New York has long occupied a category of its own in the world of high-end real estate. From iconic Fifth Avenue cooperatives to ultra-modern condominium towers overlooking Central Park, the city attracts a uniquely global pool of buyers whose purchasing decisions are shaped by far more than interest rates and market cycles. To better understand what is driving today's landscape, we spoke with Steven James, President and CEO of Berkshire Hathaway HomeServices New York Properties, who shared his insights on the market forces, buyer behaviors, and emerging trends shaping luxury living across New York City. 

The anatomy of New York City ownership

To understand the market, you first have to understand how unique New York City's residential framework is compared to other global metropoles. James pointed out that the city's foundational makeup often surprises outsiders.

"Most people don't realize this, but New York is basically a rental city. Two-thirds of New Yorkers rent, and one-third own," James explained. "That one-third that own, however, represents a very powerful, very expensive, and very lucrative segment of New York City real estate."

For luxury buyers entering the market, that ownership segment introduces a distinct structural split. "That ownership market breaks down into approximately 65% cooperatives and 35% condominiums," James said. "It's a very different kind of market, and the distinction between co-ops and condominiums means a lot to people coming to the city for the first time, especially those looking at the luxury market."

Scarcity and liquid power

Instead of viewing the market through the lens of traditional economics, James looks at the market through what he described as a supply-constrained, segmented, and surprisingly resilient framework. At the heart of this resilience is a story of chronic, long-term scarcity.

"Inventory has been a dominant story since 2010 or 2012, and it remains a major factor today," James noted. "Manhattan remains especially tight, which has surprised many of us. Well-priced, desirable properties continue to attract strong interest."

While luxury resale inventory remains incredibly limited, a wave of ultra-luxury new developments has stepped in to anchor the highest tier of the market. This structural tightness has shifted pricing power entirely, pushing median sales prices roughly 5% higher year over year. But according to James, the appreciation story is deeply divided along structural lines. Prime condominiums command massive premiums, while co-ops continue to lag behind and experience far more intense price negotiation.

"The co-op approval process can be very onerous because boards scrutinize every aspect of a buyer's financial profile, portfolio, and statements," James observed. He pointed out that buyers open to both formats often capitalize on this additional layer of scrutiny to negotiate significantly better deals in the co-op sector.

Yet, whether a buyer chooses a sleek new high-rise or a historic pre-war co-op, one absolute rule stands above all others: liquidity reigns supreme. "Cash is king in New York City, and it has been for many years," James emphasized. "Even when buyers don’t pay entirely in cash, they often use it as a bargaining chip during negotiations.”

This reality becomes unmistakably clear when looking at recent closing data, where 64% to 69% of all residential sales across the city were all‑cash transactions. In the luxury tier, the dominance is even more dramatic—approximately 90% of sales over $3 million closed entirely without financing. Because of this massive pool of liquidity, high-end demand operates on an entirely different axis than the rest of the country.

"One of the biggest surprises has been buyer resilience," James reflected. "At the luxury level, especially above $4 million, the market continues to benefit from limited inventory, cash purchases, and strong demand for turnkey, renovated properties. The market is no longer being driven primarily by interest rates; it's being driven by scarcity."

The “new buyer” typologies

James shared that the luxury buyer pool has increasingly divided into two major groups. The first centers on the rise of the multi-home wealth portfolio. Affluent individuals are increasingly shifting away from the concept of a single primary residence. "The multi-home wealth buyer is the biggest trend," James said. "Buyers maintain portfolios of homes in Manhattan, Florida, the Hamptons, Aspen, Los Angeles, and even Europe."

This paradigm shift has radically altered what these buyers expect from their New York square footage. "What changed is that many wealthy individuals discovered they could spend substantial portions of the year elsewhere while still maintaining their business and social ties to New York City," James noted. "As a result, we're seeing strong preferences for larger turnkey apartments, lock-and-leave luxury condominiums, full-service buildings, and properties with extensive amenities."

The second major wave consists of corporate leaders, finance executives, and empty nesters returning from the suburbs. James explained that these buyers are drawn back by the city's unparalleled energy. "Many people who left during the pandemic have gradually returned because of career opportunities, culture, education, and social connections. They want to be in New York City for many reasons beyond work alone."

Common misconceptions

Perhaps the most valuable warning James shared was aimed directly at ultra-wealthy buyers entering the New York grid for the first time. Having deep pockets and a flawless financial statement does not guarantee an easy path.

"Buyers come here believing that because they're luxury buyers, paying all cash, and have significant financial resources, they're going to have an easy time," James warned. "What they usually encounter is 10 to 20 other people exactly like themselves."

The sheer concentration of global capital in Manhattan means that elite qualification is merely the baseline for entry. Luxury consumers quickly find themselves trapped in intense bidding wars with equally qualified peers, which has fundamentally transformed how transactions are executed.

"Today's buyers are highly selective. They have substantial resources, they're willing to wait for the right property, and when the right property becomes available, they move quickly," James said. He noted that while buyers were hesitant and slow to make decisions just a few years ago, the market has seen a complete reversal toward blinding speed.

Driving growth at Berkshire Hathaway HomeServices New York Properties

James's infectious optimism is mirrored in the rapid trajectory of his firm, Berkshire Hathaway HomeServices New York Properties. Since taking the helm four years ago, James has engineered an aggressive recruitment and market share expansion strategy that has caught the attention of the entire industry.

"We've grown significantly," James said proudly. "I came here four years ago from another brokerage, where I was also President and CEO. I went from leading a company with about 2,000 agents to joining a firm with around 70 agents. Over the last four years, I've focused heavily on recruiting, and now we have a little over 100 agents, including a number who came from my previous company."

The growth is vividly illustrated by the firm's rapid climb up The Real Deal’s definitive annual leaderboard of New York City brokerages. "When I first arrived... we weren't even in the top 25. I thought that had to change," James recalled. "This year, we're ranked No. 17, and I believe we'll move even higher by the end of the year because we're having a very strong year. That's been very exciting." 

With a world-class corporate backing their local execution, the firm is successfully bridging the gap between global brand recognition and hyper-local Manhattan expertise. "Everyone says the same thing: Berkshire Hathaway HomeServices is a great brand. People recognize it, but when I first arrived, they didn't necessarily associate it with real estate in New York City," James concluded. "Now they're seeing that we're signing a lot of listings and closing a lot of sales. That's reflected in the rankings, and slowly but surely, we're getting there. I feel very confident, encouraged, and excited about where our company is headed here in New York City."