New York City’s multifamily investment market opened 2026 on strong footing, with transaction activity and dollar volume both posting meaningful year-over-year gains across most boroughs.
Alpha Realty’s Q1 2026 Multifamily Market Trends Report, based on Property Shark transaction data, tracks every closed multifamily deal above $1 million across Manhattan, Brooklyn, Queens, and the Bronx. And the picture it paints is one of a market in sustained recovery, led by free-market assets and large-scale properties.
The Citywide Numbers
Across all five boroughs, the NYC multifamily market recorded 275 transactions totaling $1.75 billion in gross dollar volume in Q1 2026. That represents a 19.6% year-over-year increase in deal count and a 16.3% jump in total dollar volume compared to Q1 2025. Average deal size also climbed to $6.8 million, up 4.9% year over year, reflecting continued price appreciation even as the Federal Reserve held the federal funds rate steady at 3.50% to 3.75% throughout the quarter.
Quarter over quarter, transaction volume dipped a modest 3.8% from Q4 2025’s elevated pace, a normal seasonal adjustment following year-end closing activity, not a sign of weakening demand. Dollar volume, by contrast, rose 10.6% quarter over quarter to $1.75 billion, driven by higher average deal sizes across all property types.
The large-scale segment, buildings with 20 or more units, was the primary engine of growth, contributing $1.06 billion in total dollar volume and accounting for 61% of all citywide volume. Transaction counts in this segment jumped 63.6% year over year, reflecting a growing scarcity of new construction inventory following the expiration of the 421-a tax abatement and the slow adoption of its 485-x replacement.
Manhattan Led the Market
Manhattan posted the quarter’s most dramatic numbers, recording 102 transactions and over $1 billion in total dollar volume – its strongest Q1 performance since 2022. Deal count surged 88.9% year over year, while total dollar volume climbed 41.6% to $1.034 billion. The large-scale segment drove the expansion, with 54 transactions totaling $668.3 million, a 147.7% quarter-over-quarter increase reflecting intense institutional competition for existing free-market inventory.
Standout closed deals in Q1 included 210 Sherman Avenue in Inwood, a 126-unit building that traded at $50.6 million, and 45 White Street in TriBeCa, a 17-unit property that sold for $32 million.
Brooklyn Held Its Ground
Brooklyn remained the most active borough by deal count, posting 105 transactions in Q1 2026 – up 5% year over year and essentially flat with Q4 2025’s 107 deals. Total dollar volume came in at $502.4 million, just modestly below Q4 2025 levels. Average transaction size held remarkably steady at $5.1 million, underscoring the borough’s pricing equilibrium. Cap rates in prime Brooklyn neighborhoods including Williamsburg and Park Slope have generally stabilized in the low-6% range, supported by vacancy rates near 2%.
Alpha Realty facilitated the sale of 525 Union Avenue in Williamsburg, a 43-unit building that closed at $38 million in March 2026, representing one of the quarter’s most notable Brooklyn transactions.
Queens Posted Steady Mid-Market Activity
Queens recorded 45 transactions totaling $153.2 million in Q1 2026, up 4.7% year over year in deal count and essentially flat on dollar volume compared to Q1 2025. The borough’s small-asset segment, buildings under 10 units, remained its anchor, with 33 deals generating $64.4 million in volume, up 15.4% year over year. Average deal size settled at $3.5 million, consistent with the borough’s mid-market positioning. Prime neighborhoods including Astoria and Ridgewood continued to benefit from strong transit access and Manhattan spillover demand.
The Bronx Pulled Back After a Strong 2025
The Bronx experienced a significant cyclical adjustment in Q1 2026 following an outsized institutional surge in Q4 2025. The borough recorded 23 transactions totaling $55.6 million, a 25.8% year-over-year decline in deal count and a 42.7% drop in dollar volume. Average transaction size decreased to $2.8 million, in line with the borough’s historical pricing range. Despite the pullback, the longer-term outlook remains constructive, with the $3.1 billion Metro-North Penn Station Access Project expected to drive multifamily demand growth in the East Bronx through 2030.
What It Means for Investors
The Q1 2026 data points to a market driven by two converging forces: sustained investor appetite for free-market assets with operational flexibility, and a structural supply constraint that is unlikely to resolve meaningfully before 2027 or 2028. The expiration of 421-a, the limited uptake of 485-x, and a sharp drop in anticipated new unit deliveries throughout 2026 are creating scarcity conditions that continue to support values in the large-scale and free-market segments.
For investors with capital to deploy, the window to acquire quality assets before the next leg of price appreciation may be narrowing.
For the full borough-by-borough breakdown, transaction data, and property type analysis, download Alpha Realty’s Q1 2026 NYC Multifamily Market Trends Report below: