6 Types Of New York Homes Predicted To Drop In Value By Late 2025 (And 6 That Will Surge)

The New York real estate market is constantly shifting, with some properties gaining value while others lose their appeal. Looking ahead to the coming years, experts are spotting clear patterns in which homes might decline in price and which ones could become more desirable.

Understanding these trends can help buyers and sellers make smarter choices in this competitive market.

1. Luxury Condos In Manhattan

Once the crown jewels of New York real estate, these high-end properties face challenging times ahead. Luxury condos are experiencing decreased demand as remote work continues to reshape living preferences.

Many wealthy buyers are seeking more space outside the city center. With oversupply issues and changing lifestyle priorities, expect values to dip by late 2025.

2. Older Co-Ops With High Maintenance Fees

Financial burdens are catching up with these once-desirable addresses. Older co-ops typically require significant monthly payments that cover building staff, repairs, and utilities.

These aging properties often need costly updates to remain competitive. As buyers become increasingly cost-conscious, these high-maintenance fee properties will likely see their values decline substantially.

3. Suburban McMansions Far From Transit

Car-dependent living is falling out of favor fast. Properties requiring long commutes without public transportation options are losing appeal among environmentally conscious and convenience-seeking buyers.

These large suburban homes often come with hefty energy bills and maintenance costs. As gas prices fluctuate and sustainability concerns grow, expect these transit-isolated properties to drop in value.

4. Small Walk-Up Apartments In Less Trendy Areas

Market challenges are mounting for these basic units. Without elevators or modern amenities, walk-up apartments in neighborhoods that haven’t yet gentrified face tough competition from newer developments.

Many buyers and renters prioritize convenience features like doormen and laundry facilities. These modest properties in less fashionable areas will likely see values decrease as buyers expect more for their money.

5. High-End Waterfront Properties In Flood Zones

Climate concerns are washing away premium values. Waterfront locations once commanded top dollar regardless of environmental risks, but buyers are becoming increasingly wary of properties in flood-prone areas.

Insurance costs for these homes continue to skyrocket as extreme weather events become more common. Even luxury features can’t offset the growing financial and safety risks associated with these vulnerable locations.

6. Large Rural Estates In Upstate NY

Sprawling properties are losing their appeal in today’s market. Maintenance demands and isolation make these estates increasingly difficult to sell, especially to younger buyers who prefer community-oriented living.

Rural mansions often come with significant upkeep costs and limited amenities nearby. As preferences shift toward more connected and manageable living arrangements, expect these grand country homes to see declining values.

7. Affordable Units In Outer Boroughs

Value hunters are driving unprecedented demand in these areas. Previously overlooked neighborhoods in Queens, Brooklyn, and the Bronx are attracting first-time buyers and investors seeking more affordable entry points into the New York market.

These properties offer good space-to-price ratios compared to Manhattan. With improved transit connections and growing amenities, expect these more accessible homes to see significant price growth through 2025.

8. New Developments Near Transit Hubs

Convenience is commanding premium prices in today’s market. Properties within walking distance of subway and train stations are seeing intense buyer interest as commuters prioritize easy transportation access.

These transit-oriented developments often include modern amenities and energy-efficient features. With New York continuing to invest in public transportation infrastructure, these strategically located homes will likely see substantial value increases.

9. Sustainable/Green Certified Homes

Eco-friendly features are becoming major selling points rather than just nice-to-have extras. Properties with solar panels, energy-efficient systems, and sustainable materials appeal to environmentally conscious buyers and those seeking lower utility costs.

Green-certified homes often command higher resale values and sell faster. As climate awareness grows and energy prices rise, expect these sustainable properties to see their value advantage increase substantially.

10. Townhouses In Walkable Neighborhoods

Urban convenience with private space creates an irresistible combination for today’s buyers. Properties that offer the perfect balance between apartment living and single-family homes are in high demand across New York’s more pedestrian-friendly areas.

Townhouses provide outdoor space while maintaining proximity to restaurants, shops, and parks. This housing type hits the sweet spot for many families, ensuring values will continue climbing through 2025.

11. Smaller Single-Family Homes In Growing Suburbs

Right-sized living is trumping the bigger-is-better mentality of previous decades. Modest houses in commuter-friendly suburbs offer the perfect balance of space, affordability, and proximity to urban centers.

These properties appeal to first-time buyers and downsizing empty-nesters alike. With more flexible work arrangements allowing for partial remote work, expect these well-located smaller homes to see steady appreciation through 2025.

12. Mixed-Use Loft Spaces In Revitalized Downtowns

Creative conversions are capturing premium buyers in surprising locations. Former industrial buildings transformed into living spaces with commercial elements are thriving in smaller city centers throughout New York State.

These character-filled properties offer unique architectural features and flexible layouts. As more people seek authentic spaces with work-from-home potential, these distinctive properties will continue seeing strong value growth in coming years.