NYC Home Listings Surge to Four-Year High Amid Rising Mortgage Rates

New York City experienced its most significant wave of homes hitting the market in four years during September, with 4,951 properties listed for sale across the five boroughs. This represents a 7.6% increase compared to the same period last year, according to a report by StreetEasy.

This surge in new listings is attributed to homeowners looking to take advantage of a market characterized by strong buyer competition and limited inventory, even as mortgage rates continue to climb. Kenny Lee, senior economist at StreetEasy, noted that sellers are "running to take advantage of a market where buyer competition is still hot and inventory is still tight." He added that "even with mortgage rates climbing, more than one in five homes sold above asking in September, so sellers see a window and are moving."

The national 30-year fixed mortgage rate surpassed 7% in late September and reached an average of 7.28% in early October, a notable increase from approximately 6.3% a year prior, according to Freddie Mac data. This rise in borrowing costs is beginning to affect buyer activity.

Citywide, signed contracts for home sales decreased by 5.4% in September, totaling 1,528. Manhattan saw a 6.8% drop to 660 contracts, while Brooklyn experienced an 11.5% decline to 415. Properties are also remaining on the market longer, with the typical home now taking 88 days to sell, an increase of two weeks compared to the previous fall. The citywide median asking price also saw a slight decrease of 5.2%, settling at $995,000.

Queens emerged as a bright spot in the market, with contracts increasing by 9.3% to 353, largely driven by a 12.4% rise in co-op deals. Despite the increased number of listings, overall housing inventory in the city dropped by 4.9% to 16,737 homes, continuing a downward trend observed throughout 2026.

Long Island City recorded the most significant increase in new listings, with a 205.4% surge to 113 homes, fueled by the opening of sales for several new developments. The median asking price in this neighborhood was $1.14 million. The Flatiron District followed with 99 new listings, a 67.8% increase, and a median asking price of $2.725 million. Tribeca added 81 new listings, up 30.7%, with a median ask of $5.1 million.

In more affordable areas, Washington Heights saw a 42.1% increase in listings to 54 homes, with a median price of $539,500. Astoria's listings grew by 28.4% to 95 homes at a median of $999,000, and Williamsburg added 109 listings, up 26.7%, at a median of $1.45 million. The Upper East Side remained the largest market by volume, with 603 new listings, a 17.5% increase.

Within Manhattan, a substantial portion of the new listings came from resale condos, which surged by 15.8% to 1,054. In contrast, new sponsor units decreased by 18% to 155, indicating a slowdown in new condominium construction.

"While neighborhoods like Long Island City saw surges in new listings driven by new development launches, the pipeline of new developments across the city is starting to dry up," Lee stated. "That means that many neighborhoods, like the Flatiron District, are seeing jumps in new listings primarily from condo owners cashing in on resilient demand for resale condos."

The rental market also experienced a significant tightening. Rental inventory fell by 15.3% to 29,029 units, the sharpest annual decline in four years. The median asking rent in Manhattan remained stable at $4,995, an 8% increase from the previous year. Brooklyn's rental supply decreased by 18.4%, with its median rent climbing to $3,945, while Queens reached a median rent of $3,400.