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**Free-Market Buildings Led NYC Apartment Sales in 2025**
New York City’s multifamily real estate market in 2025 saw a modest increase in transactional activity, with the number of sales rising 4% year-over-year to a total of 1,188 trades. Despite the uptick in volume, the total dollar amount of these transactions dipped slightly to $8.91 billion, down from $9.1 billion in 2024, according to Ariel Property Advisors’ “Multifamily Year in Review New York City 2025.”
Free-market buildings dominated the market, accounting for 66% of the total dollar volume and 48% of all multifamily transactions across the city. These assets continued to attract significant investor interest, underpinned by growing valuations.
Trailing in overall value but close in transaction frequency were rent-stabilized properties, representing 47% of deals yet only 20% of the dollar volume. Affordable housing rounded out the market share with 13% of dollar volume and 6% of total transactions.
“In 2025, the numbers tell the story,” said Shimon Shkury, president and founder of Ariel Property Advisors. “Capital rewarded free-market housing with rising valuations. Affordable housing remained active through strong public-private alignment, while rent-stabilized assets traded at steep discounts as net operating income eroded under policy and cost pressures.”
The rent-stabilized sector continued to face significant challenges due to ongoing regulatory burdens, increased operational costs, and elevated mortgage rates. Since the implementation of the Housing Stability and Tenant Protection Act of 2019, average price per unit in rent-stabilized properties has declined across all submarkets—some by as much as 70% to 90%.
The market trends from 2025 reflect a clear investor preference for free-market assets amidst evolving regulatory and economic conditions.
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