In the past several years, downtown's inventory and identity have been evolving by what seems to be an overwhelming number of new condominium developments and conversions. The truth behind this is a bit more complex and nuanced. The market turndown of late 2008 and 2009 drastically reduced the number of building applications being filed with the Attorney General's office for these new developments and conversions; a dearth of inventory followed, which as a result also hindered the number of sales. Although far shy of the inventory highs prior to the downturn, by 2013 the pent-up demand made for a stellar year in overall sales volume. The absorption rate (a measure of how much time it takes to sell the current inventory at any one time) for luxury units in the Q1 of 2013 as a whole had dipped to merely 5 months. This year (2014) sales are down year-over-year (as compared with 2013) by approximately one third; however, they are still up approximately 20% on what transpired in 2012. The current overall absorption rate is approximately 8 months, which is considered a supply and demand "equilibrium" (anything between 6-9 months). Currently the absorption rate for both two and three bedrooms falls right within that range; however, since so much of the new inventory has been concentrated in larger four-plus bedroom apartments (therefore increasing the number available), their absorption rate has crept up closer to 11-12 months, with Penthouses as much as 20+ months. Interestingly, the increase in demand for one bedrooms, of which there are fewer, has reduced the absorption rate to merely 4-5 months. Further, available units priced $1M or below has decreased by 16% downtown and 20% in Manhattan as a whole.

Whereas the number of downtown new development and conversion units is drastically expected to increase in the coming years (from an average of approximately 250 new units per year from 2005 to 2012 to approximately 1150+ units between 2013-2016), current overall inventory (including coops) is down significantly from pre-downturn levels.

Miller Samuels reported that in Manhattan, "the priciest sales per square foot concentrated toward the southern end of Central Park, as well as West Chelsea, NoMad and points south. Three bedrooms gained most with 30% price increase from a year ago. 27% of all new development sales this quarter were in 3+ bedrooms. The Manhattan Luxury New Development Market is demonstrating strong advances in pricing and price per square foot. Q2 2014 average price for new development inventory rose 66.3% since Q2 2013 to $3,520,735 from $2,116,759. Q2 2014 average price per square foot for new development inventory is $1,900, up 33.1% since the same quarter last year."