Alpha Realty has released its Q2 2025 Multifamily Market Report, revealing a sharp rebound in transaction activity across New York City’s multifamily sector.
NYC Multifamily Market Report Q2 2025 Shows 52% Year-Over-Year Surge in Transactions
The quarter recorded 297 total sales marking a 29.1% increase over Q1 2025 and a notable 52.3% gain year-over-year, despite a continued slide in average deal size, which fell nearly 20% from the previous quarter.
Transaction volume surged across all asset types, with large properties (20+ units) leading the way. Activity nearly doubled from Q1, while volume grew 18.3% to $972.4 million. Meanwhile, the number of small-scale deals (<10 units) rose 15.2%, reflecting investor appetite for lower price-point opportunities in a shifting capital environment.
“The market is clearly recalibrating around pricing,” said Lev Mavashev, Managing Principal at Alpha Realty. “While dollar volume growth remains modest, deal flow has picked up significantly, and investors are jumping back in, especially at more accessible price levels.”
The Bronx, Brooklyn Lead Recovery as Investors Return to Market
Among boroughs, The Bronx stood out, more than doubling its transaction count from Q1 and tripling year-over-year. The borough recorded 74 trades totaling $401.5 million, by far the highest growth in both volume and units sold across the city.
Brooklyn also showed continued strength with 129 transactions (+29% QoQ), while Queens was the only borough to post a quarter-over-quarter decline in transaction count, even as average pricing and total dollar volume grew significantly.
Despite Manhattan’s historic dominance, its average transaction size plummeted 44.5% this quarter, with overall dollar volume down over 50% year-over-year. Interestingly, the submarket’s under-10-unit segment bucked the trend, increasing in both deal count and value, signaling a possible pivot among investors toward smaller assets in traditionally high-barrier neighborhoods.
As investor focus sharpens on yield and repositioning opportunities, Alpha Realty anticipates that deal volume will remain strong through the second half of 2025.
Alpha Realty will continue monitoring market trends as New York’s multifamily sector recalibrates through the second half of 2025. To access past reports or speak with a multifamily specialist, contact us here.