In the glittering real estate jungle of Manhattan, a dramatic divide is unfolding. While average buyers are hesitating—wary of soaring mortgage rates and economic uncertainty—another group is making bold, swift moves. These buyers don’t worry about interest rates, financing, or mortgage approvals. They arrive with wire transfers ready, snapping up multi-million-dollar properties with ease.
They are the cash-rich elite—and right now, they’re holding up Manhattan’s real estate market almost singlehandedly.
According to the latest quarterly report by Miller Samuel for Douglas Elliman, a record-breaking 69% of home purchases in Manhattan in Q2 2025 were all-cash deals, the highest level ever recorded. Meanwhile, transactions involving financing contingencies—clauses allowing buyers to back out if they can’t secure a loan—have surged to their second-highest point in a decade.
Jonathan Miller, founder of the report’s namesake firm, called the market “deeply polarized.” And he’s right—what’s happening in Manhattan reflects not just a gap between income levels, but a growing structural split in how people can (or cannot) access real estate.
Much of this divergence can be traced to the financial markets.
In New York City, Wall Street’s performance often runs parallel to high-end real estate. When stocks are up, luxury property follows. So it’s no surprise that areas like Billionaire’s Row are buzzing again.
Cash deals spiked 23% this spring alone, while the top 10% of co-op and condo transactions outpaced the broader market. To be part of this “luxury tier,” buyers had to spend at least $4.5 million in Q2—where the median sale price reached a striking $6.52 million.
For people like Anna Schmidt, a German finance executive recently relocated from London, buying in Manhattan wasn’t about finding a home—it was about safeguarding capital. “We had a great investment year in 2024,” she said. “So my husband and I decided to pick up a pied-à-terre near Central Park. With the way markets have been swinging lately, bricks and mortar just felt safer.”
And they’re not alone. In the city’s high-end real estate circles, deals that sat idle for months are finally closing. Keller Williams broker Nicole Gary said back in April that long-stagnant luxury inventory was beginning to move, with Q1 marking the best performance for Manhattan’s ultra-luxury market in six years.
“People have always seen Manhattan real estate as a hedge against inflation,” Gary said. “Even when the stock market is volatile, this is where money feels safe.”
Luxury sales are up 18% year over year, while high-end inventory has shrunk by 21%.
On the flip side, ordinary buyers are still grappling with harsh lending conditions. While overall transaction volume increased 16% year-over-year, median prices in the general market crept up less than 2%, to $1.2 million. Inventory rose slightly—just 3%—but not enough to ease competition or improve affordability for those relying on financing.
“This is really two markets operating in one city,” Gary explained. “If a property is reasonably priced and appealing, the cash buyers will swoop in before anyone else can even schedule a showing.”
What’s “reasonable” is, of course, relative. For the average Manhattan household navigating 7% mortgage rates, even a $1 million apartment feels like a stretch. But for buyers coming from tech in Silicon Valley, hedge funds in Zurich, or family offices in London, that same apartment is a relatively safe way to diversify.
Take Julien Bertrand, a French tech investor based in Miami. He recently purchased an under-construction condo near Columbus Circle. “I had my eye on it for months,” he said. “They were asking $9 million. The developer dropped to $8.5 million, and I jumped.”
Stories like Bertrand’s may not reflect the full market picture—but they speak volumes about who’s shaping today’s trends.
One important caveat: many of the closings recorded in Q2 were negotiated well before the latest round of economic turbulence—namely, Trump’s new tariffs, which rattled financial markets in early summer. Whether those ripple effects will dampen luxury buyer enthusiasm remains to be seen.
Some market watchers suggest international interest could dip slightly, especially among overseas investors affected by currency shifts and trade uncertainty. But for now, Manhattan’s cash-rich elite remain undeterred—and often, unstoppable.
In 2025, Manhattan real estate isn’t a level playing field. For most people, it’s still a waiting game. But for a select few, it’s a shopping spree.