Brooklyn Market Pulse ¹ September 2026

MEDIAN SALE PRICE BY BEDROOM, ALL BROOKLYN (SEPTEMBER, BY CLOSED DATE)

Brooklyn Tilts Toward Buyers as Listings Return

September brought sellers back. Active listings rose 17% in a month and are now 4% above last year, as new listings nearly doubled. Contracts held steady month to month but were 13% below last September. Pricing softened at the margin: the median sale price dipped to $1.12M, still 4% higher than a year ago, and price per square foot fell 3% year over year. The listing discount stayed tight at 2.5%, the lowest in NYC.

Bottom line: more choice and flat per-foot pricing give buyers their best footing of 2026. Well-priced homes still sell close to ask.

Market Snapshot: Five Numbers That Matter

• 3,762 active listings, up 17% in a month and 4% above last year.

• 431 contracts signed, flat on the month and 13% below last September.

• $1.12M median sale price, up 4% year over year.

• $1,059 median PPSF, down 3% from last year.

• 2.5% median listing discount, still the tightest in the city.

Key Takeaways

• Supply is rising faster than demand: months of inventory climbed to 4.0 from 3.6.

• Buyers are cautious, not gone: pending sales still run 4.5% above last year.

• By bedroom: condo 1BRs are down 15% on the year, while studios and large condos printed sharp gains on small samples.

Outlook

Brooklyn heads into the fall closer to balance than at any time this year. If rates stay high, expect per-foot pricing to stay flat and discounts to widen slowly.

For Sellers: The premium is shrinking. Price to recent per-foot comparables, not to the spring peak.

For Buyers: Your window is opening: more listings, longer days on market and a softer per-foot trend.

Howard Hanna NYC Brooklyn Leverage Index

The Howard Hanna NYC Brooklyn Leverage Index blends four signals, supply, demand, median PPSF and listing discount, into one reading of who holds the leverage. Tightening supply, rising demand, firming PPSF and shrinking discounts point to sellers; the reverse points to buyers.

The index fell to 0.40 from 0.73 in August, a second straight sharp drop and the lowest reading since January. Three of the four inputs point to buyers; only the tight listing discount still favors sellers. Brooklyn remains in equilibrium, now tilting toward buyers.

Brooklyn Supply

LISTINGS RETURN, NOW ABOVE LAST YEAR

Active listings rose to 3,762 in September, up 17% from August and 4% above last year, as 1,068 new listings came to market.

Buyers: The best selection since spring. Compare before you commit.

Sellers: More competition on the block. Make the first two weeks count.

Photo by Rihards Gederts | Howard Hanna NYC

Brooklyn Demand

CONTRACTS STEADY, BUT BELOW LAST YEAR

Buyers signed 431 contracts in September, up 2% from August and down 13% from last September. Pending sales still run 4.5% ahead of a year ago.

Buyers: Less bidding pressure than a year ago.

Sellers: Demand is there, but it is selective.

Brooklyn Median PPSF

PER-FOOT PRICING DIPS BELOW LAST YEAR

Median PPSF slipped to $1,059, down 1.5% from August and 3% from last year. The headline median is still up because larger homes are trading; the per-foot number shows the real trend.

Buyers: Negotiate on price per foot, not on the headline median.

Sellers: Anchor your price to per-foot comparables from the last 90 days.

Brooklyn Median Listing Discount

NEGOTIATING ROOM STILL THE TIGHTEST IN NYC

The median discount widened slightly to 2.5% from 2.2%. On a $1.1M listing, that is about $28,000. Homes that sit past 120 days negotiate much deeper, around 9%.

Buyers: Expect to pay close to ask for the best homes; push harder on stale listings.

Sellers: Price right and you still sell near ask.

Rental Remarks

RENTS FLAT NEAR RECORD, RENTERS STAY PUT

Brooklyn's median asking rent was $3,995 in August, up 4% on the year, per StreetEasy. Rental inventory fell 9% in a month, and Jonathan Miller's closed-lease data shows lease signings down sharply as tenants renewed. Price cuts edged up to 13% of listings.

For Renters: Renewing is often the better deal right now. If you move, look south and west of the park.

For Landlords: Demand is strong, but tenants are staying put. Price renewals to keep good tenants.

Cross-Check: Brooklyn Sales by Neighborhood (StreetEasy)

StreetEasy's August closings put the borough median at $1.19M. Boerum Hill ($3.35M), Borough Park ($2.50M) and Park Slope ($2.44M) lead among neighborhoods with eight or more sales; Brighton Beach ($430K) anchors the value end.

Mortgage Remarks

THE FED HIKES, THE 10-YEAR BREAKS 5%

The Fed raised rates on September 16 for the first time since 2023, to a 3.75%–4% range, and signaled one more hike this year. The bond market moved first and further: the 10-year Treasury, the benchmark lenders price jumbo loans against, closed September at 5.29%, its highest level since 2007. Freddie Mac's 30-year average crossed 7% (7.03% on September 24). Our jumbo APR tracker rose to 7.44% on October 1, up from 6.99% a month earlier and the highest reading since we began tracking in December 2023.

Buyers: Jumbo rates rose almost half a point in a month, about $150 more a month per $500K borrowed. Brooklyn buyers finance more, so lock a fresh rate before you shop.

Sellers: Financed buyers are the most rate-sensitive. Expect longer decisions below $1.5M.

Consumer Sentiment

CONSUMER CONFIDENCE FALLS AGAIN

The University of Michigan sentiment index fell to 48.1 in September, near its all-time low, as year-ahead inflation expectations rose to 4.6%. Higher is better; the long-run average is about 85.

Brooklyn buyers lean on mortgages more than Manhattan's, so weak confidence and 5% Treasuries show up here first: steady contracts, less urgency.

Buyers: Low-confidence months mean less competition. If your finances are ready, this is the time to move.

Sellers: Expect cautious buyers. Answer hesitation with comparables and clean disclosure, not with panic cuts.

Investor Insights

Domestic Investors and Yield

Brooklyn still offers the city's highest gross yields at a lower entry price than Manhattan. With the 10-year above 5%, focus on neighborhoods where rent covers more of the carrying cost.

The Investor Yield Map

Coney Island (8.8%) still tops the city, followed by Flatbush (6.5%) and Sheepshead Bay and Ditmas Park (6.3% each). Sunset Park, Boerum Hill and Carroll Gardens sit near 2%, pure appreciation plays.

Method: gross yield = annualized StreetEasy median asking rent ÷ median asking price, both August 2026, same source and stage. A screening measure before property taxes, common charges, insurance and vacancy, not a cap rate. Submarkets with fewer than 50 active rentals or 30 active sale listings excluded.

Pied-à-Terre Surcharge: Court Orders a Redo, the Tax Stays

On September 29, a Staten Island judge ruled that the city's rollout of the non-primary residence surcharge was flawed and ordered it to cancel the notices and start over with individual determinations. The tax itself was not struck down, and the city appealed immediately, which pauses the order while the appeal is heard.

In practice, little changes for owners yet. The surcharge still applies to non-primary condos and co-ops with a Department of Finance value of $1 million or more. The exemption deadline is October 6, and any surcharge would first appear on the January 1, 2027 tax bill.

For Owners: If you received a notice, keep responding as instructed while the appeal runs. Do not assume the ruling cancels your obligation.

For Buyers and Investors: Underwrite the surcharge on any non-primary purchase. A unit with a full-time tenant is exempt; an empty pied-à-terre is not.

This is market information, not tax or legal advice. Howard Hanna NYC can tell you what your apartment would rent for and sell for today; your advisors should drive the exemption decision.

The Brooklyn PPSF Story

Brooklyn's median PPSF has climbed for a decade to a sustained range above $1,000. September's $1,059 shows the climb has paused, not reversed.

References

1. Sales and pricing data (supply, demand, PPSF, listing discount, median sale price, days on market, price cuts, Market Pulse) and Leverage Index inputs: UrbanDigs, September 2026 actuals.

2. Bedroom-level median sale price: UrbanDigs Charts Room, 5-year monthly series, by closed date, September 2026.

3. Rental data (asking rent, inventory, discount share, neighborhood table) and gross rental yield inputs: StreetEasy Market Data, August 2026 release.

4. Sales by neighborhood: StreetEasy Market Data, August 2026 release (median closed sale price, recorded sales volume).

5. Closed-lease rental data: The Real Deal Rental Report by Jonathan Miller, August 2026.

6. Mortgage rates: Howard Hanna NYC jumbo APR tracker (Bank of America, Chase, Wells Fargo), October 1, 2026; Freddie Mac Primary Mortgage Market Survey, September 24, 2026; Optimal Blue 30-Year Fixed Rate Jumbo Mortgage Index via FRED.

7. Federal Reserve policy: FOMC statement, September 16, 2026. https://www.federalreserve.gov/newsevents/pressreleases/monetary20260916a.htm

8. Treasury yields: U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates, through September 30, 2026.

9. Gross rental yield: annualized StreetEasy median asking rent ÷ median asking price, by neighborhood, August 2026 release. Screening measure; thin submarkets excluded.

10. Leverage Index: Howard Hanna NYC Leverage Index 2026; inputs courtesy of UrbanDigs. Demand, discount and PPSF charts: HHNYC Graphs workbook.

11. Consumer sentiment: University of Michigan Surveys of Consumers, September 2026 final; history via FRED (UMCSENT).

12. Pied-à-terre surcharge: New York State Supreme Court, Richmond County, decision of September 29, 2026; NYC Department of Finance, Non-primary residence surcharge, https://www.nyc.gov/site/finance/property/non-primary-residence-surcharge.page; Forbes, September 29, 2026; CBS New York, September 29, 2026. Not tax or legal advice.

Questions About This Month’s Market?

If you would like to chat about the most recent market activity,

feel free to contact us at [email protected] or connect with one of our Advisors.

About this report: The Brooklyn Real Estate Market Update is compiled monthly by Rihards Gederts, Howard Hanna NYC Research.

Howard Hanna NYC brings the nation’s largest independent and family-owned brokerage to New York City, uniting the strength of a national network with the insight and sophistication of a local firm. Formed through joining forces with Elegran Real Estate, Howard Hanna NYC delivers a seamless, full-service experience backed by more than 15,000 agents across 500 offices in 14 states. The firm’s forward-thinking, agent-first culture continues to shape the future of real estate across Manhattan and the Tri-State area. Learn more at www.howardhannanyc.com.