Brooklyn has overtaken Manhattan as New York City's leading borough for multifamily property sales, signaling a shift in investment activity across the city's residential real estate market. The latest figures show that apartment buildings in Brooklyn attracted more total sales dollars during the third quarter of 2026 than properties in Manhattan south of 96th Street.
According to a quarterly report from Ariel Property Advisors, Brooklyn recorded $693.8 million in multifamily sales during the third quarter, narrowly ahead of Manhattan's $685.2 million. Brooklyn's total represented a 12.8% decline from the same period last year, but the number of transactions increased 12.7% to 178. Manhattan, meanwhile, experienced a sharper 43.6% drop in sales volume.
Brooklyn Gains Ground as Manhattan Sales Slow
Brooklyn's lead reflects a market that remains active despite elevated borrowing costs and uncertainty surrounding property values. Buyers completed more transactions in the borough even as total dollar volume declined, suggesting that activity was spread across a larger number of deals rather than dominated by a handful of expensive properties.
Manhattan's results were more uneven. Although the number of transactions below 96th Street edged up slightly to 58, the dollar value of those sales fell significantly compared with last year. Upper Manhattan performed differently, with multifamily sales volume increasing 32.8% year over year, while Queens recorded a 26.9% increase. The Bronx saw sales volume decline 5% to $123.5 million.
NYC Multifamily Investment Remains Active
Despite the third-quarter slowdown, New York City's multifamily investment market has grown over the course of 2026. Across Brooklyn, Manhattan and the Bronx and Queens, sales reached $6.99 billion across 1,044 transactions during the first three quarters, representing increases of 7.9% in dollar volume and 11.5% in transaction count compared with the same period in 2025.
However, the third quarter was the weakest quarter of the year by total sales value. Transactions worth at least $50 million became less frequent, suggesting that some investors remain cautious about making large commitments in a market where financing costs and property valuations are still challenging.
Investors Are Choosing Properties More Carefully
The report also highlights an important divide between different types of apartment buildings. Properties with predominantly market-rate units accounted for the largest share of third-quarter sales volume, while rent-stabilized buildings continued to face valuation pressure.
Investors are paying close attention to a property's ability to generate predictable income. Market-rate buildings and subsidized affordable housing with reliable cash flows have continued to attract interest, while rent-stabilized properties can face additional financial challenges because of regulatory limits and financing constraints.
This distinction matters for owners considering a sale or refinancing. A building's location remains important, but buyers are also scrutinizing operating expenses, potential rental income, regulatory obligations and the amount of capital needed for repairs.
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