The shortage has pushed demand — and prices — higher. The Corcoran Group reports that in the third quarter, sales at new developments on the Upper West Side jumped 41% year over year, while resale condo and co-op sales remained flat. The neighborhood’s median sales price climbed 8%, driven largely by new construction activity.
Even with rising prices, new buildings continue to sell quickly. Naftali Group’s The Henry on West 84th Street has sold 70% of its 45 units since launching in September 2024, while Toll Brothers’ The Rockwell on West 103rd Street is 86% sold, according to Marketproof. Across all new Upper West Side projects, about two-thirds of available units have sold, outperforming Manhattan’s average of 55%.
Developers say limited buildable land and strict preservation rules make new projects difficult. “When there’s demand and little inventory, the price of Upper West Side apartments will go up,” said Naftali Group CEO Miki Naftali, whose units at 211 West 84th Street start at over $2 million for one-bedrooms, with four-bedroom apartments ranging from $6,550,000 to over $28 million, according to Streeteasy.
The scarcity is compounded by a 2019 state law that made rental-to-condo conversions much harder, requiring developers to sell at least 51% of units to existing tenants — an unlikely outcome in most cases. That pipeline, once a steady source of new condos, has nearly vanished.Developers also face economic headwinds, from high interest rates to soaring construction costs. “It’s almost impossible to bring to market a building where they can sell at the entry-level price point,” said Kelly Mack, president of Corcoran Sunshine.
Meanwhile, buyers’ preferences have shifted away from older co-ops toward modern buildings with amenities like central air and turn-key finishes, according to the report.
The appeal of luxury projects is clear — but accessibility is another story. The lowest-priced apartment at Extell’s 50 West 66th Street sold for $3.6 million, according to StreetEasy. By contrast, resale condos on the Upper West Side averaged $1.6 million in the third quarter.
For some longtime residents, the shift underscores how the neighborhood has changed. “These days, you have to be really rich to live here,” said Marcia Kaufman, a retired public school teacher quoted by Bloomberg. “For families, it’s very, very difficult.”
