New Development Activity Accelerates Into 2026

The first full trading week of 2026 reflects a familiar January pattern: lower absolute activity, but improving sentiment. Buyers are re-engaging, sellers are testing the market, and both sides are positioning ahead of the spring cycle. Regarding pending sales, the recent softness is short term and seasonal, reflecting timing effects rather than any meaningful pullback in buyer demand.

The Howard Hanna NYC Consumer Sentiment Index increased from –33% to –17%, signaling a typical post-holiday rebound as buyer engagement resumes at the start of the calendar year. Early-year momentum is most visible in new development, where activity remains concentrated in well-located, correctly priced projects with strong amenity offerings.

Outlook: Positioning Ahead of Spring Acceleration

Near-term weekly metrics are likely to remain mildly volatile, reflecting seasonal effects. That said, underlying fundamentals point to steadier contract growth as fresh inventory comes online and rate expectations stabilize. Overall, the market is transitioning into a clear pre-spring positioning phase:

• Inventory remains constrained, particularly in Manhattan

• Seller participation is increasing, but selectively and price-disciplined

• Buyer sentiment continues to improve post-holidays

• New development remains the outperforming segment when pricing and product align

For buyers, this period offers a strategic opportunity to secure leverage ahead of intensifying spring competition. For sellers, execution matters: preparation, realistic pricing, and positioning will be critical as the market shifts from reset to acceleration.

Manhattan Supply: Inventory Tightens Further

Manhattan active inventory declined for the eighth consecutive week, falling to 4,895 homes (–0.5% WoW | –19% YoY).

New listings rebounded sharply to 260 units  (+584% WoW | –14% YoY), reflecting a seasonal reactivation rather than structural oversupply. Inventory remains historically constrained relative to demand.

Brooklyn Supply: Sellers Re-Enter Selectively

Brooklyn inventory decreased to 2,793 homes (–2.8% WoW | +1.9% YoY), marking the tenth straight weekly decline.

New listings totaled 181 units (+277% WoW | +11% YoY), confirming renewed seller engagement as 2026 begins, particularly in core neighborhoods.

Manhattan Pending Sales: Declined 0.8% WoW to 3,065 units

Brooklyn Pending Sales: Declined 2.6% WoW to 1,788 units

Photo by Rihards Gederts | Howard Hanna NYC

Manhattan Consumer Sentiment:  Sharp Improvement

Manhattan recorded 85 signed contracts (+16% WoW | –8% YoY). The Manhattan Consumer Sentiment Index improved from –46% to –23%, a notable early-year inflection.

Buyers are increasingly active, aligning with the gradual build-up toward the spring listing season.

Brooklyn Consumer Sentiment: Momentum Turns Positive

Brooklyn also logged 85 signed contracts (+16% WoW | –8% YoY). The Brooklyn Sentiment Index rose from +1% to +17%, signaling growing confidence and early

momentum entering 2026, particularly among value-driven and first-move-up buyers.

New Development Insights 

Marketproof tracked 33 new development contracts across 21 buildings. Top performers included:

• The Sixth (Williamsburg) signed 7 deals

• The Strathmore (Yorkville) signed 5 deals.

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.

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.