Home prices in Brooklyn are breaking records as inventory increases

The average sales price for all types of homes in the municipality now amounts to $1 million for the first time.

With real estate showing signs of cooling nationwide, Brooklyn’s housing market remains robust, with home prices reaching new highs and inventories also rising in the third quarter.

Average and median prices for homes across the borough rose to the highest level on record in the third quarter of 2025, with the median sales price now surpassing the million-dollar mark, according to a market report from appraisal firm Miller Samuel for Douglas Elliman.

The average sales price of all home types rose 11.6 percent year over year to $1,388,463, while the median was $1.05 million, up 7.7 percent from the same period last year. It is the third consecutive quarter that prices in the municipality have reached new heights.

Sales activity and inventory also increased, demonstrating movement in the market, especially among luxury listings where inventory increased 84.4 percent year-over-year and revenue increased 36.1 percent.

The number of listings for all types of homes in the municipality increased by 16.3 percent year on year to 3,417 homes in the third quarter and the sales volume increased by 7.1 percent compared to a year earlier to 2,705 transactions.

The Brooklyn story is still about record prices, Jonathan Miller of Miller Samuel told Brownstoner. “Over the past three quarters, median and average sales prices have been the highest in history, and in the third quarter, the median price of $1.05 million marks the first time overall pricing has exceeded the $1 million threshold,” he said.

While there was an increase in sales and inventory, Miller added, Brooklyn is “hampered by chronically low inventory levels, [and] even if there are supplies [are] is rising, it is still on the low side and that remains a challenge.” This was reflected in the fact that 22 percent of sales in the municipality were above asking price, he said.

Condos led the gains in the third quarter, with average prices rising 14.8 percent year over year to $1,147,766. The gains were especially pronounced for new construction apartments, which rose 28.8 percent year-over-year to $1,365,500. While the median for apartments rose, the price per square foot actually fell 5.9 percent from the same time last year, to $1,075.

One- to three-family homes also rose in price in the third quarter, with average prices rising 7.5 percent year over year to $1,265,297. The average price per square foot for these homes also rose 12.3 percent to $893.

Co-ops, meanwhile, saw modest growth, with average prices rising 1.1 percent to $555,000 and sales increasing 1.8 percent to 573 units.

Northwest Brooklyn saw some of the largest price increases in the neighborhood. That was especially pronounced for one- and two-family homes, whose average price rose 21.6 percent to $3.75 million and 18.2 percent to $3.25 million, respectively. The average price per square foot for one- to three-family homes also rose 16.1 percent to $2,231.

Looking ahead, Miller said upcoming Fed rate cuts could lead to lower mortgage rates and likely more sales. However, lower mortgage rates could also lead to higher prices because “inventory is being burned faster than it can be created, and that drives prices higher.”

In the longer term, he said, the government’s tariffs create uncertainty in the economy and the potential for a recession. He said that could lead to lower rates, but also to job losses and a weaker economy, which could depress sales and prices.

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