Jul 22, 2018
Welcome to the New York Real Estate Market Update
Here we dig into the latest data and trends to find out what is really happening in the local Brooklyn rental market to help landlords, real estate investors, and developers make the smartest financial moves.
So, what’s new in New York Real Estate? Let’s take a look at the numbers…
Month over month, the data shows the Brooklyn rental market has mostly maintained recent gains and should continue to gain steam through the rest of the summer break.
Some of the positive data may be credited to landlords offering better deals and concessions, though everyone should be pleased that the market appears to be on the better ground than at the beginning of the year. The exception may be renters who may not see a break coming in much lower rents.
Overall, Brooklyn rental prices nudged up by an average of 1.2% in June 2018. Overall, almost all of Brooklyn saw a positive month for rentals.
Among the most notable stats over the last month was the 6.3% rise in 3 bedroom rents and 27.4% drop in inventory over the same period last year.
Month over month, Price per square foot rose by 1.1%. Listing inventory fell 3.5%, and days on the market slide again, to just 27 days on average.
Year over year, Brooklyn rental prices are still not in much better shape. Rental prices are down an average 0.1% over the same period in 2017. The number of leases being signed fell by 17.7%. More landlords have been offering more appealing deals to lure tenants this year, but the amount of free rent they are offering has been narrowing over the past 3 months.
Now let’s take a look at rentals by unit type:
The average price per foot is up slightly to $58
average unit size is down slightly to 539 square feet
1 studios were No Fee, and 31 were Fee apartments
Month over month changes saw rents up 4.1%, and price per square foot jumped 7.4%.
Year over year rents are up 4%
Units with elevators rented for almost $500 per month more than walk-up units last month.
Gyms are still one of the top amenities tenants are looking for. They added an average of around $400 per month to rents last month.
Units with full-time lobby attendance are renting for around $100 a month more.
Having a laundry in the building added around $200 a month to rental rates.
For 1 bedrooms...
The average price per foot is up slightly by 1.1%
The average unit size is up to 730 square feet
11, 1 beds were No Fee, versus 135 Fee apartments
Month over month change rents are up 0.1%
year over year rents are up 1.6%
No fee 1 bedrooms rented for over $12 more per square foot than fee apartments last month.
Having a laundry in the building saw 1 beds renting for $8 more per square foot
Units with NO private outdoor space are renting for around $100 less per month
The difference in rents for elevator versus walk-up units is $600 per month
Units with gyms rented for $11 more per square foot last month.
Buildings with full-time lobby attendants are renting for almost $700 more per month than those without attendants.
Now on to 2 bedroom rentals…
The average 2 bedroom apartment in Brooklyn now rents for $3,837
The average price per foot is $45
average unit size is 1,030 square feet
3, 2 bedroom apartments were No Fee rentals, versus 122 Fee rentals
Month over month rents are down 1.7%
But year over year they are up 1.6%
Having a laundry in the building can add $5 per square foot to the rent last month
Those WITH private outdoor spaces rented for $4 more per square foot
A 2 bedroom with a gym in the building is renting for almost $1,000 more per month
Those with full-time lobby attendant are renting for around $1,300 more per month.
There is around a $1,000 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
the average price per foot was at $43 in June
The average unit size is up to 1,260 square foot
2, 3 bedroom rental were No Fee, versus 38 rentals with Fee
Month over month rents are up 6.3%
year over year rents are UP 5.4%
No FEE apartments rented for over $2,000 more than fee apartments last month.
Those with gyms rented for $7 more per square foot.
Having a laundry in the building made a $2 difference per square foot last month
Expect to get as much as $1,800 more per month for units with private outdoor space
Elevator apartments rented for $8 more per square foot last month
Having a full-time lobby attendant made a $9 per square foot difference, with total monthly rent almost $1,600 more for 3 bedroom units in these buildings
What the break down in this data shows Brooklyn landlords, is that the market is still strong, but many landlords are making concessions to be able to rent faster and even keep rents heading up. The most growth in rental rates is being seen in existing 3 plus bedroom apartments.
Find out more about the current market, competing listings, and where to get the best help in leasing your rental units by contacting The Ratner Team.
Plus, make sure to check out the special edition of the Brooklyn Made blog revealing what’s in store for Brooklyn real estate for the next 100 years, including what’s being developed where, and the types of projects and zoning the Brooklyn Chamber of Commerce is pushing for.
Well, that’s this month’s NY rental market update.
Leave us a comment and let us know what you are experiencing in the market, and what you’d like more detail on in the next report…
Thanks for tuning in!