Yesterday an article and accompanying video came out to report about the Manhattan real estate markets on CNBC, a highly trusted source for all sorts of financial information and news absorbed by millions around the US and the globe. Our clients here and around the world read this stuff and believe it. They rely on these media entities for news and intelligence and insights not just in NYC but throughout the United States. I am worried for them. The headline was: "Manhattan condo values fell over the past decade. Here's why rents are still rising!"
So, let me break this down to clearly demonstrate how unreliable this article was:
1. Manhattan condo values fell over the past decade, leading to losses for 1 in 3 sellers in the past year!
- This also implies that 2 out of 3 did not experience losses, the majority.
- No data was provided about which properties sold at a loss and why (ps: it was mostly condos that were bought after a massive inventory supply shortage in 2014.
- No mention of the deep reduction in SALT deductions.
- No mention of the sharp hike in 'mansion taxes' in 2019.
2. Demand from foreign buyers is lower than in past years amid shifting foreign exchange rates against the U.S. dollar!
- Foreign buyers account for a very small percent of purchases in Manhattan. And yes, a stronger dollar hurts a little for some, not all.
- No mention of new laws enacted to trace the source of capital on foreign buyers. In 2016, with the Financial Crimes Enforcement Network (FinCEN) issuing Geographic Targeting Orders (GTOs) to require title insurance companies in high-value markets to report the identities of "all-cash" purchasers of high-end residential real estate through shell companies.
3. 65% of buyers are all cash buyers.
- No mention that many who buy 'all cash' take out a loan against their real estate soon after (within 6 months) so that they can deduct all the interest costs, not just the much smaller SALT limits.
4. Median rents in Manhattan are $4,973 per month, a 10% increase from one year ago!
- No mention that the CARE act passed in June 2025 was enacted that now forces landlords to pay out all or half of the broker commissions which automatically led rental asking prices to be raised.
I have to question whether the sources they used for their insights forgot or selectively omitted some or all of the above, were not asked, or did mention some or all of this and these points were selectively omitted to fuel a more salacious headline?
Then again, I simultaneously celebrate this painfully inadequate reporting as it further fuels my belief that for real, intelligent, complete, real-time, insightful intelligence about all things real estate, there is only one reliable source: ethical, professional real estate agents deeply entrenched in the markets.
Yes it's annoying and sometimes infuriating and time-wasting to have to spend so much time addressing the above claims with clients who read this stuff and believe it. Then again, this often reminds clients why I get paid.
