By Serj Markarian, Licensed Real Estate Salesperson

When we hear that inventory is up, it’s easy to assume there’s no shortage of supply. However, this assumption often overlooks a key nuance: inventory figures represent total supply across the board. While the overall number may seem robust, it doesn’t account for specific neighborhoods or price points where inventory might actually be low. As a result, aggregate numbers can be misleading at first glance.

According to Brown Harris Stevens’ November 2024 Manhattan Inventory Report, there was a slight decline in supply compared to the previous month and year-over-year. That said, the total number of listings—3,665—was largely comparable to recent trends, with 2- and 3-bedroom units making up the bulk of the market. For buyers focused on particular neighborhoods or unit types, however, the selection may feel limited.

This disparity is a growing concern among New York brokers, many of whom view the lack of desirable inventory as a significant barrier to the city’s market recovery. The aggregate numbers don’t tell the full story because neighborhoods, property types, or buildings with an abundance of inventory can skew the total, even as more sought-after listings remain scarce. This is where granular insights, like those provided by the inventory report, become crucial for evaluating supply by neighborhood and unit type.

Despite these challenges, some experts suggest the market’s inventory levels are far from dire. UrbanDigs co-founder John Walkup notes that while listings in Manhattan have decreased, it’s not a red flag. He observes that demand is slightly outpacing supply, which he interprets as a sign of a functioning market. Walkup explains, “The market is functioning as you would expect it to function, just at a lower level.”

Jason Thomas, Senior VP of Research and Market Analytics at Brown Harris Stevens, offers a similar perspective. He points to the number of new development apartments available, commenting, “Every buyer has not one apartment—they have three, or actually more than three. That’s not tight to me.”

The underlying issue is that buyers are often seeking specific kinds of properties—such as shiny new condos or historic townhouses—that are in limited supply. As Jonathan Miller, CEO of Miller Samuel, explains, “The reason it feels low is that a lot of the supply that has come in over the last few years to Manhattan has been priced like 2021, which was sort of peak frenzy.”

For buyers, this means understanding how inventory levels influence demand and pricing is essential. A knowledgeable broker can help guide you toward fair and reasonable pricing by analyzing factors such as days on market, neighborhood trends, and property types.

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Posted by Hannah Minnick, BHS Content Team