One in three condos are selling at a loss in major US city – as cracks begin to form in housing market

By MARTHA WILLIAMS, US NEWS REPORTER

Published: 23:37 EST, 9 November 2025 | Updated: 23:37 EST, 9 November 2025

Condo sellers in New York City have taken major hits this year as the housing market continues to show warning signs. 

A report published by real estate firm Brown Harris Stevens analyzed over 2,500 Manhattan condo resales from July 2024 to July 2025.

The findings revealed that one in three of those units were sold at a loss. 

Despite Manhattan still being among the most expensive real estate markets in the US, the median price per square foot for condos is essentially flat from a decade ago, according to the report.

When including inflation, transaction costs and renovations, the share of losses by condo sellers is likely even higher, according to CNBC. 

‘I don’t think the public is completely aware of the fact that housing prices in Manhattan for the last decade have been relatively flat,’ said report author Jonathan Miller. 

Sellers that fared the worst over the year to July 2025 were those who snapped up condos between 2016 and 2020, with more than half of those properties suffering a loss.

By contrast, most units purchased before 2010 and sold in that same period did see price increases. The 700 surveyed sellers who bought their condos before 2010 mostly saw their homes appreciate in value.

One in three condos sold were at a loss according to a recent study 

From 2016 to 2024 the average price per square foot for Manhattan condos fell by about 4 percent, according to Miller Samuel report for Douglas Elliman.

A possible explanation for these worrying numbers is that buyers in the 2016 to 2020 era were too eager to close the deal and overpaid for condos. 

This rush to buy came after a ‘super-normal growth period’ — a time when prices rise much faster than usual — which took place from 2013 to 2015. 

Timing is a major factor here. Those who entered early (pre-2010) were more likely to have made gains in recent sales, while those entering during the mid-2010s faced tougher odds of positive returns.

The message to buyers here is that they should not assume that prices in Manhattan will automatically go up just because the city as a whole is growing more expensive.

What this means for New York City’s housing market is that the property market is under pressure — demand has softened, prices are adjusting, and speculative gains are less reliable. 

Meanwhile, what the data indicates for the greater US economy is that wealthy buyers are becoming more cautious — often a sign of uncertainty or shifting investment priorities.

Luxury buyers were relatively unscathed by economic trends, but 20 percent of the surveyed sales over $10 million were still at a loss.

Condo sellers that have fared the worst this year were those who snapped up condos between 2016 and 2020

New York City’s property market is under pressure – demand has softened, prices are adjusting, and speculative gains are less reliable

Luxury buyers were relatively unscathed by economic trends

Jared Antin, Brown Harris Stevens managing director 

Manhattan’s richest residents have been knocked down several times over the past decade.

A 2017 cap on state and local tax deductions and the updated city’s mansion tax passed in 2019 imposed steeper costs for high-end homebuyers. 

‘You’re rich and you’re buying because you want it,’ Brown Harris Stevens managing director Jared Antin told the Real Deal. ‘You don’t really care about what’s happening around you.’ 

New York City’s current situation is raising questions as to whether it is heading toward a condo crisis akin to what is going on in many major cities in Florida. 

In both New York City and Florida metros such as Miami and Tampa, many buyers bought units during a boom in high prices.

Now, sellers are having a hard time fetching the same steep sum. 

This is particularly problematic in Florida because, after seeing an increased demand for condos, builders overdeveloped and created way more supply than there was demand for.

Soaring Homeowners Association (HOA) and insurance fees are also a major issue, scaring off prospective buyers. 

New York is not there yet, but there are certainly more luxury developments than needed.  

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One in three condos are selling at a loss in major US city – as cracks begin to form in housing market