Apr 3, 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, Brooklyn has seen seasonal softness in rentals over the past few months. Strong leasing activity, landlord concessions, and better marketing may have begun turning that around this year according to the latest data.
Overall, Brooklyn rental prices nudged up by an average of $10 per month in February 2018. While rents and the market continued some modest improvements in February, some of Brooklyn’s most fashionable neighborhoods and recent top performers like Fort Greene lost ground. Top performers, include this month include Bushwick, with a 10.2% rise in studio prices. Crown Heights and Prospect Lefferts Gardens once again showed positive growth.
DUMBO still holds the title for most expensive apartments in Brooklyn, thanks to new luxury units.
The most affordable rental apartments are being seen in Bay Ridge.
Among the most notable stats over the last month was the 13.9% jump in Cobble Hill studio rental prices.
Month over month, overall Brooklyn rents have moved up. Price per square foot reversed previous trends as rose 8.5% in February. Listing inventory fell another 4.2%, and days on market slide further, by over 11% to just 31 days on average.
Year over year, Brooklyn rental prices are still relatively flat. The number of leases being signed are up again this month. This is likely directly linked to an over 30% increase in concessions over last year.
New leases are down by over 15.1%%
OP + Concessions are up 31.8%
Negotiability and discounts fell by just under 1%
Inventory levels dropped by over 21%
And marketing time has dropped to 31 days
This data may be very encouraging landlords after several months of softness. Landlords do appear to be responding to recent softness with stronger offers for new tenants. Lower inventory levels should keep a good balance and leasing activity over the next few months as we warm up for the busy summer season.
Now let’s take a look at rentals by unit type:
The average price per foot is down slightly to $56
average unit size is up slightly to 532 square feet
30 studios are No Fee, and 127 are Fee apartments
Month over month changes saw rents fall 5.6%, though the price per square foot soared by 44%.
And year over year rents are down 0.9%
Renters paid around $6 more per square foot for no fee studio rentals last month.
Having on-site laundry facilities in the building made a positive difference of $2 per square foot in February.
Units with elevators rented for $301 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 almost $660 a month more. Less, than last month, though we could see even more digital and virtual assistants and doormen close this gap.
There was only a minor premium for outdoor space.
For 1 bedrooms...
The average price per foot is down slightly at $42
The average unit size is down again, to 715 square feet
8 1 beds were No Fee, versus 236 Fee apartments
Month over month change rents are up 3.6%
year over year rents are down 3.1%
No fee 1 bedrooms rented for $8 more per square foot than fee apartments last month.
Having a laundry in the building saw 1 beds renting for $6 more per square foot
Units with NO private outdoor space are renting for around $30 less per month
The difference in rents for elevator versus walk-up units is $1 per square foot
Units with gyms rented for $9 more per square foot last month.
Buildings with full-time lobby attendants are renting for almost $400 more per month than those without attendants.
Now on to 2 bedroom rentals…
The average 2 bedroom apartment in Brooklyn now rents for $3,088
The average price per foot is $42
average unit size is 952 square feet
13, 2 bedroom apartments were No Fee rentals, versus 232 Fee rentals
Month over month rents are up 4.1%
But year over year they are down 0.1%
Having a laundry in the building can add almost $300 per month to the rent.
Those with private outdoor spaces rented for $3 more per square foot
A 2 bedroom with a gym in the building is getting $10 more per square foot
Those with full-time lobby attendant are renting for over $1,000 more per month.
There is around a $600 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
the average price per foot is flat at $42
The average unit size is 1,219 square foot
1, 3 bedroom rental was No Fee, versus 91 rentals with Fee
Month over month rents are down 1.2%
year over year rents are UP 16.1%
No FEE apartments rented for almost $6,500 less than fee apartments last month.
Those with gyms rented for $20 more per square foot.
Having a laundry in the building can make a $16 difference per rent per square foot
Expect to get as much almost $1,000 more per month for units with private outdoor space
Elevator apartments rented for $15 more per square foot last month
Having a full-time lobby attendant made a $20 per square foot difference, with total monthly rent almost $3,400 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 concessions may still need to be offered to rent faster. A new dip in inventory levels could mean better conditions over the next few months.
One of the biggest changes in February was the year over year leap in 3 bedroom rental prices. The following growth in the 3bedrooms rental market, suggesting that contrary to some media suggestions, NY renters actually want more space.
Other notable changes show a shift in demand and acceleration of rents to emerging and affordable areas.
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.
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…
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