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New York Property Market Update — May 2026

The CityDataLab factor model for New York, fit on NYC Department of Finance transaction data through January 2026, shows a market still up year-on-year but cooling into early 2026. The quality-adjusted Baseline Market rose +5.3% over the twelve months to January, yet contracted -2.2% over the most recent three-month window (October 2025 → January 2026). Underneath the headline, the elevator-building premium did most of the recent work — and the small-building / walk-up segment continued its multi-year drag.

The headline: positive year, negative quarter

Baseline Market — the hedonic intercept, i.e. the price level for a constant-quality unit — is now +104.3% above its 2016 starting point. That cumulative figure flatters a noisy recent path: October 2025 through January 2026 erased 2.2% after a strong summer. This is the cleanest single read on Manhattan-and-outer-boroughs pricing once we strip out shifts in building age, size, location score, and unit count.

Elevator buildings drove the year, walk-ups dragged

The most striking factor move is Elevator Building, which returned +5.3% year-on-year and +5.2% in the last three months alone — essentially all of that factor's 2025 work happened in Q4. In a market where the Baseline is softening, the elevator premium widening tells you buyers are paying up specifically for the doorman/elevator product type relative to walk-ups.

Working the other direction, Residential Units (log) — which captures pricing in larger multi-unit buildings versus smaller ones — fell -4.6% over twelve months and is now -17.8% cumulatively since 2016. Larger residential buildings continue to price at a structural discount per square unit, a pattern visible since the 2020-2021 cycle.

Age, tier, and location: small but consistent

Building Age returned -1.7% YoY and -1.9% in the last three months — older stock losing a sliver of its premium each quarter. Large Building added +1.3% YoY (and +1.1% in Q4 alone). Location Premium and Price Tier are both essentially flat year-on-year (+0.0% and +0.1%), which is itself informative: the geographic and tier dispersion that opened up in 2021-2023 has stopped widening.

Factor12-month return3-month returnInterpretation
Baseline Market+5.3%-2.2%Quality-adjusted price level — positive year, soft quarter.
Elevator Building+5.3%+5.2%Doorman/elevator premium widening sharply in Q4 2025.
Residential Units (log)-4.6%-0.6%Larger multi-unit buildings still discounted.
Building Age-1.7%-1.9%Older stock losing a touch of its premium.
Large Building+1.3%+1.1%Large-footprint buildings firming modestly.
High-rise Building-0.4%-0.2%High-rise factor flat-to-soft, distinct from elevator premium.
Location Premium+0.0%+0.1%Geographic dispersion stable.

Cumulative factor paths since 2019

The chart below shows cumulative returns for the six most active small-magnitude factors, rebased to 0% in February 2019. Note how Elevator Building is the standout 2025 mover.

What to watch into mid-2026

Two threads matter for the next print. First, whether the Elevator Building Q4 surge persists or mean-reverts — a +5.2% three-month move on a factor that has spent years oscillating around zero is unusually large. Second, whether the Baseline Market -2.2% three-month figure deepens or stabilises, given the last two to three months of any rolling-window estimate are inherently noisy and should be weighed accordingly.

See the full factor model

Interactive charts for every factor, updated monthly.

Open New York Factors →

Methodology: monthly cross-sectional OLS of log(price/sqm) on property characteristics over a rolling 3-month window, fit on NYC Department of Finance transaction data from 2016. Full details on the methodology page.