The fifth annual MNS Report for Brooklyn points positive for New York City’s trendiest borough.
While rent prices continue to skyrocket across the city, Brooklyn growth shows steady hikes for all apartment sizes. Overall, average rents in Brooklyn increased 1.5 percent since 2014, hitting a peak of $2,716 in 2015 from $2,676 in 2014.
Two-bedroom units saw the highest price growth at 2.1 percent, followed by one-bedrooms and studios at 1.3 and 0.8 percent, respectively. Studios went from an average of $2,127 in 2014 to $2,144 in 2015. One-bedrooms rose to $2,607 from $2,574 the year prior. Finally, two-bedroom apartments averaged $3,398 per month in 2015, up from $3,327 in 2014.
While these increases seem small compared to Manhattan, increasing demand for Brooklyn apartments combined with new developments keeps prices growing at a sustainable level.
Where is the demand in Brooklyn?
Williamsburg and Downtown Brooklyn featured enormous growth. Williamsburg average rents went up 9.81 percent for studio apartments, 1.83 percent for one-bedrooms and 4.49 percent for two-bedrooms. Downtown Brooklyn apartments increased 9.03 percent in price for studios, 4.93 percent for one-bedrooms and 4.7 percent for two-bedroom units.
[graphiq id=”jnVr72iyakl” title=”Downtown Brooklyn Brooklyn, NY Profile” width=”600″ height=”598″ url=”https://w.graphiq.com/w/jnVr72iyakl” link=”http://places.findthehome.com/l/146022/Downtown-Brooklyn-Brooklyn-NY” link_text=”Downtown Brooklyn Brooklyn, NY Profile | FindTheHome”]
Conversely, Bay Ridge, Bedford-Stuyvesant, Bushwick, Boerum Hill, Brooklyn Heights, Cobble Hill, DUMBO, Greenpoint and Prospect Lefferts Garden all featured low inventory growth. All but Brooklyn Heights dropped at least some percentage points in either studio, one-bedroom or two-bedroom pricing. Average prices on Greenpoint studios plunged 14.9 percent between 2014 and 2015, the largest percentage drop for all neighborhoods for all apartment sizes.
Like Manhattan, Brooklyn tenants want larger apartments to accommodate families and roommates. But given the lack of high-rises and lavish condo-like rentals, doorman-operated units aren’t as important to Brooklyn lessees.
Brooklyn: Continued growth in coming years
But what does Brooklyn rental market growth mean for real estate professionals? MNS predicts inventory in Williamsburg and Downtown Brooklyn will increase dramatically over the next two to four years, and 2016 remains a pivotal year for development and real estate professionals.
MNS CEO Andrew Barrocas spoke with Inman about rent prices heating up outside of Manhattan and how this may sway agents to reconsider their service ZIP code(s).
“I did and certainly don’t regret it. If you have a large established business in any market you focus in I wouldn’t recommend spreading yourself too thin,” said Barrocas on moving from Manhattan to Brooklyn. “The top brokers in the city have a focus in a particular area or even certain buildings.”
