Manhattan’s luxury market had an exceptional 2025. According to data from Miller Samuel and Douglas Elliman, luxury sales — defined as the top 10% of transactions — hit nearly $12 billion across more than 1,400 contracts, an 11% year-over-year increase. Signed contracts for homes above $4 million rose 25% in November alone. The momentum has carried into early 2026, with the ultra-luxury tier above $20 million averaging $7,185 per square foot.

Three forces are driving the upper end. First, stock market performance: record equity levels through late 2025 and early 2026 boosted wealth among Manhattan’s core buyer demographic. Second, international capital: buyers from the Middle East, Asia, and Europe have returned to Manhattan as a stable store of value and long-term wealth preservation. Third, scarcity: true trophy properties — prewar penthouses, full-floor residences, architecturally significant townhouses — are genuinely rare. When one surfaces, multiple qualified buyers move fast.

Within the luxury tier, there is a meaningful divergence between condos and co-ops. Condo prices drove the overall gains in early 2026, while co-op values pulled in the opposite direction — co-op contracts were down approximately 15% and inventory down 10% year-over-year. For buyers who can navigate the board approval process, co-ops represent a less competitive entry into the luxury tier. For more on that process, the NYC co-op board package guide covers what to expect.

The most active luxury neighborhoods in Manhattan: Tribeca and SoHo for loft conversions and boutique new-builds; the Upper East Side for prewar prestige on Park and Fifth; Hudson Yards and West Chelsea for modern new development with strong appreciation trajectories; and the West Village, which maintains consistent demand due to extremely limited supply.

Westchester’s luxury market has shown consistent resilience. According to the Houlihan Lawrence Q2 2025 Luxury Market report, demand for properties priced at $2 million and above remained strong despite elevated borrowing costs. The $3M+ category in particular continued to perform well, fueled by low inventory and steady interest from both local buyers and Manhattan relocators. The Westchester overall market saw the median sale price for single-family homes rise 8% year-over-year to $994,000 in September 2025 — with only 2.4 months of supply, keeping it a clear seller’s market.

Buyers in Westchester’s luxury tier are prioritizing specific attributes: updated interiors, outdoor living spaces, proximity to Metro-North, and strong school district zoning. Move-in-ready homes in Scarsdale, Bronxville, Rye, Chappaqua, and Armonk — areas that anchor the luxury tier — are still seeing multiple offers when priced accurately. Homes that require significant renovation or are priced above recent comparable sales are sitting. The pattern mirrors what we see in the broader market but is amplified: at $2M+, buyers are patient and the tolerance for overpricing is essentially zero.

One dynamic worth watching: the ultra-luxury tier above $10M remains highly selective across Westchester and the surrounding counties. Buyers at that level expect architectural significance, genuine privacy, and exceptional settings. The school district factor — covered in detail in the Westchester school district guide — plays a central role in location decisions even at this price point, because the underlying resale market in top-district towns is consistently stronger.

Luxury buyers are not simply spending more — they are evaluating differently. The due diligence at this price point is more thorough, the decision timeline is longer, and the criteria are more specific. Understanding what drives value at $2M+ helps both buyers and sellers position correctly.

In Manhattan:

Building quality and management are primary. Luxury buyers scrutinize reserve funds, board meeting minutes, capital project histories, and maintenance-to-value ratios before committing. A prestigious address in a poorly managed building is a red flag. Pre-war construction with high ceilings, pre-war details, and low turnover in the building are markers buyers pay a premium for. Outdoor space — a terrace, private roof access — commands significant premiums over comparable interior square footage.

In Westchester:

Condition is the primary driver. Buyers at $2M+ in Westchester expect turnkey — not cosmetically updated, but genuinely done. Updated kitchens and bathrooms, modern HVAC and mechanicals, outdoor living infrastructure (pool, landscaping, patio), and home office space are now baseline expectations. Proximity to the train station is a significant value driver in communities like Scarsdale, Larchmont, Bronxville, and Rye. A house in a top school district that is two minutes from the platform sells at a meaningful premium over the same house fifteen minutes away.