What will the housing market look like in 2026? After years of rollercoaster conditions marked by bidding wars, rate spikes, and inventory shortages, the NYC housing market and New Jersey real estate sectors are settling into a more balanced rhythm.
This guide breaks down what to expect from the housing market in 2026 across our four service areas: Staten Island, Brooklyn, Manhattan, and New Jersey. We cover mortgage rate trends, inventory projections, and price appreciation expectations with actionable insights for both buyers and sellers.
Regional Market Drivers for 2026
Before diving into market-specific predictions, here are the key forces shaping the NYC housing market predictions 2026 and New Jersey real estate forecast 2026:
Mortgage Rate Outlook
| Forecast Source | 2026 Prediction |
|---|---|
| Redfin | 6.3% average (30-year fixed) |
| Realtor.com | 6.3% average |
| Zillow | Above 6% for year |
What this means: Rates have dropped from 2025 peaks but remain elevated compared to the sub-3% levels of 2021. The Federal Reserve’s gradual rate cuts signal continued modest easing, which should encourage more buyers back into the market.
Inventory Trends
- NYC: New listings reached their highest level since 2022 in late 2025
- New Jersey: 10.6% year-over-year increase in homes for sale
- Both markets: Still hovering at 3-4 months of supply (below the 6-7 months considered “balanced”)
Price Growth Expectations
| Market | 2026 Price Growth Forecast |
|---|---|
| NYC Overall | 4-6% |
| Staten Island | 3-4% |
| Brooklyn | 4-6% |
| Manhattan | 4-6% |
| New Jersey | 1-3% |
Staten Island Housing Market 2026
Staten Island enters 2026 as one of the most affordable boroughs in New York City, with continued appreciation expected.
Current Market Snapshot
| Metric | Value (Late 2025) |
|---|---|
| Median Sale Price | $757,000 |
| YoY Price Change | +4-5% |
| Days on Market | 45-55 |
| Inventory Status | Constrained |
2026 Projections
Median Price Forecast: $779,000 – $787,000 (+3-4%)
Days on Market Expectation: 40-50 days as inventory improves slightly
Key Drivers:
- Ongoing inventory deficit creating a “price floor”
- Strong demand from first-time buyers priced out of other boroughs
- Continued appeal of single-family homes and suburban feel
Staten Island: Buyer vs. Seller Timing
For Buyers:
- Best window: Late winter to early spring (February-April) when inventory builds
- Strategy: Get pre-approved now. Properties under $700K face the most competition
- Watch neighborhoods: Great Kills, Tottenville, and New Dorp offer strong value
For Sellers:
- Best window: April-June before summer slowdown
- Strategy: Price realistically. Overpriced homes sit while properly priced homes still attract multiple offers
- Tip: Well-presented homes in move-in condition command premium pricing
Brooklyn Housing Market 2026
Brooklyn remains the most competitive borough, with the median sale price crossing $1 million for the first time in 2025.
Current Market Snapshot
| Metric | Value (Late 2025) |
|---|---|
| Median Sale Price | $998,000 |
| Median Price/Sqft | $1,019 |
| YoY PPSF Change | +6.4% |
| Sales Above Asking | 22% |
2026 Projections
Median Price Forecast: $1,038,000 – $1,058,000 (+4-6%)
Days on Market Expectation: 65-80 days
Key Drivers:
- Limited inventory in prime neighborhoods (Brooklyn Heights, Park Slope)
- Strong rental market pushing buyers toward ownership
- New construction in Williamsburg and Downtown Brooklyn adding supply
Brooklyn: Buyer vs. Seller Timing
For Buyers:
- Best window: January-March before spring competition heats up
- Strategy: Consider emerging neighborhoods like Crown Heights and Bedford-Stuyvesant for better value
- Watch: If mortgage rates stabilize in low 6s, inventory should improve
For Sellers:
- Best window: Late April through June
- Strategy: 22% of Brooklyn sales closed above asking in 2025. Well-priced, move-in ready properties still generate competitive offers
- Tip: Staging and professional photography remain critical in this market
Manhattan Housing Market 2026
Manhattan is poised for solid sales volume in 2026, with prices stabilizing after several years of significant growth.
Current Market Snapshot
| Metric | Value (October 2025) |
|---|---|
| Median Sale Price | $1,240,000 |
| YoY Price Change | +3% |
| Inventory Status | Constrained (resale market) |
2026 Projections
Median Price Forecast: $1,290,000 – $1,310,000 (+4-6%)
Days on Market Expectation: 70-90 days
Key Drivers:
- Sales volume expected to reach highest levels since 2022
- Growing buyer and seller confidence
- Moderating prices encouraging sidelined buyers to re-enter
Manhattan: Buyer vs. Seller Timing
For Buyers:
- Best window: Q1 2026 before sales volume peaks
- Strategy: Broad price declines are unlikely. Focus on well-priced listings rather than waiting for a crash
- Watch: New development inventory may offer better negotiating opportunities than resale
For Sellers:
- Best window: Spring 2026 as buyer confidence grows
- Strategy: The market rewards realistic pricing. Properties priced at market value move quickly; overpriced listings sit
- Tip: This is a “competition story” not a “price correction” story. Position accordingly
New Jersey Housing Market 2026
The New Jersey real estate market is normalizing after years of extreme fluctuations, creating a more balanced environment.
Current Market Snapshot
| Metric | Value (Late 2025) |
|---|---|
| Average Home Value | $556,462 |
| YoY Price Change | +3% |
| Inventory Growth | +10.6% |
| Market Type | Normalizing |
2026 Projections
Average Price Forecast: $567,000 – $573,000 (+1-3%)
Days on Market Expectation: 35-50 days
Key Drivers:
- Inventory slowly recovering but still below pre-pandemic levels
- High-demand towns (Hoboken, Jersey City) seeing stronger appreciation
- Areas with rapid pandemic-era growth may see flatter performance
New Jersey: Buyer vs. Seller Timing
For Buyers:
- Best window: Late winter 2026 as inventory builds
- Strategy: More choices and negotiating power compared to past years. Don’t rush, but don’t expect deep discounts
- Watch areas: Northern New Jersey remains competitive due to limited land. Consider Bayonne for value
For Sellers:
- Best window: Spring 2026 (April-June)
- Strategy: Well-positioned, realistically priced homes continue to perform well
- Tip: The days of instant multiple offers are fading. Prepare for 30-45 days on market as the new normal
What to Expect From the Housing Market 2026: Key Takeaways
For Buyers
- Don’t wait for a crash. Price corrections are unlikely in NYC and NJ. Limited inventory supports prices even with higher rates.
- Act in Q1. Late winter through early spring offers the best combination of building inventory and less competition.
- Get pre-approved now. With mortgage rates around 6.3%, locking in early gives you certainty and strengthens your offers.
- Consider outer boroughs and NJ suburbs. Staten Island and Northern NJ offer significantly lower entry points than Brooklyn and Manhattan.
- Review our home buying process timeline to prepare for spring.
For Sellers
- Price realistically. The market no longer tolerates aspirational pricing. Well-priced homes sell; overpriced homes sit.
- Spring remains optimal. April through June generates the highest buyer traffic and strongest offers.
- Invest in presentation. Staging, professional photography, and move-in condition differentiate your listing.
- Expect 40-60 days. The instant-sale market of 2021-2022 is over. Build realistic timelines.
- Read our guide on selling your home for preparation tips.
2026 Housing Market Predictions Summary Table
| Market | 2025 Median | 2026 Projection | Growth | Best Time to Buy | Best Time to Sell |
|---|---|---|---|---|---|
| Staten Island | $757,000 | $779K-$787K | 3-4% | Feb-Apr | Apr-Jun |
| Brooklyn | $998,000 | $1.03M-$1.06M | 4-6% | Jan-Mar | Apr-Jun |
| Manhattan | $1,240,000 | $1.29M-$1.31M | 4-6% | Q1 2026 | Spring 2026 |
| New Jersey | $556,462 | $567K-$573K | 1-3% | Late Winter | Apr-Jun |
Start Your 2026 Home Search
Ready to make your move? Browse current listings across our service areas:
- Homes for sale in Staten Island →
- Homes for sale in Brooklyn →
- Homes for sale in Manhattan →
- Homes for sale in New Jersey →
Related Resources
- First-Time Homebuyer Guide
- Home Buying Process Timeline
- NYC School District Rankings and Home Values
- Buying a Home in a Flood Zone
Contact Our Team for Personalized Guidance →
Data sources: Redfin, Zillow, Realtor.com, StreetEasy, Brown Harris Stevens. Market data current as of January 2026. Projections based on current trends and expert forecasts; actual results may vary.