In Brooklyn, Buyers Under $1 Million Have the Upper Hand as Inventory Stays Tight

Written by:

Alejandra Rodriguez

Date:

30 May 2026

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Rising interest rates, record-high rents, and shifting work patterns have reshaped Brooklyn’s housing market. The bidding-war frenzy of 2021 is gone, but prices haven’t dropped. The market has settled into a steadier pace that rewards preparation over speed. The result is a clear divide. Buyers shopping under $1 million are finding opportunities. Those above that threshold face steeper costs and fewer competitors.

Adam Hamdan, co-founder of the GAMA Team and a Brooklyn-based broker with nearly 13 years of experience, says the shift is measured but real. “I’ve seen more steady and slower growth today,” he says. A correctly priced home in Brooklyn is still selling in about two to three weeks, fast by most standards, but noticeably slower than the near-instant sales of the pandemic years.

The bigger story is inventory. In neighborhoods like Bay Ridge, there are roughly 30 homes for sale at any given time, a remarkably thin supply for a high-demand area. That scarcity is keeping prices from falling, even as higher interest rates squeeze buyers’ budgets.

Rates, Rents, and Remote Work

Three forces are reshaping who buys, what they buy, and what they pay.

Mortgage rates have roughly doubled since the pandemic era, creating a real affordability hit. But according to Hamdan, buyers have mentally adjusted. “The shock factor is gone with the rates today,” he says. Serious buyers, including people getting married, growing families, or relocating, are still purchasing. They’ve accepted the current rate environment.

At the same time, Brooklyn rents have climbed to historic highs, pushing more renters toward ownership. When monthly rent rivals a mortgage payment, the math favors buying, especially for those with savings earning little interest.

Remote work has also redirected demand. Buyers who once paid a premium to live near Midtown Manhattan are reconsidering. With hybrid schedules now standard, South Brooklyn and Staten Island have become more attractive, offering more space, parking, and yards at lower price points than Manhattan or downtown Brooklyn.

The $1M Price Split

The market splits cleanly at the $1 million mark. Homes priced between $650,000 and $1 million are moving faster, supported by a larger pool of qualified buyers. Many of these buyers can use FHA loans, which allow down payments as low as 3.5% for first-time purchasers.

Once a home exceeds $1 million, the buyer pool shrinks for two reasons: most lenders require a 20% down payment, and New York State’s mansion tax adds a surcharge at closing. On a $1.1 million home, that means thousands of dollars out of pocket on top of all other costs. “That takes away buyers,” Hamdan says, “because they want to stay under that million-dollar range to make it more affordable.”

Guidance for Buyers and Sellers

For buyers shopping under $1 million, inventory constraints mean well-priced homes don’t linger. Getting fully pre-approved, not just pre-qualified, before touring is essential. Hamdan advises against letting current rates prevent a purchase: “You marry the home, and you date the rate.” Refinancing is always possible later; renegotiating a purchase price after closing is not.

Sellers face a different calculation. Spring and early summer remain the strongest selling windows, when buyer activity peaks. But pricing realistically from day one matters more than ever. Overpricing in a higher-rate environment produces stale listings that are harder to sell than fresh ones. Modest updates can meaningfully increase the sale price when the home needs work.

For renters weighing their options, the rent-versus-buy math in Brooklyn is narrowing. With rents at historic highs and home prices relatively stable, monthly ownership costs may match or undercut a lease renewal, particularly for those who qualify for first-time buyer programs or down payment assistance.

Brooklyn Market Outlook

Brooklyn’s housing market is neither booming as it did in 2021 nor declining. It’s in a steady phase where preparation and realistic pricing determine outcomes more than luck or timing. Buyers have more breathing room than a few years ago, but tight inventory still punishes hesitation, particularly below $1 million. Above that threshold, sellers face a smaller, more cautious pool of buyers and must price accordingly. “When a property is priced correctly and presented well, it still moves fairly quickly,” Hamdan says. The advantage belongs to those who understand where the lines are drawn.

About the Expert: Adam Hamdan is a licensed real estate broker and co-founder of the GAMA Team, focused on South Brooklyn and Staten Island, with over a decade of experience in the Brooklyn market. His practice spans both residential sales and apartment rentals, with the team headquartered in Bay Ridge, Brooklyn.

This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.