From Fortune:

New York City’s housing market experienced a significant drop in sales in 2023 as a result of the highest mortgage rates in two decades, leading to challenges for both buyers and sellers. Even properties in the lower price ranges have been on the market for months. Despite this, median home prices have risen 7.6%.

The rental market has also gotten tighter and more expensive in 2023, limiting the options for many new buyers. This has created a difficult moment to enter the market due to both the high cost of financing and rental prices. The situation is largely driven by a supply and demand issue.

Mortgage rates are expected to ease but likely won’t return to 2021 levels. The interest rate environment is expected to continue being an inhibitor in 2024, leading to a predicted slowdown in the market especially during the second half of the year. Lower mortgage rates would encourage more people to re-enter the housing market, but it won’t make a meaningful difference.



Read more: New York City real estate moved slow in 2023—and 2024 isn’t shaping up to be better