MM&Co. analysis · Maggie Marshall’s perspective. Reported figures are cited below.

There is something inherently different about Brooklyn's townhouse market. Unlike a condominium, where buyers can often compare similar residences within the same building, a townhouse is an individual asset shaped by its architecture, history, condition and location. Even two houses on the same block can have dramatically different values, making thoughtful valuation particularly important in today's market.

From Brooklyn Heights and Cobble Hill to Carroll Gardens and Park Slope, buyers continue to be drawn to the architectural character, privacy and sense of permanence that townhouse living offers. According to real estate appraiser Jonathan Miller's third-quarter 2026 analysis, Brooklyn's median and average residential sales prices reached record highs, while listing inventory declined modestly from the previous year. Median prices for one-to-three-family properties also reached new highs, reflecting continued strength in the borough's low-rise residential market. 1

A particularly active week in spring illustrates the scale of Brooklyn’s luxury market. According to Compass data reported by The Real Deal, 37 Brooklyn properties asking at least $2 million entered contract from May 4 to 10, 2026, representing $153 million in aggregate asking-price volume. At the time of the report, it was the second-highest weekly dollar volume since Compass began tracking the market in 2020. While those figures reflect the broader luxury market rather than townhouses exclusively, they show the significant commitments buyers were making during that week. 2

What an asking price can tell you

Strong demand, however, does not mean every asking price accurately reflects market value. A meticulously restored brownstone may command a substantial premium over an unrenovated property of similar dimensions just a few blocks away. Architectural integrity, layout, natural light, outdoor space and the extent of required improvements can all influence what a buyer is willing to pay. Understanding those distinctions becomes particularly important when directly comparable sales are limited.

One transaction that illustrates this is 48 Willow Place, an architecturally distinctive midcentury modern townhouse in Brooklyn Heights. I represented the purchasers in its October 2024 sale, which closed at $10.6 million against its $12 million asking price, a difference of $1.4 million, or approximately 11.7%. The property was featured in The Real Deal's coverage of Brooklyn's luxury market. The transaction demonstrates that even at the highest end of the market, there can be meaningful room between an asking price and the ultimate purchase price. The objective is not simply to negotiate a discount, but to establish a value that makes sense for the property and the buyer. 3 4 6 7

Look beyond the purchase price

Condition is another important consideration. Brooklyn's historic housing stock offers qualities that are difficult to reproduce, from original millwork and gracious proportions to architectural detailing and private outdoor space. But older properties also come with practical considerations, including structural conditions, mechanical systems, roofing, waterproofing and the cost of modernizing interiors. A fully renovated townhouse offers the convenience of moving into a completed home without undertaking a lengthy construction project, while an unrenovated property may present an opportunity for buyers willing to invest the time and resources required. The key is understanding the total financial commitment, not simply the acquisition price.

Price per square foot can also be misleading when evaluating townhouses. Two homes with nearly identical square footage may have vastly different values depending on width, ceiling heights, layout, light, outdoor space and renovation quality. Legal configuration matters as well, as a single-family home and a multi-family townhouse may appeal to buyers with different priorities. Comparable sales provide essential context, but the most recent transaction is not necessarily the most relevant one. Understanding why buyers paid what they did is often more valuable than the numbers alone.

Recognizing value

For buyers, some of the most compelling opportunities are not immediately obvious. A property with an extended marketing history may simply have been introduced at an unrealistic price, while another may be overlooked because its potential requires imagination. Conversely, a beautifully presented home generating immediate interest is not automatically worth more than its asking price. Recognizing these distinctions requires an understanding of the property, its competition and the motivations influencing the transaction.

Brooklyn's established townhouse neighborhoods continue to offer distinctive architecture, private space and a sense of permanence. But scarcity alone does not justify every asking price. Whether purchasing a meticulously restored brownstone or a property with untapped potential, the most important consideration is understanding what makes that particular home valuable, and what it is ultimately worth buying for.

About the author

Maggie Marshall is the founder of MM&Co. at Compass, specializing in buyer representation and luxury residential real estate throughout New York City. With more than 20 years of experience, she advises purchasers on property valuation, negotiation and navigating complex transactions across Manhattan and Brooklyn. 5