a national brand of PulteGroup, Inc. - announced the opening of its newest Boston-area community, Woodland Hill. Offering 46 new construction single-family homes in the charming town of Grafton, the community is conveniently located near schools, dining, and entertainment, with the Massachusetts Bay Transportation Authority commuter rail less than a mile away. The collection of home designs at Woodland Hill includes three two-story floor plans, ranging in size from 3,013 to 4,019 sq. ft. with four to six bedrooms, 2.5-3.5 baths, and 2-3 car garages. These spacious home designs feature flexible living spaces, plenty of natural light, gas fireplaces, and the signature Pulte Planning Center®, a unique multi-use workstation perfect for homework or a family office., December 2022 - D.R. Horton, Inc. announced the acquisition of Riggins Custom Homes, one of the largest builders in Northwest Arkansas. The homebuilding assets of Riggins Custom Homes and related entities (Riggins) acquired include approximately 3,000 lots, 170 homes in inventory, and 173 homes in the sales order backlog. For the trailing twelve months ended November 30, 2022, Riggins closed 153 homes (USD 48 million in revenue) with an average home size of approximately 1,925 square feet and an average sales price of USD 313,600. D.R. Horton expects to pay approximately USD 107 million in cash for the purchase, and the Company plans to combine the Riggins operations with the current D.R. Horton platform in Northwest Arkansas.. Key drivers for this market are: Indonesia's Hospitality Market Shifting Preference for Local and Authentic Experiences. Potential restraints include: Difficulties in Implementing Tourism Policies. Notable trends are: High-interest Rates are Negatively Impacting the Market.

New York had one of the highest construction costs for prime offices in the United States, at over 660 U.S. dollars per square foot on average. In addition to the 541-meter One World Trade Center building, New York City also has some of the tallest skyscrapers in the United States. What element affect construction costs? Location and topography have a big impact on construction costs, for example, earthquake-prone zones have more stringent building requirements which will affect cost of materials, supplies, and labor. Increased interest in sustainability has also prompted sustainable certification across the country, most noticeably as LEED-registered offices. Slow growth of the office construction segmentThe value of new private office construction in the U.S. has kept rising in the past years, but at a slower rate than before 2019. The changes in the way people work, with part of the workforce working from home at least part of their week might have hindered investment in office real estate.

In the first quarter of 2025, San Francisco, Chicago, New York, and Honolulu were some of the U.S. cities with the highest housing construction costs. Meanwhile, Phoenix had one of the lowest construction costs for high-end multifamily homes at 190 U.S. dollars per square foot and Las Vegas for single-family homes between 240 and 480 U.S. dollars per square foot. Construction cost disparities As seen here, the construction cost for a high-end multi-family home in San Francisco in the first quarter of 2024 was over twice more expensive than in Phoenix. Meanwhile, there were also great differences in the cost of building a single-family house in New York and in Portland or Seattle. Some factors that may cause these disparities are the construction materials, installation, and composite costs, differing land values, wages, etc. For example, although the price of construction materials in the U.S. was rising at a slower level than in 2022 and 2023, several materials that are essential in most construction projects had growth rates of over five percent in 2024. Growing industry revenue Despite the economic uncertainty and other challenges, the size of the private construction market in the U.S. rose during the past years. It is important to consider that supply and demand for housing influences the revenue of this segment of the construction market. On the supply side, single-family home construction fell in 2023, but it is expected to rise in 2024 and 2025. On the demand side, some of the U.S. metropolitan areas with the highest sale prices of single-family homes were located in California, with San Jose-Sunnyvale-Santa Clara at the top of the ranking.

Home of the New York Stock Exchange, Times Square, the Theater District, and countless other landmarks, Manhattan is undoubtedly among the most expensive commercial real estate markets in the United States. On 5th Ave (49th St. - 59th St.), the annual asking rent of retail space reached 2,750 U.S. dollars per square foot in the first half of 2023. Broadway & 7th Ave (42nd St. - 47th St.) had the second highest rent among Manhattan corridors, with a median asking rent of 980 U.S. dollars.

Mechanical, plumbing, fire protection was the most expensive cost category in a complete office fit-out in New York City in 2023. The square foot cost of an office fit-out was approximately 213 U.S. dollars, with the mechanical, plumbing, and fire protection works comprising about one-fifth of the total cost. In the U.S., New York City was the market with the third-highest fit out cost for offices, after San Jose and San Francisco.

The average annual rent for manufacturing space in New York City Metro has soared since 2017. In the first quarter of 2024, the rental cost amounted to nearly 14.91 U.S. dollars per square foot. That was higher than the average rent for manufacturing space in the United States.

Annual office occupancy costs in the Americas were highest in Manhattan in New York City where they reached over 169 U.S. dollars per square foot in the second quarter of 2021. Occupancy costs include service charges and taxes, and are also known as gross rents in the United States. In the same period, office occupancy costs amounted to 23.59 U.S. dollars per square foot per year in Rio De Janerio, Brazil which was the lowest recorded in the range in this category.

Brooklyn is the most populous and densely populated county in New York, as well as among one of the most expensive real estate markets in the United States. In the second half of 2023, the average annual asking rent of retail real estate in different corridors in Brooklyn varied between 44 and 275 U.S. dollars per square foot. North Sixth Street (Driggs Ave - Kent Ave) was the most expensive corridor, with an average square footage rent of 275 U.S. dollars.